CRMC Audit Comes Back Clean

Cookeville Regional’s annual audit came back with a clean opinion and reported a net income of $10.5 million.

Chief Financial Officer Tommye Rena Wells told board members Tuesday the center brought in that revenue on an operating budget of $2.9 million. Wells said they were able to grow patient revenue last fiscal year by increasing the number of patients coming to the hospital and decreasing how long patients stay there.

“We’re working very hard as a facility to decrease our average length of stay,” Wells said. “And as you decrease your average length of stay then that’s going to produce more to your bottom line. And we’re also working still yet with our supply contracts to make sure that we’re getting the best rate possible, so we’re continuing those efforts.”

Wells said the audit reflects an important turnaround year as the hospital suffered a $32 million hit the year before when many retired city employees were placed on the hospital’s roster.

Wells said she is hopeful that the hospital will continue to see this financial success in the current fiscal year.

“This year we have budgeted to make $7 million,” Wells said. “And I know that that’s a little less than the $10 million that we achieved last year, however during this fiscal year we do have several construction projects that are going on which will impact that for just a little bit.”

Wells said that any growth seen in the hospital’s revenue goes directly back into its employees or equipment.

“Everything that we generate goes into making this hospital better for this community,” Wells said.

Wells said they are behind budget for the current fiscal year but she is confident their numbers will turn around and meet their projections by the end of the year.

“This is kind of a low season where volumes decline with fall break and things like that,” Wells said. “But I have full faith that we will recover and meet our budget this year.”