Tom Newman, a principal with Baker Newman & Noyes certified public accountants in Portland, told the HAD 4 Board of Directors on Jan. 23 that Mayo finished its most recent year, ending Sept. 30, 2001, with "a very solid balance sheet."
Newman said consolidated total revenues for HAD 4 were $24,252,374, including a 12% increase in net patient service revenue. Total expenses were $22,834,628, leaving HAD 4 with operating income of $1,417,746. That is a "very strong increase" over the 2000 operating income total of $605,675, Newman said.
After factoring in nonoperating income, HAD 4 finished 2001 with net income of $1,216,354, a 33% increase over 2000. Net income is reinvested back into the nonprofit hospital to fund depreciation and acquire new equipment.
Mayo fared very well in 2001 in comparison to Maine's other hospitals, and especially when compared with the state's 17 "small" hospitals, those with 50 beds or fewer. "Mayo is one of the strongest in that small hospital group, with an operating margin well above the average," said Newman.
He said Mayo had an operating margin -- the proportion of operating revenue retained as income -- above 8% in 2001. Other small Maine hospitals have posted average operating margins of 2-3% in recent years.
Mayo, which accepts all patients regardless of their ability to pay, provided $467,556 in charity care last year and made provision for covering another $1,176,769 in doubtful accounts. HAD 4, which operates Mayo Regional Hospital in Dover-Foxcroft and affiliated physician offices in Corinna, Dexter, Dover-Foxcroft, Guilford and Milo, is a quasi-governmental entity established by the Maine Legislature to provide health care to the towns in the district's service area. HAD 4 member communities include Abbot, Atkinson, Bradford, Cambridge, Dexter, Dover-Foxcroft, Guilford, Monson, Parkman, Sangerville, Sebec and Willimantic.
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