UMC deficit reduced slightly

University Medical Center's financial bleeding has slowed as the hospital tries to move beyond a year of police investigations, mismanaged funds and possible graft.

But the hospital is a long way from a financial recovery, officials told the Clark County Commission on Tuesday.

During the first six months of the current fiscal year, the hospital's operating deficit came in at $25.8 million, down from $29.1 million incurred during the first half of 2007.

"I think the hospital has stabilized from where it was a year ago, but I wouldn't characterize it as stable," George Stevens, the county's chief financial officer.

Stevens said the goal was to end the year with a deficit below $50 million, or about $6 million less than in 2007.

Nonpaying patients are the biggest drain on the hospital, Stevens said. As the county grows, so do the number of people who can't pay for care.

About half of the hospital's patients are uninsured, he said, noting that some can afford to pay out of pocket and many can not.

For the hospital to regain its financial health, it must attract more paying patients, said Kathryn Silver, the interim chief executive.

Commissioner Lawrence Weekly asked whether staff might be trimmed in the foreseeable future.

Silver said none of the hospital's 4,000 employees would be laid off. Instead, administrators are looking at jobs they can cut after workers vacate them, she said.

The hospital's deficit ballooned to $56 million in 2007 while Lacy Thomas was at the helm. Before Thomas became chief executive, it seldom rose above $20 million, Stevens said.

Thomas is being investigated for possibly funneling lucrative contracts to Chicago friends who did little or no work in return. Commissioners fired him in January 2007. Two of Thomas's deputies, Richard Powell and Marlo Hodges, were suspended.

The county bailed out the hospital to the tune of $60 million last year.

Aside from bringing in more paying patients, the hospital must improve efficiency, Stevens said. The average length of stay for a patient is well above the ideal, though better than in 2007. Net revenue so far is at $260.2 million, about 7.6 percent higher than at this time last year, Stevens said, explaining that the increase has helped reduce the operating debt.

"Is there anything else to do?" Commissioner Rory Reid asked.

"There's always more you can do," Stevens replied.

Contact reporter Scott Wyland at swyland@reviewjournal.com or (702) 455-4519.