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Pardee rebounding from 2016 loss

A winter flu outbreak, a substantial gain in surgeries and cost controls propelled Pardee Hospital to a financial rebound from last year’s $13 million loss, administrators said.

Pardee ended its 2015-16 fiscal year with a $15.2 million loss that executives attributed to installation of a new systemwide computer system, hiring new physicians and operations and capital investments that are expected to pay off in the coming months and years. Hospital officials said they expected financial improvements this year because the big expenses in 2016 were one-time investments that would lead to efficiencies and better practices to drive business growth.
Pardee’s Finance Committee reported to the Board of Directors last week that total patient revenue for the first five months of FY2016-17 exceeded $263.2 million while expenses came in $1.35 million less than budget, resulting in a net gain that was $804,000 ahead of last year and $2.1 million better than budget. Inpatient admissions rose by 6 percent — 19 percent better than the same period a year earlier — while inpatient and outpatient surgeries surged by 17 percent year over year.
“What a difference a year makes,” CEO Jay Kirby told the board. “We’ve still got one quarter to go in this shortened year but we feel good about this year and we’re proud of the turnaround.”
Pardee switched from an October-September on the federal timetable to a July-June fiscal year that aligned with the state’s the UNC Health Care’s schedule.
The Pardee Foundation reported good news, too, on the philanthropy front.
Kim Hinkleman, executive director of the foundation, said 270 donors have moved the foundation close to its $6 million goal for the Comprehensive Cancer Center.
“The campaign was not just about raising money but also about planting seeds and preparing for what comes next,” she said. “It was a three-year campaign but we’re going to bring it in in two years. Half of the donors were first-time donors. That’s extraordinary.”
Going into the campaign in April 2015, she predicted that most donations would come from “loyal donors and older donors.” Instead, donors under 70 years old gave. “That’s great news for us. That gives us the opportunity to work with these people who continue to grow as donors and continue to support the hospital.”
Pardee board Chair Bill Medina, who also serves as co-chair of cancer center fundraiser, praised the effort.
“This has been one of the most successful marketing campaigns we’ve ever had,” he said.