LBJ’s 3rd qtr performance report shows nothing new
LBJ Medical Center received a new cash infusion during the 3rd quarter of fiscal year 2016, thanks to money from the American Samoa Economic Development Authority (ASEDA) bonds, according to LBJ’s third quarter performance report — for Apr. 1- June 30 — which also shows the hospital received less money than budgeted in the 3rd quarter from the 2% wage tax — a contentious issue between the hospital and ASG Treasury Department.
According to the report, total operating revenue budgeted for third quarter was $11.27 million but the hospital received only $10.70 million. Data in the report shows that LBJ received $904,676 in June and this was unbudgeted, for reimbursement for capital equipment covered by ASEDA bonds. (ASEDA board has approved just over $2 million to finance equipment for LBJ.)
Regarding the ASG subsidy, $1.5 million was budget for the 3rd quarter but only $966,053 was received. A footnote in the report states that the shortfall was due to not receiving the subsidy every month in the 3rd quarter but it was received for previous months owed and offset with government property insurance.
On the wage tax, for which $516,000 was budgeted, the hospital received $933,689, with a footnote saying that the “higher than budget amount is that LBJ received more in this quarter than in the previous months.”
For revenues collected at the hospital, $1.6 million was budgeted for the quarter, but $1.40 million was collected. However, the hospital got a lot more than budgeted for fuel tax — $67,625 was budgeted while $104,851 was received because of two payments — about $59,000 to cover April and May — were received in June.
On the area of federal funding, the biggest drop was in Medicare and federal Affordable Care Act (ACA), or Obamacare. For Medicare, $1.07 million was budgeted but only $174,651 was received and a footnote in the report blamed “billing issues” which caused the delay in payments being received. Under ACA funding, LBJ budgeted $1.36 million but received in June only $904,676.
According to the report, the Interior Department subsidy and Medicaid funds received fell within the budget amount for the quarter.
The report also noted “donations” totaling $11,700 — with $10,7000 received in April from CCCAS Alofau with $2,000; Nana’s company with $5,000 and Assembly of God with $3,000; and $1,000 in June from Nu’uuli Vocational Technical High School for Pediatric Echocardiogram.
Total operating expenses came to $11.33 million, although total budget for the quarter was $11.4 million. For personnel costs (budget at just over $7 million and the highest expenditure) and pharmaceutical & supplies (budget at $3.17 million) — both spending was lower — than the budget amount, with “11% surplus” for personnel” and “13% surplus” for pharmaceutical & supplies.
For the off-island medical referral program, for which only $62,750 was budgeted, LBJ said total expenses came to $118,725 — higher than budgeted due to the high number of patients traveling off island for medical treatment.
Under “purchased services” expenditures, LBJ had budgeted $188,125 but total came to $423,595. A footnote in the report says that the higher costs than budget were due to three reasons: $93,000 increase in April due to lab test and drug tests sent off island for testing; $10,000 annual inspection of Xray; $25,000 on maintenance rental and installations; and $76,000 for airfreight costs of medical supplies.
For travel — excluding the referral program — $16,625 was budgeted, but total amount came to $94,814. The higher cost than budget, according to the report, was that in May an increase is due to multiple doctors and nurses traveling for training and conferences, renewable contracts and new employees coming to LBJ.
Under “professional services”, $42,125 was budgeted but total expenses came to $107,062. The higher cost than budget, according to a footnote, is employees with no social security number are not paid through payroll, and pick up two payments in one quarter. No other information was provided in the footnote as to how many employees with no social security number are not paid through payroll.
For repair and maintenance, the budget was $10,500 but total came to $40,326 due to EMS ambulances being repaired at a local shop.