For Profit Hospital Makes Profit Despite Below Average Occupancy

The Division of Policy, Planning and Assessment Office of Health System has released their Hospital Summary Report for 2012. There are 171 licensed hospitals in the State of Tennessee and they have 17,222 staffed beds, as of the latest report. The State percentage of occupancy is 61.5%, with around 10,587 beds filled daily. Total gross receipts of all hospitals are $55,855,614,148 and net revenue is $ 16,732,682,603.

While the occupancy numbers are good across the State, Tennova Hospital located in Jefferson County has a lagging occupancy rate that is around 20% lower than the State average. With 58 staffed beds available, the local hospital is filling an average of 41.3% of those and has about 24 beds filled daily. Tennova Cocke County has fewer staffed beds, at 36 available, but enjoys a strong occupancy rate of 57.7 %, with a 3 day average stay and a 21 daily occupancy rate. The two hospitals in Hamblen County, Lakeway Regional and Morristown Hamblen Health, have a more than 10 point spread in the percentage of beds that they fill annually. Lakeway enjoys a 59.1% occupancy rate and Morristown Hamblen Health has a 47.3% rate, with the former having 65 staffed beds and the latter reporting 147 staffed beds. Sevier County’s LeConte Medical Center has around 69 staffed beds with an occupancy rate of a slightly more than 52% and fills an average of 36 beds daily. Of the hospitals listed in the local region, Tennova Jefferson County may be behind on occupancy but it is one of the few that is showing a profit for the 2012 year. Net Patient Revenue came in at $45,081,664 plus Other Revenue of $623,991 brought in combined revenue of $45,705,655. Total expenses for the year were $41,526,110, giving a profit of $4.1 million dollars. Tennova Cocke County had a Net Revenue of $39,895,790 and Expenditures of $31,682,570 leaving a profit of around $8.2 million. Tennova in Campbell County also brought in a profit of around $6 million, making the Tennova brand the most successful in the local region. Both Hamblen County hospitals had expenditures that exceeded revenues, according to information provided in the report, as did Sevier County’s LeConte Medical.

Numbers are not yet available for the 2013 year. Of the reporting hospitals, 119 are General Medical or Surgical and 78 are investor owned for profit hospitals.

Source: K. Depew, News Director