2019 ANNUAL REPORT
Fiscal Fitness Maintained in 2019
A constant focus on cost-saving “operational excellence,” growth in some service lines and some one-time financial enhancements combined to produce an extraordinary fiscal performance for NorthBay Healthcare in 2019.
“We sustained our momentum and focus on ‘Operational Excellence’ — what we call OpEX — and our commitment to growing advanced medical services,” explained President and CEO B. Konard Jones. “We succeeded in adding more advanced medical services, opened a state-of-the-art new wing and finished the year with a remarkable financial performance.”
According to unaudited, preliminary reports for 2019, net operating income totaled $46 million, compared to $41 million in 2018.
The bottom line was bolstered by a settlement with Blue Shield ($15.7 million) and resolving a dispute over underpayments for services from December 2016 to August 2019. A new three-year contractual agreement was reached.
In addition, other one-time financial gains in 2019 were a result of the recognition of provider fee revenues from California's Quality Assurance Fee program.
“NorthBay Healthcare’s continual financial well-being was recognized by Standard & Poors, which reaffirmed NorthBay at a BBB- rating with a ‘stable’ outlook. But we believe we will be on track in 2020 for an improvement in that rating,” Konard said.
Protecting its independence is paramount for NorthBay Healthcare.
“Every dollar of net income goes back into 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.”