Memorial posts $10 million loss for May due to stock losses

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Memorial Health System saw an increase in its profit margin of $3.9 million, slightly ahead of budget expectations.

But overall, it lost $10 million in May, due to unrealized losses in the stock market, said interim CEO Mike Scialdone.

Scialdone highlighted Memorial’s financial performance in his monthly presentation to the Colorado Springs City Council.

Year-to-date, the municipal hospital earned $21.6 million, and overall net income was $9.6 million, slightly better than budget. The hospital has 187 days of cash on hand. Those numbers are higher than they were this time last year, he said.

“Patient volume continues to be a concern,” Scialdone said. “And we’re working on operating efficiencies that we’re seeing show results in the first half of the year.”

Scialdone said the hospital was in talks with physician groups, letting them know that Memorial was willing to collaborate “at any level.”

“Have those talks worked?” asked City Councilor Tim Leigh.

“We haven’t yet seen any results, but the talks are ongoing and promising,” he said.

Scialdone also said that Bruce Schroffel, CEO of University of Colorado Hospital, will speak to employees today about their new pension and benefits plan. UCH hopes to lease Memorial beginning Oct. 1. Voters will decide about the lease arrangements on Aug. 28.

“I can’t give details here, because they want the employees to hear about the plans first,” Scialdone said. “But I can assure you that the plan is generous. And I can tell you that Bruce and the rest of UCH have been responsive to employee concerns. But there’s no way to meet 4,000 employee’s individual expectations.”