Medicaid News
Medical Center’s expected operating margin increases to $19.5 million
2/4/2009
The Medical Center of Central Georgia, struggling to emerge from a slump, approved a 2009 budget this week that anticipates an operating margin of $19.5 million.
That’s up from just $4.3 million in 2008, an increase made possible by a recent cost-cutting and performance initiative that included laying off more than 200 people in October.
Medical Center CEO Don Faulk said the changes made through that strategic performance initiative will save the hospital $30 million in fiscal 2009. An additional $13 million more savings is expected annually once longer-term changes are initiated.
Even so, the savings won’t bring Bibb County’s largest employer to its goal of a 4 percent net profit margin, the amount hospital officials say is needed for the hospital’s financial health.
But the budget shows the profit margin increasing from less than 1 percent in fiscal 2008 to 3.2 percent, said Rhonda Perry, the hospital’s chief financial officer.
Read this article by S. Heather Duncan from the Jan. 25, 2009 Macon Telegraph.
