Over the past year, Cullman Regional Medical Center’s operating profit has jumped by $4.1 million (92 percent), in-patient admissions and out-patient visits have increased and its ambulance service is operating in the black for the first time in years.

That’s some of the good news reported in the Healthcare Authority of Cullman County’s financial audit for 2014 and 2015 released by the Alabama Department of Examiners of Public Accounts last week. The Authority controls operations of the 145-bed hospital on Alabama Highway 157 and appoints the voting majority of the CRMC Board.

Changes in management and philosophy were cited as factors driving overall improvement in all financial categories. The hospital launched a new marketing campaign to highlights its available services, and revenue cycle improvement at Cullman EMS led to an operating gain at the ambulance service for the first time in years, according to the report.

“CRMC’s strong financial performance was driven by a substantial increase in volume — both inpatient and outpatient, as well as improvements in business efficiency,” said James Clements, CRMC CEO. “We are also happy to report that the hospital received an upgrade by bond rating agency Fitch, which validates the improved financial performance of the medical center. The future of CRMC looks bright, and we hope to make an exciting announcement at this year’s State of the Hospital Elected Officials & Business Leaders Luncheon on January 27.”

Some of the hospital’s financial gains include:

* All operating, liquidity, and debt ratios were improved from 2014 to 2015.

* Inpatient admissions increased 7 percent and outpatient visits increased by 2.2 percent.

* Net patient service revenue increased $4.2 million or 4.5 percent.

* Salaries and benefits expense dropped from 50 percent of net patient service revenue to 45 percent.

* As of June 30, 2015, the hospital had 210 days of operating funds on hand (reserves), compared to 174 for 2014. Cash and cash equivalents increased $8.1 million during 2015.

* At the end of 2015, the Authority had approximately $42 million invested in capital assets, including purchases of a new nurse call system and additional lab equipment.

“CRMC has made remarkable strides throughout the past year, and we are excited about the future,” said Judy Butler-Patterson, Healthcare Authority / CRMC Board Chairman. “Some of the greatest accomplishments include not only the hospital’s improved financial performance but also its recognition by the Joint Commission as a Top Performing Quality hospital for the second year in a row.”

Revenue from Medicare and Medicaid accounted for approximately 40 percent and 10 percent, respectively, of the Authority’s gross patient revenue for 2015 and 40 percent and 9 percent in 2014. Laws and regulations governing Medicare and Medicaid are extremely complex and subject to interpretation, and that means those figures could likely change in the near future.

The financial improvements come at a time when smaller community hospitals are struggling to stay afloat. Over the past six years, five rural hospitals across Alabama have closed, according to the Alabama Rural Health Association.

CRMC is the only acute care facility in Cullman County and receiving the designation of “Sole Community Hospital” in 2012 has had a positive effect on the financial position of the hospital, according to its financial report.

* Tiffeny Owens can be reached by email at towens@cullmantimes.com or by phone at 256-734-2131.