We continue our monthly series focused on how our members are tackling their daily challenges through innovative solutions with Towner County Medical Center, illustrating how they worked with Amerinet and other partners to implement a financial turnaround.
Issue
Towner County Medical Center (TCMC) was on the path to becoming one of the casualties we hear about in rural healthcare today. The fiscal year ended in June 2013 with a -13.1 percent margin. The facility had a maxed out credit line and an extended accounts payable balance of more than $1.3 million. It was apparent that vendors were taking advantage of the facility, and the supply chain needed expertise to help improve financial outcomes.
Solution
An independent supply chain consultant was hired to help with training and expertise in the supply chain and TCMC partnered closely with their Amerinet representatives to review cost savings opportunities. The consultant and Amerinet representatives reviewed all aspects of operations. Methods used included:
- An independent analysis from the consultant.
- An Amerinet Savings Roadmap.
- Amerinet assistance with software ensuring proper purchasing.
Outcome
The turnaround at TCMC in just one year was substantial. A -13.1 percent margin from FY 2013 was turned into a positive 1.8 percent margin for FY 2014. Net revenue increased 11.1 percent and with the help of Amerinet, TCMC was able to add all of the revenue and decrease expenses by 1 percent over the prior year. The credit line has been cut almost in half and TCMC’s accounts payable balance has decreased to below $500,000.
About Towner County Medical Center
Towner County Medical Center consists of a 20-bed critical access hospital, a 37-bed long-term care facility, a rural health clinic, a provider-based clinic, assisted and independent senior living facilities.
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