Trios Health finances improving, CFO says

After a high-profile period of struggle, Trios Health’s finances continue to improve, the chief financial officer said.

August was a slow month, which isn’t unusual in the summer, but September “was a very good month for us,” Tony Sudduth said, adding that “October is looking good too.”

He recently presented a financial update to the board of commissioners and also discussed the numbers in an interview with the Herald.

The hospital district’s net income for September was $3.37 million. In January, that figure was $1.8 million in the hole.

The net operating income for the year to date is $7.2 million, compared with a loss of $4.2 million at the same point last year.

The district’s accounts payable balance — which is the amount owed for costs such as utilities, supplies and services — has fluctuated since January but dropped over all.

“We ended September at about $11 million in accounts payable. That’s pretty close to where I want it to be. At one point, we were close to $20 million,” Sudduth said.

The district also is set to receive more than $4 million from the state to help offset low reimbursements for Medicare and Medicaid patients.

However, some officials remain concerned about the financial position.

Rick Reil, a longtime board member who advocated for outside help to turn around the district’s financial position, said there are “lots of ways to read the finances,” noting the cash on hand remains low. The district has brought in $18 million in the past several months by borrowing and selling assets, and that’s not sustainable, he said.

“We can’t keep doing what we’re doing,” Reil told the Herald.

The finances — and officials’ approach to them — are a key issue in the Nov. 3 board election.

Two commissioner positions are on the ballot, and candidates have fallen into two camps. Pos. 4 incumbent Victor V. Johnson and Pos. 7 candidate Mike McWhorter have said the finances are improving and the district is on the right track, and Pos. 4 challenger Don Campbell and Pos. 7 candidate Cedro Rodriguez have said the finances are shaky and change is needed.

The Trios system includes two hospitals and a network of care centers and services.

A cash crunch following the opening last year of the Trios Southridge Hospital made headlines and prompted layoffs.

Sudduth said the district is working on creating a bigger cash cushion. Its operating margin is good and patient volume is growing.

“We recognized and made corrections and we’ve had (many) strong months” in a row, he said. “That’s a great sign.”

This story was originally published November 1, 2015 at 9:26 PM with the headline "Trios Health finances improving, CFO says."