'A Strong Position to Move Forward:' WinnMed Presents FY2024 Report

Stay informed, stay empowered: invest in the journalism that invests in you. DECORAH — WinnMed officials presented their annual financial report to the Winneshiek County Supervisors on Monday, highlighting a strong fiscal year and outlining growth plans aimed at expanding services in the community. CAO Steve Slessor and CFO Ben Stevens provided a financial summary and updates on ongoing projects. Stevens reported a positive financial performance, citing a $2.7 million operating income for fiscal year 2024. However, he noted that without the Medicaid Directed Payment Program and adjustments from the Iowa Public Employees' Retirement System (IPERS), the hospital would have faced a $2.4 million loss. "The Medicaid Directed Payment Program is pretty vital to us," Stevens said. "The state of Iowa will apply for year three here in April, and we'll know about its approval in June. It's a program that hopefully continues but is not guaranteed." The program enables the hospital to receive higher reimbursements for Medicaid services, aligning payments more closely with commercial insurance rates. Medicaid reimbursements have remained stagnant for years, and the shift to managed care further diminished hospital funding. According to Stevens, this program represents one of the few financial boosts that Medicaid-funded facilities have experienced in years. Stevens also detailed WinnMed's cash and investment position, stating the hospital saw a $2.9 million decrease in cash due to capital investments, including a $7 million contribution to a major building project. "Our big building project will be funded with $7 million in internal reserves, $8 million from local banks or USDA REDLG funding, and $35 million from USDA at a fixed 3.5% interest rate for 30 years," Stevens said. "It's pretty unheard of for a hospital to secure a 30-year fixed note like that." WinnMed's total operating revenue increased from $81 million to $93 million, a $12 million rise attributed to growing patient volume and expanded services. Gross patient revenue climbed from $165 million in 2023 to approximately $180 million in 2024. Slessor noted that growth remains a priority. Between May and September, the hospital expects to onboard five new physicians, including specialists in rheumatology, urology, family practice, and dermatology. "Our financial viability strategy is through growth, which also has the great benefit of providing more services," Slessor said. "We don't control the net revenue per patient. Medicare and Medicaid dictate what they pay, and commercial insurers set their rates. Our only option is to increase volume by expanding our services." WinnMed also recently finalized a long-term agreement with Mayo Clinic, securing the employment of current physicians under the Mayo system through 2040. Additionally, a new professional services agreement with Mayo will allow WinnMed to maintain its affiliation while operating independently. "The transition from Mayo to WinnMed is complete," Slessor said. "We've proven we can recruit directly under the WinnMed umbrella, which is a really positive thing coming out of this transition." As WinnMed continues its expansion, leaders acknowledged the challenges posed by government reimbursement changes and rising healthcare costs. However, with strong financials, an ambitious growth plan, and secured funding for its expansion, officials expressed confidence in the hospital's long-term stability. "We're feeling really good about where we sit now," Slessor said. "Things can certainly change with governmental programs, so we have to be ready to adjust, but we're in a strong position moving forward." Join the community of savvy subscribers (for free)! Get the latest updates, tips, and insider information by subscribing to the free newsletter today.