About Chelyen Davis:
Chelyen Davis is health reporter for The Free Lance-Star
Spotsy hospital lost $25.5 million in 2010
The Spotsylvania Regional Medical Center lost $25.5 million in 2010, a first-year loss comparable to the one that Stafford Hospital had.
In 2010, the new Spotsylvania hospital reported revenues of $26.1 million, expenses of $51.6 million and an operating loss of $25.5 million.
Its financial performance was included in the latest edition of the Industry Report, published each November by Virginia Health Information, a nonprofit agency that collects state health data.
The report covers 2010 and includes Spotsylvania Regional for the first time. The hospital opened on June 7, 2010.
Spotsylvania’s loss was expected and typical of what happens at new hospitals, said Tim Tobin, chief executive officer, in an email.
New hospitals spend millions of dollars prior to opening to hire and train staff and purchase equipment and supplies, Tobin said. However, they don’t earn revenue until opening day when patients arrive.
“We recognized that we needed to make significant investments during our first year, both before and after we opened,” Tobin wrote.
Spotsylvania’s loss mirrors what happened at Stafford Hospital in 2009, its first year.
Stafford was open for 10 months that year, compared to seven months for Spotsylvania Regional during its first year. Stafford Hospital lost $22.5 million.
(Virginia Health Information offers some data free from its Industry Report. It can be seen here. For more on Spotsylvania Regional’s first-year performance, see the story soon in the paper.)