Meadville Medical Center had an operating profit of just under 1.5 percent for fiscal year 2006.

The fiscal year runs from July 1 through June 30 the following year.

Statistics from the Pennsylvania Health Care Cost Containment Council’s annual report show Meadville Medical Center had net patient revenue totaling $90 million for 2006 — up $8 million from fiscal year 2005 — while its total operating expenses also were about $90 million.

The hospital had an operating profit of 1.43 percent in fiscal year 2006. Its three-year average increase in net patient revenue totaled 4.76 percent.

Operating profit is the ratio by which total operating revenue exceeds expenses.

“We’re very pleased about it,” Duane Koller, the hospital’s director of marketing, said of the hospital posting a slight profit for 2006.

However, as a nonprofit community hospital, by law it must reinvest that money in equipment and buildings or new services for patients.

“As times were tight, we were not able to replace things,” Koller said.

“When we make a profit it allows us to reinvest in new services and programs,” he said. “As things have improved financially, we’re able to add new and improved services like our new Liberty Street surgical center and our cancer treatment center (now under construction).”

Koller said one of the continued impacts on the hospital the past few years has been lower reimbursement for Medical Assistance patients. Medical Assistance made up 13 percent of its net patient revenue in 2006.

Medical Assistance is a state medical care plan provided to public assistance recipients. However, it’s federally funded and there have been cutbacks in federal funding to the program.

“Medical Assistance pays only about 70 percent of our cost to care for the patient,” said Koller. “We’ve worked hard to keep our costs down and in line.”

Of MMC’s $90 million in revenue, 37.49 percent came from Medicare and 13 percent from Medical Assistance payments. Its percentage of uncompensated care was 2.02 percent.

Though Meadville’s operating profit only was 1.43 percent, its total margin was 3.68 percent.

Total margin is the ratio by which revenue exceeds expenses divided by total revenue. Total revenue also includes income from operations of specialty units such as psychiatric, rehabilitation, home health and others, and investments.

“We had some money in the bank to keep us whole during the lean times,” said Koller.

While Meadville Medical Center’s operating margin was only 1.43 percent, it did rank 10th out of the 23 hospitals in the northwestern Pennsylvania region.

Titusville Area Hospital ranked last with a negative 9.44 percent operating margin and its total operating margin for the year was negative 7.98 percent.

Hamot Medical Center in Erie had the highest operating margin for fiscal year 2006 at 5.81 percent. The average for the region was 1.46 percent.

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