IRMC CFO Greg Gardner
AT THE MONTHLY CHAIRMAN’S MEETING OF THE INDIAN RIVER COUNTY HOSPITAL DISTRICT (IRCHD) ON AUGUST 18, 2016 INDIAN RIVER MEDICAL CENTER (IRMC) CFO GREG GARDNER PRESENTED AN UPDATE ON JULY AND YEAR TO DATE IRMC FINANCIAL PERFORMANCE.
While the local media has widely covered the fact that Camie Patterson, FACHE, CPA, FHFMA, recently joined IRMC as its new Chief Operating Officer, no one has reported that Mr. Gardner is retiring from his CFO position. According to Lewis Clark, Jr., MPA, VP/Marketing, Corporate Communication, Digital Media, Mr. Gardner will be phasing out his duties over the next several months.
An accomplished financial executive, Mr. Gardner has served as IRMC CFO for the past three years. Previously, for three years he was CFO for the National Healing Corporation where he was involved in building the organization from 120 hospital based wound care centers to over 500 centers.
From 2002 – 2009 has was CFO of IRMC, where on his LinkedIn page he “Managed through crisis resulting from default of compliance with bond covenants that occured prior to (his) employment, salvaged relationships and regained confidence from commercial bank and bond insurer supporting the outstanding bonds.”
Mr. Gardner presented what, to us, seemed a bleak outlook on IRMC’s financial performance for the fiscal year ending 9/30/16.
Whereas for the year ended 9/30/15 IRMH had revenue of $ 234 million and reported operating income of $ 1,005,596 (not including any income from the IRMC Hospital Foundation) for the fiscal year ending 9/30/16, Mr. Gardner projected a “breakeven operation.”
Mind you, as Mr.Gardner reported, the IRCHD provides “3.4%% of IRCMC revenue from Indian River County taxpayers as reimbursement for IRCMC indigent medial care. What would the operating income/loss be without the 3.4%?
What may be weighing on Mr. Gardner’s mind is that Orthopedic Surgeon Omar D. Hussamy is now aligning himself, as confirmed by his office, with Sebastian River Medical Center (SRMC), where he will performing “most” of his surgeries. His office confirmed he will not be closing his facilities in Vero Beach but either through an acquisition or a strategic alignment will performing surgeries at SRMC.
We did our best to calculate the impact on IRMC of Dr. Hussamy transitioning his surgeries to SRMC.
According to Becker’s Orthopedic Review:
1) An orthopedic surgery costs between $ 25,000 – $ 30,000.
2) Full-time orthopedics perform an average of 32 procedures/month.
@ $ 25,000/each that represents $ 9,600,000 in revenue.
Let’s be conservative and say that by transitioning his surgeries to SRMC, the loss of Dr. Hussamy’s revenue ONLY results in $ 5,000,000.
With a breakeven operation, then IRMC would have an operation with a $ 5,000,000 loss. On 2015 revenues of $ 234 million. With IRCHD funding 3.4% of those revenues.
Then there is the unknown loss of revenue due to the IRMC Partners in Women’s Health practice where a group practice of doctors deliver approximately 80 percent of all Indian River County newborns and provides comprehensive gynecological care to women of all ages.
SRMC is undergoing a major expansion, with a groundbreaking of their $ 64 million project set for August 29, 2016, where the hospital has been hiring new doctors with specialties that include gynecology.
Let’s not forget that as a not-for-profit, IRMC pays no property taxes and has a free lease with the IRCHD that owns it.
With thanks to his service, perhaps this is the right time for Mr. Gardner to seek retirement, or his next move.