NorthBay Healthcare Financial Report 2016

Financial Pie Charts

NorthBay Healthcare turned in its fifth consecutive year of stellar financial performance as its long-range strategic plan succeeded in attracting more patients seeking advanced medical services close to home.

NorthBay Healthcare recorded net operating income of $29.8 million, despite continued cuts in government reimbursement for patients covered by Medicare and Medi-Cal.

“We continue to expand the array of advanced services we offer,” noted Gary Passama, president and CEO. “More patients were cared for close to home and didn't have to leave the county for neurosurgery, cancer treatments, open-heart and vascular surgery and many other forms of advanced medical care.”

“Our strong market share of patients with commercial health insurance coverage helps our bottom line,” Passama added. “Because private plans pay us better than the government, our financial condition remains strong.”

Every dollar of net income goes back in to the system, Passama explained. “We have tens of millions of dollars of maintenance, equipment repair and replacement needs. It's critical that we re-invest and set aside funds for future facility replacement and modernization.”

In 2016, NorthBay Healthcare earned membership in the Mayo Clinic Care Network, a collaboration that gives our physicians access to the world leader in medical care, research and innovation. The local, community-based health system is one of only two in California to be accepted by Mayo Clinic into their network.

Operating revenue topped the half-billion-dollar benchmark in 2016, totaling just over $560 million, outperforming the previous year by 19 percent.

In 2016 NorthBay Healthcare went to the capital markets to finance the next phase of the modernization of NorthBay Medical Center in Fairfield. Lenders were eager to participate in a $210 million bond offer, netting a favorable interest rate and affirming the health system's strategy to improve services and facilities over the next five years.

After finishing a new lobby and “welcome pavilion” in 2016, groundbreaking was conducted on a new three-story wing, expansion of emergency services and replacement of older sections of the hospital.

2016 FINANCIAL RESULTS ($000s)

 

Actual

Budget

Variance

Operating revenue

$563,917

$511,014

$52,903

Operating expenses

534,125

494,615

39,510

Operating gain/(loss)

29,792

16,399

13,393

Prior year settlements

6,446

0

6,446

Non-operating gain/(loss)

4,077

5,718

(1,641)

Unrealized gain/(loss)

6,082

8,440

(2,358)

Net gain/(loss)

$46,397

$30,556

$15,841