Good month at Pinckneyille Hospital, paying off 1976 revenue bonds early

Pinckneyville Community Hospital posted operating income of $29,738 and net income of $58,249 for November 2012, bringing the year to date figures to $398,259 in operating income and $600,379 in net income. Net income includes revenue from sources other than operations.

Hospital Administrator Tom Hudgins said bad debt continues to increase, but is below the national average.

PCH representatives will meet next week with a potential source of construction financing. If that is secured, it can be converted to USDA financing for a new hospital.

The hospital had planned to use a $345,040 capital grant from the state on a new facility, but the grant expires June 30. Instead, PCH will use the grant funds to make scheduled capital equipment purchases. An equal amount of cash will be set aside for a new facility, keeping the same amount of funding available for construction.

In other business, the board:

• heard that the family of Wilma Wisely donated compression sleeves and a pump to treat Lymphedema to the hospital. The equipment will be put to good use.

• was told to expect a $234,150 dividend from the Illinois Provider Trust. The liability carrier had a good year and the hospital is part-owner and will receive the funds sometime in March. The dividend last year was $117,290.

• agreed to pay off the 1976 revenue bonds early. The hospital has more than enough to cover the last two years of payments in an escrow account. Hudgins said the original bonds were $1.8 million and were used to build the Rural Health Clinic. PCH still owes approximately $312,250.