At tonight’s meeting of the Alameda Health Care District Board of Directors, the Board will hear a financial report showing that the hospital lost $309,000 in July, compared to an expected loss of only $172,000. The management report also reveals an error in the fiscal year 2013 operating budget. The “temporary agency expense” category of expenditures was understated by an estimated $480,000 for the fiscal year.
The Hospital expects the understatement to be offset somewhat by higher Medi-Cal reimbursement rates that went into effect on August 1st.
The loss for July is attributed to lower revenue for the month.
The Hospital continues to operate in violation of loan covenants with the Bank of Alameda, however, the bank’s loan committee has waived the covenants until December 31, 2012. The Hospital needs to get its current ratio above 1.0 by then to be in compliance. The current ratio is a measure of liquidity, and reports the number of dollars in current assets per liabilities. A ratio below 1.0 means the Hospital has less in current assets than owed in liabilities.
Alameda Hospital has just $3 million in cash and cash equivalents on-hand.