MOSES LAKE — Even with the additional expense of construction, increased staff costs and additional bad debt, Samaritan Healthcare is in reasonable financial shape.  

Samaritan generated a profit of about $1.15 million in June, and for the first six months of 2024, Samaritan was $1.67 million in the black, according to hospital district staff. 

Chief Administrative Officer Alex Town said finances can change quickly, but the hospital’s financial picture is relatively bright.  

“Fortunately, where we are today, we’re sitting really good," Town said.  

Inpatient revenue is below the budget projections for the first six months of the year, Town said. More patients are being admitted to the hospital than projected, he said, and there are more obstetrics cases than anticipated. However surgical cases are below the budget projections. 

Surgical cases were above the budget projection in June, he said, due to an increase in orthopedic surgeries.  

Samaritan surgeons treated fewer patients in 2024 than in 2023 through the first six months; the hospital had 2,849 in 2023, compared to 2,764 in 2024.  

“That’s an area I really want to dive into deeper (to) find out what’s happening there,” Town said. 

More orthopedic surgeries are being performed than anticipated, but general surgery cases are lagging behind, he said. Surgery cases were an important component of the feasibility studies hospital officials conducted as part of the application process for a USDA loan for the new Samaritan Hospital currently under construction. While surgery cases are lagging behind, other hospital services are serving more patients than anticipated, he said.  

Samaritan’s imaging departments and lab services are doing more business than projected, Town said. 

Bad debt and charity care expenses are above budget projections. For the year to date, Samaritan had about $4.43 million in bad debt and charity care. 

“Typically, you have those months where you see a bump, then maybe it’ll go down, but (the last) four months have been above what we had budgeted,” Town said. “And what’s driving it mainly is bad debt. Charity care is up a little bit, but bad debt is up a lot.” 

Expenses are running slightly below budget projections, but not a lot. 

“What’s driving this is temporary manpower,” Town said.  

For the first six months of the year, hospital officials have spent about $6.05 million for temporary manpower. Samaritan has had to bring in some temporary doctors and nurses to plug staffing gaps, he said. The biggest need has been nurses for obstetrics, medical and surgical patients and emergency room staff.  

The hospital has hired permanent employees, especially nurses, he said, which theoretically will cut that expense. But Samaritan, and the industry in general, expect more nurses to retire, he said.  

Chief Executive Officer Theresa Sullivan said that’s a trend throughout the country. 

“That’s the biggest concern, you’re getting more and more people retiring, and not enough people (entering the profession),” Sullivan said. “In addition, healthcare demand is going up.” 

“(Temporary manpower) is the one expense that worries me the most, and I’m hoping in the next few years we can bring that cost down,” Town said.  

Cheryl Schweizer can be reached via email at [email protected].