HomeMy WebLinkAbout20194265.tiff NCMC Board of Trustees
Regular Session Minutes
Monday, July 29, 2019
12:00 Noon
The Board of Trustees of North Colorado Medical Center met in Regular Session on Monday,
July 29, 2019, in the Richard Stenner Boardroom located at North Colorado Medical Center.
Mark Lawley, Chair, declared a quorum and called the meeting to order at 12:00 p.m.
ATTENDANCE ROSTER
NCMC Board of Trustees: Mark Lawley, Catherine Davis, Kevin Mullin, Michael Simone, and
Jason Yeater, and Sean Conway (Commissioner, non-voting member), with Kay Kosmicki
and Brian Underwood both Excused
Banner Health: Margo Karsten (NCMC CEO)-Excused, Derek Strader (NCMC COO)
Staff:Jeff Carlson (INC. Board Exec. Dir.)-Excused
Recording Clerk: Esther Gesick (Weld County Clerk to the Board)
PUBLIC COMMENT-There was no public comment.
APPROVAL OF MINUTES
It was MSC (Yeater/Davis) to approve the minutes from the June 24, 2019, Regular Session
meeting.
NCM CEO/COO REPORT
Derek Strader reported there has been ongoing dialogue regarding the Colorado Department
for Hospital Policy and Finance,which recently held a meeting with the NLCA and shared data
through 2017,collected by their system called Prometheus,concerning UC Health and Banner
in the market and each of the hospital margins and revenue. The focus for the Finance team
was talking to local industry leaders and large employers that have healthy margins,
becoming familiar with their data, and also working with the local RAE (Regional Accountable
Entity) which owns Medicaid for the region on initiatives to reduce cost to the Medicaid
population and being more proactive to prevent them from coming to higher acute settings
that have associated costs. Mr. Strader stated they are also moving forward with the waiver
where Medicaid will cover expenses of substance abuse disorder and pay for in-patient
treatment. He stated the transition is complicated because the Emergency Department (ED)
has a bed shortage but is also trying to address substance abuse among expectant mothers.
He reported the UC Health Greeley Hospital is now open, which has created some capacity at
NCMC and McKee, and as expected, there has been some ED volume shift on the in-patient
side, which also translates to impacts on the financials. He stated they will continue to track
the shift and anticipate a balance as the UC volume and wait times increase. Concerning the
Ambulance Service, he stated Dave Lawson has been working with the VP of Ambulance
Services, who reported the UC Health Ambulances have refused to bring patients to NCMC
Page 1 of 3 July 29,2019 NCMC Board of Trustees
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and took them to the new hospital, whereas, the NCMC Ambulance Service has taken 60
patients to UC Health because it was the closest facility for care, or in response to a direct
request of the patient. He stated the situation needs to be rectified and will be monitored,
explaining if NCMC does not receive any ambulance patients from Evans, LaSalle and Kersey,
•
then they need to justify how the UC Health facility is closer than NCMC. Concerning
Medicaid, Mr. Strader explained NCMC receives $0.19 per $1.00, and some services are
provided but the reimbursement does not cover the cost of the service. The reimbursement
for Medicare is a little higher, but it cannot sustain the margins, overall, and he discussed the
contracted rates.
COMMISSIONER'S REPORT
Commissioner Conway reported the new Oil and Gas Regulations have been adopted and the
Weld County Department of Oil and Gas Energy has been established, with Jason Maxey
appointed as the Department Head. He stated staff is being hired and the department is set
to open on August 5, 2019. He explained the County is taking advantage of its 1041 powers
which are reserved to the Counties and, if the Colorado Oil and Gas Conservation Commission
(COGCC) requires a 2A permit, the State will not have the opportunity to comment on local
land use decisions. He stated the County Attorney met with Director Robbins this morning
and the Commissioners are hopeful it will be a cooperative relationship in the coming years.
He further stated there is a lot of municipal interest from local municipalities to have the
County assist with their permitting needs. Commissioner Conway also discussed the plan for
an upcoming, interactive process to review the Comprehensive Plan, as well as a
Transportation Plan (in coordination with NFRMPO, DRCOG, and UFRMPO), in response to
extensive growth throughout the County. The draft will be unveiled at the Farm Show in
January and then start engaging in a robust public process to gain input and suggestions
throughout 2020, prior to formal approval. In response to Mr. Mullin, Commissioner Conway
discussed various regional transportation improvement projects, including U.S. Highway 34,
the Boulder Turnpike, and the 1-25 project.
VISITATION REPORT FOR JULY 29, 2019
BANNER CORPORATE (PHOENIX) CHATBOT: Josh Snyder, PMO Portfolio Director, was in
attendance via a teleconference to provide an overview of the Chatbot technology. Following
the meeting, Mr. Lawley submitted a summary of the presentation and related discussion, a
written copy of which is attached as a part of these minutes. Mr. Yeater prepared and
delivered a note of thanks.
VISITATION REPORT FOR AUGUST 26, 2019
Kay Kosmicki and Michael Simone
NCMC, INC. REPORT- None.
NEW BUSINESS - None.
Page 2 of 3 July 29,2019 NCMC Board of Trustees
ADJOURN
There being no further business to come before the Board, it was MSC [Simone/Davis] to
adjourn the meeting at 1:00 p.m.
Respectfully submitted,
Esther Gesick
Page 3 of 3 July 29,2019 NCMC Board of Trustees
t
r
Department- Banner Corporate
Trustee Report- Jason Yeater and Mark Lawley
Presenter - Josh Snyder, PMO Portfolio Director, Chat Box Presentation
History- Healthcare accounts for 18% of the US economy . 65% of its customers — patients -- believe
their providers could do a better job of engaging them . More than half share experiences online and the
reviews speak for themselves . Hospitals rank below most other service industries on Yelp, at 2 . 4 stars
out of 5 .
75 % of patients are non - adherent to their care plans . Disengaged patients are expensive,
costing sign75 % of patients are non - adherent to their care plans . Disengaged patients are
expensive, costing significantly more than engaged patients in avoidable hospital admittances ,
higher treatment costs , low prescrip75 % of patients are non - adherent to their care plans .
Disengaged patients are expensive, costing significantly more than engaged patients in
avoidable hospital admittances , higher treatment costs, low prescription adherence , and
preventable deaths . It' s a $ 300B problem . Healthcare providers must fix this .
_ _
{ .;r - _ '•per`n.'.t,-'a: _
1.r- S pyf.
Disengaged patients cost more
Solutions-
Better communication is key to engagement, but current
strategies fall short .
With 85% of adults owning smartphones, the world has clearly gone mobile . Apps, however,
are not the answer.
Adoption Rate 2%
There are around 318 , 000 mobile health apps on the market, but only 2% of patients engage
with hospital apps.
Retention Rate 10%
Only 10% of an app's users use the app 30 days after download, and users delete one app for
every new one they get .
r
Time Outside Core Apps 12%
People are downloading fewer apps and consolidating app usage, with only 12%of their time
spent outside just five core apps.
Text messaging is now the way people communicate.
93%of us are texting, and 98%of text messages are opened.Text messaging is convenient,
intuitive, and doesn't require training or downloading.
Chatbots are mobile,text-based conversations. By 2020, chatbots will automate$65B of consumer
engagement. Healthcare's patient workflows are defined, repeatable, and primed for chatbot
automation. Here are a feWs p]examples of how chatbots are improving healthcare:
For Example-
Emergency Department Chatbot
Do you want to stay digitally connected during your emergency department visit?
Provide your cell phone number at check-in and you will automatically receive a
welcome text message with a link to access our chatbot tool. Don't worry, you can
opt-out via text if you change your mind and do not wish to receive communications
and updates during your stay.
What's a chatbot?
A chatbot is tool used to keep you connected, updated and informed throughout
your emergency department visit. Examples of information included are:
• Estimated time to see a doctor
• Estimated time to receive lab or imaging results
• Information on cafeteria hours
• Information on how to connect with MyBanner
Participating locations include:
• Banner Desert Medical Center
• Banner Gateway Medical Center
• Banner North Colorado Emergency Care
• Banner Thunderbird Medical Center
• Banner - University Medical Center Phoenix
• North Colorado Medical Center
NCMC BOARD OF TRUSTEES
Regular Session Meeting
Monday, August 26, 2019
Attachment 2
Financial Statements for
Second Quarter ending June 30, 2019
ri
NCMC, Inc.
1801 16th Street
Greeley, Colorado 80631
(970)810-6052
August 13, 2019
Via Email To: mlawleyl @msn.com
Mr. Mark Lawley
President
NCMC Board of Trustees
1801 16th Street
Greeley, CO 80631
Dear Mr. Lawley:
Pursuant to the Amended and First Restated Operating Sublease dated May 1, 2016 between the
Board of Trustees for North Colorado Medical Center and NCMC, Inc., we submit the following
documents for your information and review:
1. Financial Statements of the Combined Entity (NCMC, Inc. and North Colorado
Medical Center) for the Quarter ended June 30, 2019.
2. Financial Statements of NCMC, Inc. for the Quarter ended June 30, 2019.
3. Financial Statements of North Colorado Medical Center for the Quarter ended June
30, 2019
If you have any questions or concerns, please do not hesitate to contact me.
Very truly yours,
Jeff Carlson
Executive Officer
Enclosures (4)
CONTINUING DISCLOSURE COMPLIANCE
EXHIBITS A-1 through A-4
Covenant Ratios
For the Quarter ended June 30, 2019
NCMC, Inc & Banner Health/NCMC (Recombined Entity)
Covenant Ratio Analysis (Unaudited)
For the Six Month Period Ended June 30, 2019
A-1. LIQUIDITY COVENANT - Unrestricted Cash & Investments-to-Days of Operating Expense (000s): A-3. DEBT COVERAGE COVENANT - Net Income Available for Debt Service-to-MADS (000s):
Unaudited December 31, Unaudited December 31,
06/30/19 2018 2017 2016 2015 2014 2013 06/30/19 2018 2017 2016 2015 2014 2013
Cash and Cash Equivalents 14,445 11,295 10,302 7,925 12,218 7,932 20,873 Revenues in Excess of Expenses * 37,442 10,167 48,069 10,900 48,071 54,740 36,897
Long Term Investments 334,222 297,636 316,765 281,881 249,171 290,044 274,457 Depreciation Expense 11,863 24,171 24,562 27,861 22,033 20,787 21,762
348,667 308,931 327,067 289,806 261,389 297,976 295,330 Interest & Amortization Expense 3,374 6,958 7,229 6,966 7,645 7,861 5,778
Unrealized (Gain) Loss - Investments * (24,753) 29,973 (16,009) (5,232) - - -
Net Operating Expenses (Cash) [Annualized) 422,329 397,169 396,118 380,456 378,574 365,434 376,365 Other Non-Cash & Non-Recurring Adjustments 456 26 (2,720) 12,994 - - -
Net Income Available for Debt Service 28,382 71,295 61,131 53,489 77,749 83,388 64,437
Average Daily Operating Expense 1,157 1,088 1,085 1,042 1,037 1,001 1,031 Net Income Available for Debt Service [Annualized) 56,764
Days Cash-on-Hand 301 284 301 278 252 298 286 Maximum Annual Debt Service 17,431 17,431 17,692 17,826 19,256 19,2% 19,2%
Required Days Cash-on-Hand 100 100 100 100 100 100 100
Debt Service Coverage Ratio 3.26 4.09 3.46 3.00 4.04 4.32 3.34
Conclusion: Required Ratio is Satisfied. Minimum Ratio Requirement to Avoid Reserve Funding 2.00 2.00 2.00 2.00 2.00 2.00 2.00
(2) Adjusted/Restated for Adoption of MU 2016-1 Conclusion: Required Ratio is Satisfied
A-2. LEVERAGE COVENANT - Total Indebtedness-to-Capitalization (000s): A-4. DEBT COVERAGE COVENANT - Unrestricted Cash and Investments to MADS (000s):
Unaudited December 31, Unaudited December 31,
06/30/19 2018 2017 2016 2015 2014 2013 06/30/19 2018 2017 2016 2015 2014 2013
Long-Term Debt 195,637 198,445 209,572 220,733 178,316 189,863 207,412 Cash and Cash Equivalents 14,445 11,295 10,302 7,925 12,218 7,932 20,873
Current Portion of Long-Term Debt 12,822 10,572 10,563 10,429 11,950 11,746 11,317 Board-Designated Investments 334,222 297,636 316,765 281,881 249,171 290,044 274,457
208,459 209,017 220,135 231,162 190,266 201,609 218,729 348,667 308,931 327,067 289,806 261,389 297,976 295,330
Fund Balance (Net Assets) 369,971 338,699 337,844 295,715 294,173 296,813 301,300 Pro Forma Maximum Annual Debt Service Coverage 17,431 17,431 17,692 17,826 19,256 19,2% 19,2%
Total Capitalization 578,430 547,716 557,979 526,877 484,439 498,422 520,029 % of Cash and Investments to Debt Service 2000% 1772% 1849% 1626% 1357% 1544% 1531%
% Total Indebtedness to Capitalization 36.0% 38.2% 39.5% 43.9% 39.3% 40.4% 42.1% Required % of Cash and Investments to Debt Service 200% 200% 200% 200% 200% 200% 200%
Required % Total Indebtedness to Capitalization 65.0% 65.0% 65.0% 65.0% 65.0% 65.0% 65.0%
Conclusion: Required % is Satisfied
Conclusion: Required % is Satisfied
* June 30, 2016 results have been restated to reflect adoption of ASU 2016-1 on January 1, 2016.
Page 3
CONTINUING DISCLOSURE COMPLIANCE
ATTACHMENT 1
Unaudited Combined Financial Statements of
NCMC, Inc and North Colorado Medical Center
For the Quarter ended June 30, 2019
, I
NORTH COLORADO MEDICAL CENTER
Recombined Financial Statements
06/30/2019
BALANCE SHEET
Recombined Recombined
Assets i NCMC,Inc Banner/NCMC Total Eliminations 06/30/2019 12/31/2018
Current Assets
Cash&Cash Equivalents $ 14,208,000 $ 237,000 $ 14,445,000 - $ 14,445,000 $ 11,295,000
Assets Limited as to Use-Current 1,500,000 - 1,500,000 - 1,500,000 1,491,000
Accounts Receivable(Net) - 54,052,000 54,052,000 - 54,052,000 55,008,000
Due(To)From Others - 244,000 244,000 276,000 520,000 5,334,000
Due From Banner - - 0 - 0 0
Inventories - 10,220,000 10,220,000 - 10,220,000 10,550,000
Other Current Assets 834,000 , 822,000 1,656,000 (717,000) 939,000 2,021,000
Total Current Assets 16,542,000 ' 65,575,000 82,117,000 (441,000) 81,676,000 85,699,000
Assets Limited as to Use-Non-Current - - 0 - 0 0
Board Designated Investments 334,222,000 - 334,222,000 - 334,222,000 297,636,000
Real Estate Investments 11,900,000 - 11,900,000 - 11,900,000 11,951,000
Land,Building&Equipment,Net 180,262,000 1,584,000 181,846,000 - 181,846,000 188,812,000
Right of Use Assets,Net - 160,333,000 160,333,000 (155,353,000) 4,980,000 0
Other Assets 5,093,000 ' 90,000 5,183,000 - 5,183,000 5,296,000
Total Assets $ 548,019,000 $ 227,582,000 $ 775,601,000 $ (155,794,000) $ 619,807,000 $ 589,394,000
Liabilities and Net Assets
Current Liabilities
Current Maturities of Long Term Debt 10,953,000 36,073,000 $ 47,026,000 (34,204,000) $ 12,822,000 $ 10,572,000
Accounts Payable 241,000 3,885,000 4,126,000 - 4,126,000 4,944,000
Construction&Retainage Payable 1,310,000 - 1,310,000 - 1,310,000 426,000
Accrued Expenses - 15,149,000 15,149,000 - 15,149,000 15,371,000
Accrued Interest 809,000 - 809,000 - 809,000 814,000
Estimated Third Party Settlements - 119,000 119,000 - 119,000 268,000
Other Current Liabilities - 4,505,000 4,505,000 (376,000) 4,129,000 3,304,000
Total Current Liabilities 13,313,000 59,731,000 73,044,000 (34,580,000) 38,464,000 35,699,000
Accrued Pension Costs (128,000) - (128,000) - (128,000) (128,000)
Other Long Term Liability 9,714,000 6,149,000 15,863,000 - 15,863,000 16,679,000
Long Term Debt,less CMLTD 192,433,000 123,837,000 316,270,000 (120,633,000) 195,637,000 198,445,000
Total Liabilities 215,332,000 189,717,000 , 405,049,000 (155,213,000) 249,836,000 250,695,000
Net Assets
Restricted - 76,000 76,000 - 76,000 (14,000)
Unrestricted 332,687,000 , 37,789,000 370,476,000 (581,000) 369,895,000 338,713,000
Total Net Assets 332,687,000 , 37,865,000 370,552,000 (581,000) 369,971,000 338,699,000
Total Liabilities and Net Assets $ 548,019,000 $ 227,582,000 $ 775,601,000 $ (155,794,000) $ 619,807,000 $ 589,394,000
1
NORTH COLORADO MEDICAL CENTER
Recombined Financial Statements
6/30/2019
INCOME STATEMENT: Recombined Recombined
NCMC, Inc. Banner/NCMC Total Eliminations 06/30/2019 12/31/2018
Revenue :
Gross Patient Revenue - $241,982,000 $241,982,000 - $241,982,000 $485,889,000
Provision for Doubtful Accounts - (26,343,000) (26,343,000) - (26,343,000) (52, 106,000)
Net Patient Revenue - 215, 639,000 215,639,000 - 215,639,000 433, 783,000
Other Income 16,367,000 9,824,000 26, 191,000 ( 18,359,000) 7,832,000 16,927,000
Total Revenue 16,367,000 225,463,000 241,830,000 ( 18,359,000) 223,471,000 450, 710,000
Expense :
Interest Expense 3, 176,000 2, 146,000 5, 322,000 (2, 143,000) 3, 179,000 6,568,000
Depreciation Expense 11,836,000 14,820,000 26,656,000 (14,793,000) 11,863,000 24, 171,000
Amortization Expense 195,000 - 195,000 - 195,000 390,000
Bond Maintenance Fees 63,000 - 63,000 - 63,000 60,000
Administration Expense 179,000 179,000 - 179,000 297,000
Pension Cost - Periodic 456,000 - 456,000 - 456,000 26,000
Salaries and Benefits - 111, 256,000 111, 256,000 - 111,256,000 212,808,000
Purchased Services 5,837,000 5,837,000 - 5,837,000 11,605,000
Supplies - 32,940,000 32,940,000 - 32,940,000 62,661,000
Lease Payments - 847,000 847,000 (841,000) 6,000 0
Legal & Audit Expense 45,000 - 45,000 - 45,000 118,000
Education, Travel & Meetings 2,000 - 2,000 - 2,000 9,000
Grants 790,000 - 790,000 - 790,000 1,080,000
Environmental Remediation - - 0 - 0 0
Other Expense 153,C00 53,200,000 53,353,000 1, 323,000 54,676,000 101,937,000
Total Expense: 16,895,C00 221,046,000 237,941,000 ( 16,454,000) 221,487,000 421, 730,000
Operating Income (528,000) 4,417,000 3,889,000 ( 1,905,000) 1,984,000 28,980,000
Net Investment Income 35,458,000 - 35,458,000 - 35 ,458,000 ( 18,813,000)
Loss on Debt Refinancing - - 0 - 0 0
Revenues in Excess of Expenses 34,930,000 4,417,000 39,347,000 ( 1,905,000) 37,442,000 10, 167,000
Unrealized Gain ( Loss) - Swaps (636,000) - (636,000) - (636,000) 730,000
Pension Related Changes 456,000 - 456,000 - 456,000 735,000
Contributions for Long-Lived Assets 148,000 - 148,000 - 148,000 609,000
Non-Operating Income ( Expense) - (52,000) (52,000) - (52,000) 15,000
Adjustments to Restricted Equity - 90,000 90,000 - 90,000 (383,000)
Equity Transfers to Banner Health - 16,768,000 16,768,000 (22,944,000) (6, 176,000) ( 12,269,000)
Increase (Decrease) Net Assets 34,898,000 21,223,000 56, 121,000 (24,849,000) 31,272,000 (396,000)
Net Assets, Beginning 297, 790,030 16,641,000 314,431,000 24,268,000 338,699,000
Net Assets, Ending $ 332,688,000 $ 37,864,000 $ 370,552,000 $ (581,000) $ 369,971,000 $338,697,000
BOND COVENANT RATIOS (Annualized) :
06/30/2019 12/31/2018
Days Cash On-Hand 301 284
Debt-to-Total Capitalization 36.0% 38.2%
Debt Service Coverage 3. 26 4.09
Cash-to-MADS 2000% 1772%
2
i
1
CONTINUING DISCLOSURE COMPLIANCE
ATTACHMENT 2
Unaudited Financial Statements of NCMC, Inc
For the Quarter ended June 30, 2019
NCMC, INC
Balance Sheet
June 30, 2019 & 2018
Assets 2019 2018 Liabilities and Net Assets 2019 2018
Current Assets Current Liabilities
Cash and Cash Equivalents $ 14, 208, 534 $ 15, 478, 050 Current Maturities of Long Term Debt $ 10, 952, 931 $ 10, 660, 575
Assets Limited as to Use - Current 1, 499 , 598 1, 417, 052 Accounts Payable 240, 588 133 , 314
Accounts Receivable 833 , 745 479 , 291 Construction and Retainage Payable 1, 310, 286 761, 080
Swap Receivable - 811, 827 Accrued Pension Costs - Current - -
Prepaid - 100, 000 Accrued Interest 809, 359 877, 141
16, 541, 876 18, 286, 220 Due to BHS - HealthcareFacility 0 66
13, 313, 164 12,432, 175
Assets Limited as to Use - Non-Current - -
Obligations Under Interest Rate Swaps 4, 714, 442 3, 301 , 853
Investments
Marketable Securities 334, 221, 811 316, 724, 695 Long Term Debt, Less Current Maturities 192, 432, 684 203 , 939 , 881
Real Estate 11, 900, 511 12, 001, 631
Total Investments 346, 122, 322 328, 726, 325 Accrued Pension Costs - Long Term ( 128, 019 ) 580, 310
Property and Equipment Other Long-Term Liabilities 5 , 000, 000 5 , 000, 000
Land and Improvements 8, 980, 969 8, 980, 501 Total Liabilities 215, 332, 271 225, 254, 219
Buildings and Improvements 325 , 657, 185 319, 474, 568
Equipment 193,487, 925 187, 628, 843
528, 126, 079 516, 083, 913
Less Accumulated Depreciation ( 350, 747, 787 ) ( 327, 641, 263 )
177, 378, 292 188, 442, 651
Construction - in - Progress 2, 884, 080 1, 274, 534
180, 262, 372 189, 717, 185
Other Assets
Investments in Affiliates 3 , 670, 929 3 , 670, 929
Property Held for Charitable Purposes 1, 422, 107 1, 531, 500
Deferred Financing Costs , Net Amorti ; - -
Other Assets - -
5,093,036 5, 202,429 Net Assets - Unrestricted 332, 687, 335 316, 677, 940
Total Assets $ 548,019, 606 $ 541, 932, 159 Total Liabilities and Net Assets $ 548,019, 606 $ 541, 932, 159
NCMC, Inc
Statement of Operations & Change in Net Assets
Periods Ended June 30, 2019 & 2018
Month Month Budget Variance June YTD YTD Budget Variance June
Actual Budget Pos/( Neg) 2018 Actual Budget Pos/( Neg) 2018
Revenue:
Basic Rent ( Depreciation ) $ 1,945,862 $ 1, 937, 820 $ 8,042 $ 2,001, 850 $ 11, 675, 174 $ 11, 626,920 $ 48, 254 $ 12, 011, 102
Additional Rent ( ROA) 1, 114, 166 1,021,324 92, 842 1, 141, 557 6, 684,094 6, 127,944 556, 150 6, 922, 618
Section 6.03 Accrued Rent - - - - - - - ( 1 )
Deferred Rent - - - - - - - -
Charity Care Subsidy ( 1, 250,000) ( 1, 250,000) - ( 1, 250,000) ( 2,500,000) ( 2, 500,000) - ( 2, 500,000)
Net Banner Rent Income 1,810,029 1, 709, 144 100,885 1,893,407 15, 859, 268 15, 254, 864 604,404 16,433, 719
Other Rental Income 18, 696 14, 167 4,529 16,013 100,028 84,998 15, 030 151, 650
Other Income - 542 ( 542 ) 5,088 408,076 3, 248 404,828 12, 362
Total Operating Revenue $ 1,828,724 $ 1,723,853 $ 104,871 $ 1,914,508 $ 16,367,372 $ 15,343, 110 $ 1,024,262 $ 16,597, 732
Expense:
Interest Expense $ 525,951 $ 525, 952 1 $ 548,949 $ 3, 175, 508 $ 3, 175, 912 404 $ 3,310,426
Depreciation Expense 1,939, 122 1, 996, 714 57, 592 1, 993,948 11, 836,042 11, 980, 284 144, 242 12,085, 979
Amortization Expense 32, 536 32, 536 0 32, 536 195, 215 195, 213 ( 2 ) 195, 215
Bond Maintenance Fees 15, 000 8,000 ( 7,000) 11,486 63,002 48, 000 ( 15,002 ) 31, 619
Administration Expense 34, 826 20, 001 ( 14,825 ) 25, 559 179,461 173 , 872 ( 5,589) 163,986
Pension Cost - Periodic 76, 000 76, 000 - 76,000 456,000 456,000 - 456,000
Consulting & Professional Fees 8, 293 7, 337 ( 956 ) 11, 965 45, 374 44, 022 ( 1,352 ) 46, 019
Education, Travel & Meetings 1, 280 - ( 1, 280) - 1, 619 10,000 8,381 8, 692
Grants - - - - 790,000 790,000 - 540,000
Rental Property Expenses (4, 302 ) 16, 667 20, 969 ( 20, 205 ) 150, 951 99, 998 (50,953 ) 77, 430
Environmental Remediation Expense - - - - - - - -
Other Expense 429 1,063 634 - 2, 343 6, 378 4,035 1, 596
Total Operating Expense $ 2, 629, 135 $ 2,684,270 $ 55, 135 $ 2,680,237 $ 16,895, 513 $ 16,979, 679 $ 84, 166 $ 16,916,961
Operating Income $ (800,410) $ (960,417) $ 160,007 $ (765,729) $ (528, 141) $ (1,636,569) $ 1, 108,428 $ (319,229)
Interest/Dividend Income - Portfolio 795, 968 586, 370 209,598 688,492 4, 295, 846 4,036,025 259,821 3,587,929
Interest/Dividend Income - Other 12, 554 8, 350 4, 204 11, 563 75, 073 50, 100 24, 973 34, 803
Realized Gain ( Loss) on Investments 8, 346, 824 - 8, 346,824 ( 108,817 ) 8, 254, 202 - 8, 254, 202 5,444,903
Unrealized Gain ( Loss) On Investments 4,916, 253 - 4,916, 253 ( 274, 726) 24, 753, 601 - 24, 753, 601 ( 8, 390, 100)
Realized Gain ( Loss) on Swaps ( 212 ,086) - ( 212,086) 64, 581 ( 1, 202, 670) - ( 1, 202, 670) 515, 781
Realized Gain ( Loss) on Refinancing - - - - - - - -
Investment Advisor Fees ( 81, 292 ) ( 110,417 ) 29, 125 ( 75, 258) ( 717,958) ( 662,498) ( 55,460) ( 680,588)
Investment Income 13, 778, 220 484, 303 13, 293, 917 305,834 35, 458,093 3,423, 627 32, 034,466 512, 728
Revenue in Excess of Expenses $ 12,977, 810 $ (476, 114) $ 13,453,924 $ (459,895) $ 34,929,952 $ 1, 787,058 $ 33, 142,894 $ 193,499
Increase ( Decrease) FMV of Int Rate Swaps ( 163, 119) - ( 163, 119) 174, 127 ( 636,093 ) ( 636,093 ) 925, 945
Pension Costs - Non - Periodic 76,000 - 76,000 76,000 456,000 456,000 456,000
Contributions for Long- Lived Assets 51, 414 - 51,414 61, 787 147,996 - 147, 996 321 , 319
Increase (Decrease) Net Assets $ 12,942, 105 $ (476, 114) $ 13,418, 219 $ ( 147,981) $ 34,897, 854 $ 1,787,058 $ 33, 110, 796 $ 1,896,763
CONTINUING DISCLOSURE COMPLIANCE
ATTACHMENT 3
North Colorado Medical Center
Statement of Operations
For the Quarter ended June 30, 2019
Company Group Greeley Community Pane: 1
Run Dates 07/09/19 Consolidated Income Statement Report: GLCCOIS
Run Time; 04:33 June 2019
--------------------- Month-To-Date -------------------------- -___-___------------.. Year-To-Date ----------------_-_---
ACTUAL BUDGET VARIANCE PRIOR YEAR ACTUAL BUDGET VARIANCE PRIOR YEAR
GROSS HEALTHCARE REVENUE
Hospital Inpatient 45,786,380 46,090,274 (303,894) 41,574,491 292,316,053 283,428,403 8,887,650 273,382,719
Hospital Outpatient 50,025,177 50,854,594 (829,417) 48,104,495 304,464,132 306,860,474 (2,396,342) 294,566,833
Clinic 8,107,756 8,483,124 (375,368) 7,851,601 51,300,645 51,733,173 (432,528) 54,523,967
Other Healthcare Revenue 457,461 433,461 24,000 296,257 2,745,569 2,600,769 144,800 2,720,882
TOTAL GROSS HEALTHCARE REV 104,376,774 105,861,453 (1,484,679) 97,826,844 650,826,398 644,622,819 6,203,579 625,194,401
REDUCTIONS OF REVENUE
Hospital Inpatient 29,907,632 30,761,043 853,411 26,651,998 193,031,786 188,798,276 (4,233,510) 180,758,197
Hospital Outpatient 36,530,396 35,958,682 (571,714) 33,849,156 215,400,888 219,064,013 3,663,125 206,979,482
Clinic 4,352,796 4,104,018 (248,778) 4,090,913 26,754,838 25,080,961 (1,673,877) 28,204,375
Other Healthcare Reductions 0 0 0 0 0 0 0 0
!'' -' -
TOTAL REDUCTIONS OF REVENUE 70,790,824 70,823,743 32,920 64,592,066 435,187,512 132,943,250 (2,244,262) 415,942,055
NET HEALTHCARE REVENUE 33,585,951 35,037,710 (1,451,759) 33,234,778 215,638,886 211,679,570 3,959,317 209,252,346
Medical Insurance Premiums 0 0 0 0 0 0 0 0
Other Operating Revenue 1,746,214 1,682,317 63,897 1,576,034 9,824,567 10,073,218 (248,651) 10,009,905
TOTAL OPERATING REVENUE 35,332,165 36,720,027 (1,387,862) 34,810,813 225,463,454 221,752,788 3,710,666 219,262,251
EXPENSES
Salaries 13,921,650 13,341,190 (580,460) 12,546,914 83,765,974 80,802,979 (2,962,995) 80,956,144
Contract Labor 284,919 51,151 (233,768) 78,308 1,599,183 306,018 (1,293,165) 650,248
Benefits 2,082,243 2,697,698 615,455 2,017,768 14,570,125 16,922,313 2,352,188 16,512,604
Physician & Prof. Fees 1,977,222 1,470,705 (506,517) 1,645,627 11,321,446 9,362,073 ( ,959,373) 8,596,729
Supplies 5,670,168 5,328,191 (341,977) 5,483,110 32,939,595 31,763,842 (1,175,753) 30,953,258
Purchased Services 827,228 953,430 126,202 920,862 5,836,813 5,608,028 (228,785) 5,640,522
Medical Claims Expense 0 0 0 0 0 0 0 0
Other Operating Expenses 4,410,001 4,741,817 331,816 4,276,541 28,597,569 28,859,430 261,861 26,164,057
TOTAL CONTROLLABLE EXPENSES 29,173,432 28,584,184 (589,249) 26,969,130 178,630,705 173,624,683 (5,006,022) 169,473,563
Depreciation & Amortization 2,433,864 2,203,135 (230,729) 2,488,615 14,819,855 12,958,398 (1,861,457) 13,659,856
Facility Leases 161,435 156,398 (5,037) 68,534 846,568 938,385 9'.,817 566,376
Interest 346,245 1,060,657 714,412 1,134,542 2,146,541 6,363,693 4,217,152 6,339,576
TOTAL EXPENSES 32,114,977 32,004,373 (110,603) 30,660,821 196,443,669 193,885,159 (2,558,510) 190,039,371
CONTRIBUTION MARGIN 3,217,189 4,715,654 (1,498,465) 4,149,992 29,019,785 27,867,629 1,152,155 29,222,880
Allocations 4,100,384 4,100,384 0 4,082,821 24,602,2C5 24,602,305 0 23,918,880
NET INCOME FROM OPERATIONS (883,196) 615,270 (1,498.465) 67,171 4,417,480 3,265,324 1.152,156 5,303,999
Investment Income-Realized 0 C 0 0 0 0 0 0
Investment Income-Unrealized 0 0 0 0 0 0 0 0
Int Rate Swaps Unrlzd G/L 0 0 0 0 0 0 0 0
Other Non-Operating Inc(Exp) (51,949) 0 (51,949) 0 (51,949) 0 (51,949) 0
NET INCOME (935,145) 615,270 (1,550,415) 67,171 4,365,531 3,265 324 1,100,206 5,303,999
====...
MEMO: PT BAD DEBT & CHARITY
Patient Bad Debt 3,227,260 1,421,326 (1,805,934) 2,529,278 11,593,752 8,659,472 (2,934,280) 8,320,052
Charity 2,892,858 3,178,425 285,567 1,843,927 14,749,538 19,350,895 4,601,357 18,621,842
Company Group Greeley Community Page: 1
Run Date: 07/09/19 Detailed Balance Sheet Report: GLCCGBS2
Run Time: 04:33 06/30/19
Current Year Prior Year
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents 236,699 704,901
Short Term Investments 0 0
Security Lending Collateral 0 0
C/P Assets Whose Use is Ltd 0 0
PATIENT RECEIVABLES:
Gross Patient Receivables 154,956,180 147,997,943
Bad Debt Allowance (18,817,248) (13,229,068)
Contractual & Reg Allowance (82,087,431) (83,079,183)
NET PATIENT RECEIVABLES 54,051,502 51,689,691
OTHER RECEIVABLES:
Other NonPatient Receivables 231,809 1,260,411
Due From Affiliates 11,639 3,077
TOTAL OTHER RECEIVABLES 243,448 1,263,488
Inventories 10,220,121 10,131,166
Securities Under Repurch Prgm 0 0
Intercompany Receivables (392,974) (272,228)
Other Current Assets 1,215,203 1,889,132
TOTAL CURRENT ASSETS 65,573,998 65,406,151
NON-CURRENT ASSETS:
ASSETS WHOSE USE IS LIMITED:
Indenture 0 0
Self Insurance 0 0
Board Designated 0 0
Funded Reserves 0 0
Other Limited Use Assets 0 0
TOTAL LIMITED USE ASSETS 0 0
Property,Plant & Equip S Cost 2,424,573 340,143,454
Less: Accumulated Depreciatn (840,734) (149,569,940)
PROPERTY, PLANT & EQUIP, NET 1,583,838 190,573,515
Right of Use Assets 175,425,943 0
Less: Amtzn of RCU Assets (15,092,876) 0
RIGHT OF USE ASSETS, NET 160,333,067 0
Long Term Investments 0 0
Other Investments 0 0
Assets Held for Sale 0 0
Long Term Receivables 0 0
Restricted Assets (13,690) 568,433
Invstmnts/Advances to Affil 0 0
Company Group Greeley Community Page: 2
Run Date: 07/09/19 Detailed Balance Sheet Report: GLCCG952
Run Time: 04:33 06/30/19
Current Year Prior Year
Deferred Financing Charges 0 0
Other Deferred Charges 104,444 242,500
Intangibles 0 0
Other Non-Current Assets 0 0
TOTAL ASSETS 227,581,658 256,790,599
Company Group Greeley Community Page: 3
Run Data: 07/09/19 Detailed Balance Sheet Report: GLCCGBS2
Run Time: 04:33 06/30/19
Current Year Prior Year
----LIABILITIES AND EQUITY----
LIABILITIES:
CURRENT LIABILITIES:
CURRENT MATURITIES OF LTD:
Bonds 0 0
Leases 0 0
Other 0 0
TOTAL CURR MATURITIES OF LTD 0 0
Cap Fac Lease Oblig, Curr 36,072,697 22,729,922
Accounts Payable 3,884,584 3,517,170
Securities Lending Payable 0 0
ACCRUED SALARY AND BENEFITS:
Compensation 15,012,010 13,612,981
Taxes (18,241) 1,017
Benefits 154,733 128,705
Payroll Deductions 825 4,328
TOTAL ACCRD SALARY & BENEFIT 15,149,328 13,747,032
Securities Repurchase Oblig 0 0
Estd 3rd Prty Payor Settimnt 119,300 (105,208)
Reserves for & Claims Payble 0 0
Other Curr Liab & Accrd Exps 4,505,495 5,527,299
TOTAL CURRENT LIABILITIES 59,731,404 45,416,214
LONG TERM LIABILITIES:
LTD, NET OF CURR MATURITIES
Bonds 0 0
Leases 0 0
Other 0 0
TOTAL LTD, NET OF CURR MATUR 0 0
Cap Fac Lease Obligation, LT 123,836,987 188,967,170
Eetd 3rd PPS, Net of CP 6,075,775 11,732,157
Estd Self Insurance Liab 0 0
Other NonCurrent Liabilities 72,784 68,859
TOTAL LONG TERM LIABILITIES 129,985,546 200,768,186
MINORITY INTEREST 0 0
SUSPENSE 0 0
TOTAL LIABILITIES 189,716,950 246,184,400
Compan,' Group Greeley Community Page: 4
Run Daze: 01/09/19 Detailed Balance Sheet Report: GLCCGBS2
Run Time: 04:33 06/30/19
Current Year Prior Year
EQUITY: ---
UNRESTRICTED NET ASSETS:
Donated Fixed Assets 0 41,104
Capital Stock & APIC 0 0
Unrealized Gains/cLosses› 0 151,490
Unrestricted Equity 33,423,271 4,844,252
YTD Net Income ‹Loss› 4,365,531 5,303,999
TOT UNRESTRICTED NET ASSETS 37,788,802 10,340,845
TEMP RESTRICTED NET ASSETS:
Temp Restricted Net Assets 75,907 265,353
Unrealized Gains/Losses 0 0
TOTAL TEMP REST NET ASSETS 75,907 265,353
PERM RESTRICTED NET ASSETS:
Perm Restricted Net Assets 0 0
TOTAL PERM REST NET ASSETS 0 0
TOTAL EQUITY 37,864,708 10,606,199
TOTAL LIABILITIES & EQUITY 227,581,658 256,790,599
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