February 14, 2019
Fauquier Hospital’s profit tripled in four years
In its first four years as a for-profit institution, Fauquier Hospital dramatically improved its financial performance.
Fauquier Hospital in 2017
• Beds: 97
• Patient days: 18,101
• Admissions: 5,130
• Full-time employees: 631
• Net revenue per admission: $10,113
• Total revenue: $131.9 million
• Profit: $23.7 million
• Margin: 17.9 percent
Source: Virginia Health Information 2018 Industry Report
That continued in 2017, when the hospital posted a record $23.7-million profit, according to an industry report issued Feb. 5.
Fauquier’s operating profit margin of 17.9 percent ranked ninth among 105 hospitals in Virginia.
One-third of the state’s hospitals lost money in 2017. Those in rural areas particularly struggled, according to Richmond-based Virginia Health Information’s report.
Operating margins at 55 Virginia hospitals declined between 2016 and ’17.
Fauquier Hospital’s profit margin increased from 15.5 percent in 2016, when it netted $22.7 million.
Publicly-traded LifePoint Health bought 80 percent of the local, not-for-profit hospital and affiliated businesses late in 2013. That year, Fauquier Hospital posted $7.9-million profit and an operating margin of 2.8 percent.
A year later, the profit more than doubled to $19.4 million.
Four years after the sale, Fauquier Hospital’s profit tripled, even as revenue declined slightly.
The hospital’s staff also declined by 18 percent during the same period. It reported 631 full-time equivalent employees in 2017 versus 771 in 2013.
LifePoint last May paid the PATH Foundation, endowed in 2013 with the sale’s proceeds, $47 million for the final 20 percent of Fauquier Health.
Also last year, private equity firm Apollo Global Management acquired LifePoint, based in suburban Nashville, for $5.6 billion. No longer publicly-traded, LifePoint has 89 hospitals, mostly in rural areas of 30 states, and operates as a wholly-owned unit of New York-based investment firm.
LifePoint’s scale has allowed the hospital to buy equipment, supplies and services less expensively, Fauquier Health officials have explained in recent years. The merger also eliminated Fauquier Health’s multimillion-dollar debt for major renovations and expansions of the hospital.
As an example of its financial resources, the company will incur no debt for a $12.5-million cancer treatment center under construction on the hospital campus.
Fauquier Hospital also provided more than $13 million in charity care and reported more than $11 in bad debt in 2017. The hospital that year received patient satisfaction scores in line with state and national averages, acceding to the VHI report.
Fauquier started as a not-for-profit hospital in the 1950s.
Virginia Health Information’s annual industry report provides detailed information on efficiency and productivity for every hospital and nursing home in the state. The nonprofit organization produces the data to help large employers and insurance companies negotiate contracts with healthcare providers
Region’s hospital profits
Ranked by their 2017 operating margin percentages, all these selected hospitals, except Fauquier and Reston, are not-for-profit:
20.6 percent — Inova Fair Oaks, $63.9 million
17.9 percent — Fauquier Hospital, $23.7 million
17.7 percent — Reston Hospital Center, $58.7 million
15 percent — Inova Loudoun, $66.2 million
10.4 percent — Novant/U.Va. Haymarket Medical Center, $7.6 million
8.6 percent — Winchester Medical Center, $52.8 million
6.5 percent — Inova Fairfax, $96.3 million
5.1 percent — U.Va. Medical Center (Charlottesville), $120.3 million
3.5 percent — Mary Washington (Fredericksburg), $20.4 million
2.5 percent — Novant/U.Va. Culpeper, $2.4 million
- 3.7 percent — Novant/U.Va. Prince William (Manassas), $7.3 million loss
-13.9 percent — Warren Memorial (Front Royal), $8.9 million loss
VHI also provided this information on Warrenton nursing homes’ financial performance in 2017:
• Fauquier Health Rehabilitation & Nursing Center produced a $468,000 profit on patient revenue of $9.8 million. The 113-bed nursing home has the equivalent of 96 full-time employees.
• Brookside Rehabilitation and Nursing of Warrenton produced a $553,434 profit on revenue of $12.2 million. The 130-bed nursing home has the equivalent of 94 full-time employees.
Please, be polite. Avoid name-calling and profanity.
For credibility, sign your real name; stand behind your comments. Readers will give less credence to anonymous posts.
Savefauquiercounty2019 · February 17, 2019 at 6:57 am
Hospital compare on Medicare.gov gives Fauquier hospital a 2 star rating.
5000 deaths A week occur in our nation's hospital due to neglience and medical errors per Hopkins study. It is the 3rd leading cause of death.
If you assess their job positions on line, one can question are they replacing the 4 year bachelor educated nurse with a 1 year degree nurse?
What are their hcap scores, readmissions rates?
Martha Jefferson hospital in Charlottesville has a 5 star rating.
Medicare pays on a diagnostic related group, a lump sum whether you stay 1 or 50 days unless there are complications,comorbidities. So less patient days is good only if they aren't discharging too soon.
Quality care saves lives. The public needs to know if they are onboarding new staff successfully by not overloading them, and recruitment and retention. STRONG, EXPERIENCED, EDUCATED Nursing leadership will help because they can mandate appropriate level of staffing, education and experience. Fauquier county residents deserve a hospital with a 5 star rating. No one life should ever be put in harms way.
Factfinder · February 15, 2019 at 4:21 pm
Meant to put what also ISN’T mentioned is staff turnover.
Factfinder · February 15, 2019 at 4:19 pm
One way to save money is cut personally. One only need to look at the number of full-time employees in 2013 when all floors were fully staffed and patients gave glowing recommendations. Now look at the full-time staff. There has been an 18 percent reduction. What also is mentioned in this glowing financial statement is staff turnover. Ask some former employees about how the hospital saves so profits soar. One question to ask is how the hospital provides more and better quality service with fewer employees. Not all things can be automated.
Enter your email address above to begin receiving
news updates from FauquierNow.com via email.
Thursday, May 23
A $2,100 Home Depot grant covered the cost of outdoor furniture, landscaping and bird feeders
Thursday, May 23
Ranking to buy building, park benefactor dies, $2-million investment planned, 911 system anticipated and town budget hearing set
More Fauquier news
Wednesday, May 22
Tim Ernst of Turnbull turns passion for preventive medicine into second career