PENINSULA REGIONAL HEALTH SYSTEM, INC.

Transcription

1 PENINSULA REGIONAL HEALTH SYSTEM, INC. CONSOLIDATED FINANCIAL REPORT December 2016 PENINSULA REGIONAL HEALTH SYSTEM, INC. 100 East Carroll Street, Salisbury, Maryland Telephone (410)

2 CONSOLIDATED BALANCE SHEET DECEMBER 2016 Page 1 ASSETS CURRENT MONTH FISCAL YEAR ENDED PERCENT December 31, 2016 June 30, 2016 CHANGE CURRENT ASSETS: Cash & Investments $31,922,376 $43,513, % Patient accounts receivable Less allowance/doubtful accounts 50,756,037 41,469, % Accounts receivable - other 3,030, , % Inventory 9,510,391 9,701, % Prepaid expense 7,045,563 6,326, % Current portion self-insurance fund 525, , % Total current assets 102,789, ,300, % LONG-TERM INVESTMENTS: Operations 225,240, ,353, % Board designated 24,531,142 23,583, % Total long-term investments 249,772, ,936, % PROPERTY, PLANT & EQUIPMENT: Property, Plant & Equipment 507,409, ,011, % Less Allowance for Depreciation 313,052, ,091, % 194,357, ,920, % Construction in Progress 35,410,926 25,923, % Total property, plant & equipment 229,768, ,843, % ASSETS LIMITED AS TO USE: Constructions Fund 4,807,387 10,227, % Donor Restricted Fund 31,770,093 33,217, % Self-Insurance Fund 19,353,744 19,712, % Total assets limited as to use 55,931,224 63,158, % OTHER ASSETS: Unamortized assets 1,322,545 1,348, % Other assets 22,050,470 19,663, % Total other assets 23,373,015 21,011, % TOTAL ASSETS 661,634, ,251, %

3 CONSOLIDATED BALANCE SHEET DECEMBER 2016 Page 2 CURRENT MONTH FISCAL YEAR ENDED PERCENT December 31, 2016 June 30, 2016 CHANGE CURRENT LIABILITIES: Accounts payable $23,571,954 $18,089, % Accrued salaries 5,406,304 4,669, % Accrued vacations 7,750,088 8,139, % Other employee compensation related accruals 412,254 2,126, % Advances third-party payors 9,939,099 11,401, % Accrued interest payable 0 0 Current portion long term debt 2,069,766 2,068, % Current portion self-insurance liabilities 2,495,000 2,495, % Total current liabilities 51,644,465 48,989, % LONG-TERM LIABILITIES - NET OF CURRENT PORTION: Other liabilities 39,572,978 38,536, % Long-term debt 142,857, ,318, % Minority interest 1,878,815 1,818, % Total long term liabilities 184,309, ,673, % NET ASSETS: Unrestricted 393,474, ,285, % Temporarily restricted 23,957,953 25,058, % Permanently restricted 8,247,756 8,244, % Total net assets 425,680, ,588, % TOTAL LIABILITIES AND NET ASSETS 661,634, ,251, %

4 CONSOLIDATED STATEMENT OF OPERATIONS ACTUAL TO PRIOR YEAR COMPARISON MONTH OF DECEMBER 2016 Page 3 Current Period Year-toDate VARIANCE % VARIANCE % Operating revenue: Gross inpatient revenue $20,774,372 $22,254,634 ($1,480,262) -6.7% $118,669,372 $121,385,120 ($2,715,748) -2.2% Gross outpatient reg revenue 14,315,365 15,976,914 (1,661,549) -10.4% 93,731,603 94,166,473 (434,870) -0.5% Gross outpatient unreg revenue 8,045,333 7,435, , % 48,739,669 43,776,084 4,963, % Total patient revenue 43,135,070 45,667,431 (2,532,361) -5.5% 261,140, ,327,677 1,812, % Deductions from patient revenue 8,335,022 8,660, , % 52,201,421 49,677,380 (2,524,041) -5.1% Patient revenue (net of deductions) 34,800,048 37,006,768 (2,206,720) -6.0% 208,939, ,650,297 (711,074) -0.3% Provision for Bad Debts 1,044,300 1,262, , % 6,302,054 6,684, , % Net patient revenue less provison for bad debts 33,755,748 35,743,864 (1,988,116) -5.6% 202,637, ,966,221 (329,052) -0.2% Other operating revenue 160, ,530 (6,014) -3.6% 1,170,945 1,763,639 (592,694) -33.6% Total revenue and other support 33,916,264 35,910,394 (1,994,130) -5.6% 203,808, ,729,860 (921,746) -0.5% Operating expenses: Salaries 15,721,250 14,395,854 (1,325,396) -9.2% 88,753,657 81,437,422 (7,316,235) -9.0% Temporary labor 557, ,343 15, % 3,129,990 3,582, , % Employee benefits 3,082,888 1,992,136 (1,090,752) -54.8% 18,351,139 17,393,486 (957,653) -5.5% Supplies and other expenses 13,719,433 14,548, , % 94,482,591 86,220,550 (8,262,041) -9.6% Depreciation 2,332,577 1,835,565 (497,012) -27.1% 12,433,839 11,120,267 (1,313,572) -11.8% Interest expense 452, ,958 (16,928) -3.9% 2,717,253 2,615,652 (101,601) -3.9% Amortization expense 4,367 4, % 26,205 26, % Total operating expenses 35,870,487 33,785,200 (2,085,287) -6.2% 219,894, ,395,919 (17,498,755) -8.6% Operating surplus (deficit) (1,954,223) 2,125,194 (4,079,417) % (16,086,560) 2,333,941 (18,420,501) % Non-operating income(expense): Non-operating income 1,076,647 1,308,775 (232,128) -17.7% 9,853,171 7,823,527 2,029, % Minority interest in earnings of controlled subsidiaries (18,111) (124) (17,987) % (60,692) (9,644) (51,048) 529.3% 1,058,536 1,308,651 (250,115) -19.1% 9,792,479 7,813,883 1,978, % SURPLUS(DEFICIT) ($895,687) $3,433,845 ($4,329,532) % ($6,294,081) $10,147,824 ($16,441,905) %

5 CONSOLIDATING BALANCE SHEET December 31, 2016 Page 4 ASSETS Peninsula Peninsula Peninsula PRMC Peninsula Peninsula Regional Regional Health Clinically Women's Health Medical Foundation Ventures Integrated Center System Fiscal Year Ended Percent Center Inc. Inc. Network LLC Inc. Eliminations Consolidated June 30, 2016 Change CURRENT ASSETS: Cash & Investments $27,956,541 $1,228,849 $2,721,504 $401 $520 $14,561 $0 $31,922,376 $43,513, % Patient accounts receivable Less allowance/doubtful accounts 50,213, , ,756,037 41,469, % Accounts receivable - other 3,025, , ,030, , % Intercompany receivables 660, (660,342) (b 0 0 Inventory 9,117, , ,510,391 9,701, % Prepaid expense 6,934, , ,045,563 6,326, % Current portion self-insurance fund 525, , , % Total current assets 98,433,232 1,228,849 3,772, ,561 (660,342) 102,789, ,300, % LONG-TERM INVESTMENTS: Operations 225,240, ,240, ,353, % Board designated 24,531, ,531,142 23,583, % Investment in sudsidiaries ,042,478 (428,042,478) (a 0 0 Total long-term investments 249,772, ,042,478 (428,042,478) 249,772, ,936, % PROPERTY, PLANT & EQUIPMENT: Property, Plant & Equipment 498,127, ,621, ,660, ,409, ,011, % Less Allowance for Depreciation 309,089, ,962, ,052, ,091, % 189,037, ,659, ,660, ,357, ,920, % Construction in Progress 35,410, ,410,926 25,923, % Total property, plant & equipment 224,448, ,659, ,660, ,768, ,843, % ASSETS LIMITED AS TO USE: Constructions Fund 4,807, ,807,387 10,227, % Donor Restricted Fund 31,770,093 4,387, (4,387,605) (b 31,770,093 33,217, % Self-Insurance Fund 19,353, ,353,744 19,712, % Total assets limited as to use 55,931,224 4,387, (4,387,605) 55,931,224 63,158, % OTHER ASSETS: Unamortized assets 1,286, , ,322,545 1,348, % Other assets 10,353, ,413, ,283, ,050,470 19,663, % Total other assets 11,640, ,449, ,283, ,373,015 21,011, % TOTAL ASSETS $640,224,924 $5,616,454 $16,881,189 $401 $1,660,933 $430,340,829 ($433,090,425) $661,634,305 $661,251, % (a) To eliminate investment in subsidiaries (b) To eliminate intercompany receivables and transfer of net assets

6 CONSOLIDATING BALANCE SHEET December 31, 2016 Page 5 L I A B I L I T I E S A N D N E T A S S E T S Peninsula Peninsula Peninsula PRMC Peninsula Peninsula Regional Regional Health Clinically Women's Health Medical Foundation Ventures Integrated Center System Fiscal Year Ended Percent Center Inc. Inc. Network LLC Inc. Eliminations Consolidated June 30, 2016 Change CURRENT LIABILITIES: Accounts payable $23,093,517 $0 $478, $0 $0 $23,571,954 $18,089, % Accrued salaries 5,406, ,406,304 4,669, % Accrued vacations 7,750, ,750,088 8,139, % Other employee compensation related accruals 412, ,254 2,126, % Intercompany payables 0 62,858 64, ,378 66, ,875 (660,342) (b) 0 0 Advances third-party payors 9,939, ,939,099 11,401, % Accrued interest payable Current portion long term debt 1,990, , ,069,766 2,068, % Current portion self-insurance liabilities 2,495, ,495,000 2,495, % Total current liabilities 51,086,262 62, , ,378 66, ,875 (660,342) 51,644,465 48,989, % LONG-TERM LIABILITIES - NET OF CURRENT PORTION: Other liabilities 39,572, ,572,978 38,536, % Long-term debt 141,203, ,654, ,857, ,318, % Minority interest 0 0 1,878, ,878,815 1,818, % Total long term liabilities 180,775, ,533, ,309, ,673, % NET ASSETS: Unrestricted 376,156,971 1,165,991 12,724,860 (192,977) 1,594, ,474,640 (391,449,164) (a) 393,474, ,285, % Temporarily restricted 23,957,953 4,387, ,345,558 (32,733,163) (a)(b) 23,957,953 25,058, % Permanently restricted 8,247, ,247,756 (8,247,756) (a) 8,247,756 8,244, % Total net assets 408,362,680 5,553,596 12,724,860 (192,977) 1,594, ,067,954 (432,430,083) 425,680, ,588, % TOTAL LIABILITIES AND NET ASSETS $640,224,924 $5,616,454 $16,881,189 $401 $1,660,933 $430,340,829 ($433,090,425) $661,634,305 $661,251, % (a) To eliminate investment in subsidiaries (b) To eliminate intercompany receivables and transfer of net assets

7 CONSOLIDATING STATEMENT OF OPERATIONS ACTUAL TO PRIOR YEAR COMPARISON MONTH OF DECEMBER 2016 Page 6 Peninsula Peninsula Peninsula PRMC Peninsula Peninsula Regional Regional Health Clinically Women's Health Medical Foundation Ventures Integrated Center System Center Inc. Inc. Network LLC Inc. Eliminations Consolidated Prior Year Variance % Operating revenue: Gross inpatient revenue $20,774,372 $0 $0 $0 $0 $0 $0 $20,774,372 $22,254,634 ($1,480,262) -6.7% Gross outpatient reg revenue 14,315, ,315,365 15,976,914 (1,661,549) -10.4% Gross outpatient unreg revenue 6,878, ,166, ,045,333 7,435, , % Total patient revenue 41,968, ,166, ,135,070 45,667,431 (2,532,361) -5.5% Deductions from patient revenue 7,604, , ,335,022 8,660, , % Patient revenue (net of deductions) 34,364, , ,800,048 37,006,768 (2,206,720) -6.0% Provision for Bad Debts 1,045,386 0 (1,086) ,044,300 1,262, , % Net patient revenue less provison for bad debts 33,318, , ,755,748 35,743,864 (1,988,116) -5.6% Other operating revenue 159, , , ,530 (6,014) -3.6% Assets released from restriction 0 3,559, (3,559,319) (b) Total revenue and other support 33,478,194 3,559, , (3,559,319) 33,916,264 35,910,394 (1,994,130) -5.6% Operating expenses: Salaries 15,671, , ,721,250 14,395,854 (1,325,396) -9.2% Temporary labor 557, , ,343 15, % Employee benefits 3,077, , ,082,888 1,992,136 (1,090,752) -54.8% Supplies and other expenses 13,166, ,876 39,553 37, (b) 13,719,433 14,548, , % Depreciation 2,312, , ,332,577 1,835,565 (497,012) -27.1% Interest expense 446, , , ,958 (16,928) -3.9% Amortization expense 3, ,367 4, % Contributions to Hospital 0 3,559, (3,559,319) (b) Total operating expenses 35,234,871 3,560, ,201 94,955 37,662 0 (3,559,319) 35,870,487 33,785,200 (2,085,287) -6.2% Operating surplus (deficit) (1,756,677) (798) (64,131) (94,955) (37,662) 0 0 (1,954,223) 2,125,194 (4,079,417) % Non-operating income(expense): Non-operating income 869, , ,076,647 1,308,775 (232,128) -17.7% Minority interest in earnings of controlled subsidiaries 0 0 (18,111) (18,111) (124) (17,987) % 869, , ,058,536 1,308,651 (250,115) -19.1% SURPLUS(DEFICIT) ($886,733) ($422) $124,082 ($94,955) ($37,662) $3 $0 ($895,687) $3,433,845 ($4,329,532) % (b) To eliminate intercompany transfer of net assets

8 CONSOLIDATING STATEMENT OF OPERATIONS ACTUAL TO PRIOR YEAR COMPARISON YEAR TO DATE DECEMBER 2016 Page 7 Peninsula Peninsula Peninsula PRMC Peninsula Peninsula Regional Regional Health Clinically Women's Health Medical Foundation Ventures Integrated Center System Center Inc. Inc. Network LLC Inc. Eliminations Consolidated Prior Year Variance % Operating revenue: Gross inpatient revenue $118,669,372 $0 $0 $0 $0 $0 $0 $118,669,372 $121,385,120 ($2,715,748) -2.2% Gross outpatient reg revenue 93,731, ,731,603 94,166,473 (434,870) -0.5% Gross outpatient unreg revenue 42,064, ,674, ,739,669 43,776,084 4,963, % Total patient revenue 254,465, ,674, ,140, ,327,677 1,812, % Deductions from patient revenue 47,955, ,245, ,201,421 49,677,380 (2,524,041) -5.1% Patient revenue (net of deductions) 206,509, ,429, ,939, ,650,297 (711,074) -0.3% Provision for Bad Debts 6,306,411 0 (4,357) ,302,054 6,684, , % Net patient revenue less provison for bad debts 200,203, ,433, ,637, ,966,221 (329,052) -0.2% Other operating revenue 1,165, , ,170,945 1,763,639 (592,694) -33.6% Assets released from restriction 0 3,618, (3,618,702) (b) Total revenue and other support 201,368,858 3,618,702 2,439, (3,618,702) 203,808, ,729,860 (921,746) -0.5% Operating expenses: Salaries 88,473, ,728 6, ,753,657 81,437,422 (7,316,235) -9.0% Temporary labor 3,129, ,129,990 3,582, , % Employee benefits 18,321, , ,351,139 17,393,486 (957,653) -5.5% Supplies and other expenses 91,038,897 2,121 3,035, , , ,482,591 86,220,550 (8,262,041) -9.6% Depreciation 12,313, , ,433,839 11,120,267 (1,313,572) -11.8% Interest expense 2,677, , ,717,253 2,615,652 (101,601) -3.9% Amortization expense 22, , ,205 26, % Contributions to Hospital 0 3,618, (3,618,702) (b) Total operating expenses 215,978,471 3,620,823 3,198, , ,848 0 (3,618,702) 219,894, ,395,919 (17,498,755) -8.6% Operating surplus (deficit) (14,609,613) (2,121) (759,019) (493,959) (221,848) 0 0 (16,086,560) 2,333,941 (18,420,501) % Non-operating income(expense): Non-operating income 7,921,833 2,467 1,928, ,853,171 7,823,527 2,029, % Minority interest in earnings of controlled subsidiaries 0 0 (60,692) (60,692) (9,644) (51,048) 529.3% 7,921,833 2,467 1,868, ,792,479 7,813,883 1,978, % SURPLUS(DEFICIT) ($6,687,780) $346 $1,109,156 ($493,959) ($221,848) $4 $0 ($6,294,081) $10,147,824 ($16,441,905) %

9 Peninsula Regional Health System, Inc. Note to Financial Statements (Unaudited) Month and Six Months Ended December 31, 2016 Note 1 Basis of Presentation The accompanying unaudited consolidated financial statements of Peninsula Regional Health System, Inc. (PRHS) have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for the fair presentation have been included. The consolidated balance sheet at June 30, 2016 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the audited consolidated financial statements and footnotes thereto for the year ended June 30, Note 2 Investment in Advanced Health Collaborative II On September 30 th, PRHS invested $2.2 million in Advanced Health Collaborative II, LLC(AHC II) a Maryland Limited Liability Corporation. AHC II is a minority owner (24%) of Maryland Health Advantage, LLC a Delaware Limited Liability Corporation which was formed to invest in Hopkins Health Advantage, Inc. a licensed insurance company that administers a Medicare Advantage Insurance product. page 8