2018 ANNUAL REPORT
Fiscal Rebound Accomplished
A focus on cost-saving “operational excellence,” growth in several service lines and some one-time financial enhancements combined to produce an extraordinary fiscal turnaround for NorthBay Healthcare in 2018.
“A lot of hard work, dedication to ‘Operational Excellence’ (OpEX) and our commitment to growing advanced medical services showed up in the bottom line,” explained President & CEO B. Konard Jones. “It was a remarkable rebound financially for us as we focused on operational excellence.”
According to unaudited, preliminary reports for 2018, net operating income totaled $43 million, compared to an operating loss of $31 million in 2017.
The bottom line was bolstered by a one-time $15 million payment from renegotiated rates with the local Medi-Cal managed health plan. In addition, realized investment income came to $8.2 million.
“We continued to grow our market share, innovate and increase efficiency in care delivery,” Jones said. “That was essential last year because we were continuing our legal challenge to recoup what is owed us following capricious reimbursement cuts forced on us unilaterally by Kaiser Foundation Health Plan and Blue Shield of California.”
The legal battle began in 2017 after the two health plans terminated their contracts with NorthBay Healthcare.
Kaiser and Blue Shield patients continue to use NorthBay's emergency services. Reimbursements since the contract termination are estimated to be $63 million less than what NorthBay would have received under previous contracted rates.
Protecting its independence is paramount for NorthBay Healthcare.
“Every dollar of net income goes back in to the local health system to care for this community,” Jones noted. “We will continue to be the county’s only community-based, not-for-profit health care provider. Maintaining our independence is imperative so local resident have a choice, not a monopoly.”