WinnMed Reports Strong Finances, Facility Growth, and Service Expansion to Winneshiek County Supervisors

You'll want to remember this moment. Help us record what's happening in Decorah. DECORAH — WinnMed officials reported solid financial results and major facility progress during their annual presentation Monday before the Winneshiek County Board of Supervisors, outlining a year marked by record revenues, construction milestones and an expanding range of medical services. Chief Administrative Officer Steve Slessor said fiscal year results were "very positive," with the hospital's next budget focused on investment and expansion. "Our budget for next year is definitely more of an investment budget," Slessor told supervisors. "Between our new building projects that we've added and all of our new specialties that will be ramping up," Slessor listed urology, rheumatology, dermatology, a second general surgeon, and another family practice physician, "we've added a lot that we're gonna be ramping up here over the next two, three, four years," he added. Slessor also marked a major construction milestone: the opening of the upper level of WinnMed's new two-story medical office building, which houses primary care. "Last Monday, we opened up the lower level, that is specialty, and this morning is primary care in the upper level," he said. The project's remaining renovations, including surgery support space and two minor procedure rooms, are scheduled to finish in February. The facility's design introduces an "on-stage/off-stage" model separating patient and staff areas, an approach Slessor said improves privacy and atmosphere. "Patients have their own corridor to exam rooms and the team spaces [are] on the other side of that exam room," he explained, "Staff are just shocked at how quiet and calm the space is. That was really the whole point of that 'on-stage/off-stage' environment." He acknowledged the layout "is more expensive way to build" because it requires additional hallways and dual-door exam rooms, but emphasized that it creates "a better healing environment." Financial Performance Chief Financial Officer Ben Stevens presented the financial report, highlighting a record year in revenue and growth. "We surpassed $100 million in total operating revenues this year, which is a big accomplishment for hospitals our size," Stevens said. He noted WinnMed's operating income of $3.6 million, and that even without IPERS adjustments, "we would have been right around that $2.2 million operating income." The hospital saw a 10 percent increase in net patient service revenue, roughly $20 million of additional business for the rural facility, driven by strong performance across surgery, emergency, radiology, and family practice. WinnMed also reported a $28 million investment in capital assets during the fiscal year, an atypical amount for the organization. "Last year was $5.9 million, the year before that was about $3.5 million," Stevens said, "We're almost done [with construction]. We'll have another big year next year…and then we'll hopefully be back down to the regular routine operating capital, about $4 million a year." The organization currently carries $23 million in long-term debt, mostly tied to the facility expansion, including $35 million in U.S. Department of Agriculture direct loans at 3.5 percent interest and an additional $4 million USDA RDLG (Red-Leg) loan at 0 percent interest for 10 years. Medicaid Program and Future Challenges Stevens said WinnMed continues to benefit from Iowa's Medicaid Directed Payment Program, which reimburses hospitals for Medicaid services at near-commercial rates. "That provided an additional benefit of $5 million," he said, though the program "has to be reapproved by CMS every year." Slessor elaborated that Iowa's version of the program is conservative compared to other states, with reimbursements set at 90 percent of commercial rates. He said while WinnMed expects continued approval, the federal "One Big Beautiful Bill Act" will gradually reduce payments over the coming years. "While it's great today, we expect that number will start getting less and less," Slessor said. To prepare, he said WinnMed's strategy is to "keep generating larger and larger operating revenues" through growth and service expansion to offset reduced state payments and rising costs. Stevens said the hospital remains financially stable with 115 days cash on hand, but noted that collecting payments from insurance companies "is more difficult," especially under Medicare Advantage plans that "deny stuff with artificial intelligence now." Growth and Recognition Slessor said WinnMed continues to grow its workforce, with about 650 employees including Mayo Clinic–affiliated physicians. He added that the hospital was recently named one of Iowa's top places to work, an award received in Des Moines. He also announced a milestone in medical technology: "Come November 5th, we have our first robotic-assisted surgery with the da Vinci machine," Slessor said, adding that WinnMed's general surgeons and obstetrician-gynecologists are training on the system. Board Action After the presentation, supervisors voted unanimously to accept and file the annual financial report from WinnMed. Never a dull moment! Subscribe to the free DecorahNews.com newsletter and stay one step ahead with local news and information you just can't get anywhere else.