Declines in patient traffic, rising costs key factors in deficit
Double-digit declines in several areas led to a drop in revenue and contributed largely to a $1.3 million operating loss for Ely-Bloomenson Community Hospital this year.
The financial report, tempered in part by better than $3 million in non-operating gains in the fiscal year that ended in September, was delivered Monday during the annual meeting of members of the Ely Health and Hospital Foundation, the umbrella organization of EBCH.
The organization remains on sound financial footing, according to a report delivered by Richard Kes of accounting firm RSM, but hospital chief executive officer Patti Banks acknowledged many of the challenges of the last 12 months during her address to the audience of roughly 20 people.
While overall operating expenditures were nearly the same and indeed declined slightly from $32,402,000 last year to $32,210,000 in 2025, operating revenue tumbled from $32,143,000 to $30,924,000 - resulting in an overall loss of $1,386,000.
Banks outlined an array of reasons in her address, noting costs for many hospital supplies have doubled.
She identified that a box of sutures has climbed from $304 to $700.
“This is across the board and these are needed supplies,” said Banks.
But the overriding factor appears to be a decline in traffic, with laboratory orders plummeting by 21.5 percent (from 22,928 to 17,976) patient days falling by 19.2 percent (578 to 467), radiology visits off 12 percent (4,279 to 3,764), retail pharmacy fills down 11.9 percent (54,393 to 47,894) and surgeries off 8.5 percent (583 to 533).
Emergency room visits were flat (3,776 in 2024 and 3,747 this year) but swing bed days climbed from 398 to 476.
“There has been a decrease in volume and patients that are coming to our hospital,” said Banks.
Banks attributed that in part to a decline in overall visitor or tourism traffic in the region.
“This year we did see a decrease in our annual visitors, and what we have seen across the state are that lodging taxes are down about 15 percent,” said Banks.
EBCH is a 21-bed, critical access rural hospital, and some of its departments are small in size.
Banks cited “a good note” including 10 births this year by hospital staff including six in the nursing department.
But that has come with challenges in staffing as well.
“We have to watch our schedule and it lowers our ceiling on how many procedures we can do,” said Banks. “We may not be able to schedule five MRIs in one day and keep our volumes up.”
The various challenges have prompted what Banks termed as a “strategic realignment,” in an effort to reduce the budget red ink.
Progress is already being made in one area - reducing EBCH’s reliance on contracted or traveling staff members.
“That has mitigated some of those expenses,” said Banks.
Another focus is what Banks termed as “resetting our base in order to maintain growth.”
“One of the areas that we discovered is opportunity in our surgical department,” she said. “If and when we are able to get more surgical procedures that meet the needs of our patient population, we will be able to increase the amount of surgeries we offer.”
Another focus is on outpatient treatment.
“With advancements in medication and pharmaceuticals, people can come into the hospital for a few hours during the day and we can monitor and treat them on a short-term basis.”
EBCH is also exploring the potential for a specialty clinic as well as enhanced grant possibilities.
Banks noted the recent completion of a community health needs assessment and cites the hospital’s impact on the community, not only as a major employer but its role in providing health care.
“We are impacting people,” said Banks. “We are allowing people to access health care in their community as well as bridging gaps.”
In addition to an array of statistics Banks also reported on a series of accomplishments - particularly the hospital’s recognition as a five-star hospital from the National Rural Care Health System.
Banks also tempered some of the difficult financial news with some perspective.
“One of the worst things we can do is get caught up with a scenario that the sky is falling,” said Banks. “I think if anything we have proven our resilience.”
The economic impact of the hospital was also touted, with EBCH growing its ranks back to 122 employees including 109 full-time equivalents, and payroll and benefits “of up to $14 million that we pump back into the community.”
• Also Monday, Tim Riley, John Saw and Michael Pettinelli won seats on the hospital’s board of directors. They were the only candidates put forth by a nominating committee.
The group also saluted outgoing board member Devon Luthens, who completed her third term on the board.
