CPH Sees Net Income Increase

Central Peninsula Hospital is receiving less funding, and CEO Rick Davis told the Borough Assembly last night, they’re facing shrinking margins…

 

Davis: “We had an 11 percent increase, and by charges, I mean the total volume that we charge for, so we’ve had volume increases, slight charge adjustments, representing an 11 percent increase, but our net revenue, which is what we’re expecting to receive, is only up 7 percent. So, we’re starting to see some of that compression, from healthcare reform, Medicare reductions, more pressure from the payers, that we’ve been talking about for the last several years.”

 

However, CPH’s net income is still increasing…

 

Davis: “The fact that our net income is actually up 56 percent is very significant, because what that means is even with a very small revenue increase, our expenses actually did not increase.”

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