Mackinac Straits Hospital and Health Center is showing a better financial picture than last year, with a $93,970 year-to-date profit.

"All winter long, we have been up, in the emergency department and other areas of the hospital," Chief Financial Officer Jason Anderson reported to the Hospital Authority Monday, April 28. "Revenues have shown a huge increase this year, compared to last year."

He compared the numbers to February 2007, when the hospital was posting a $487,963 loss.

Total revenues to date in 2008, including operating and non-operating revenues, are $17,351,268, while operating expenses are $17,257,298.

In 2007, the hospital's $16,425,853 in expenses exceeded total revenues of $15,937,890.

2006 was the last time the hospital had a positive bottom line, Mr. Anderson said. Significant savings have been realized, he said, by costcutting measures the hospital introduced this year. Some of those measures included restructuring hospital operations and shift changes to make them more efficient, and out-sourcing the hospital's laundry service to a prison in Kinross. Administrative offices were moved to make room for more swing beds, giving the hospital more Medicare reimbursable space. They contracted their computer services with Northern Michigan Regional Hospital in Petoskey to reduce information technology costs, and they also joined a voluntary hospital association through Northern Michigan that gives them high-volume discounts on hospital products.

He added that revenue was down in nearly every area in fiscal year 2007, including the emergency department, which saw much more use this winter because of more severe weather and traffic accidents.

Hospital revenues were also boosted significantly by the use of "swing beds," which are hospital beds used for rehabilitation and recovery after surgery. Medicare reimburses the hospital for up to 100 days a patient stays in a swing bed. The hospital has already logged 1,700 swing bed days so far this year, compared to 266 at the same time of the year in 2007. Swing beds have been the most profitable hospital operation, increasing revenue by 538% for that line item of the budget.

The hospital has also pared down its long term care department, reducing the number of beds there from 99 to 75 last year. Hospital Chief Executive Officer Rod Nelson said the bed reduction responds to diminishing need. The hospital is planning to reduce the number of beds even more if it moves into the new hospital and long term care unit it is planning. The number of beds will be reduced from 75 at the current facility to 60 at the new one.

Long term care beds can be added or reduced as needed, but Mr. Nelson said fewer people are using the unit as some caregivers opt for home health care and assisted living services available outside the hospital.