The mid-year financial report from Estes Park Health shows improvements to keep revenues at projected budget levels
This week, Interim Chief Financial Officer Pamela Serbin-Olson presented the year-to-date financials through the second quarter of 2025 at the Park Hospital District finance committee meeting on Tuesday, Aug. 26 and the regular board of directors meeting on Thursday, Aug. 28.
Estes Park Health is on-target with their patient service revenue budget goal for year-to-date in 2025 of $28.7 million, a $1 million increase over June of 2024 and $2.2 million above June of 2023.
“The revenue numbers are exactly where we should be for this point in the fiscal year,” said Serbin-Olson. “I am pleased to see the increase in year-over-year figures of $1.067 million or 3.9% over 2024.”
Serbin-Olson, however, indicated that expense management needs to be a priority for the remainder of the year. Currently, Estes Park Health is only 2.5% over budget for operating expenses. The position reflects good management of expenses for maintenance, repairs, insurance, and supplies, which are all under budget.
Where the well-managed figures get offset are in the categories of professional fees and purchased services, and utilities.
A significant portion of the over-budget professional fees are related to under budgeted legal expenses to prepare for the affiliation with UCHealth and an extensive number of responses and legal proceedings connected to Colorado Open Records Act requests.
The excess in purchased services reflects the need to hire temporary nursing staff and locum physicians to fill in for vacancies in the first half of the year. These openings do not reflect anything within the organization but rather the loss of several employees who had family and personal changes that resulted in a move from Estes Park.
After reporting that the hospital was $353,000 under budget at the May meeting, Serbin-Olson updated the group to indicate that the operating loss is unfavorable to budget by $789,000 for the year.
“Overall, EPH is on target with our revenue budget year-to-date for 2025,” said Serbin-Olson. “However, we need to continue to focus on expense management. We have a favorable cash on-hand figure, which increased two days year-over-year. And days in receivables also improved by ten days year-over-year.”
Recent articles have reflected inaccurate information about the financial condition of the hospital and the capital projects being worked on at the facility. EPH shared the hospital was under budget by $353,000 through May 2025, not the $1.45 million reported.
The firewall project under the capital projects list of priorities is not a computer project but rather a building project to re-classify walls that no longer need the firewall rating or need to be upgraded to accommodate changes within the facility since original construction of areas of the hospital. This project became priority, and thus bumped a couple of other projects down on the list, as part of the preparation for closing with UCHealth later this year.
One of those projects is the replacement of the hospital roof. EPH CEO Vern Carda noted at the PHD board meeting on Thursday that the roof project is still a priority and bids are currently being obtained. The projected dates for the project are to start in May 2026 so the estimated four-month project can be completed before weather becomes a hinderance.
Overall, EPH CEO Vern Carda feels the hospital is in an excellent position for this point in the year. With recognition of managing expenses in professional fees and contract labor, Carda is optimistic that the year can continue to stay on course to achieve budget.
He also noted at the board meeting that the affiliation process is progressing, with UCHealth looking at the processes to transition PTO days, counterpart staff members on both sides beginning conversations about their work requirements, and completing the request to update resumes in the hospital HR system.
In addition to budget numbers, staffing data shows better-than-average turnover rates when compared to industry standards. As shared in the special public meeting with hospital employees, leaders and physicians and the Park Hospital District Board of Directors on Aug. 21, Human Resources Manager Anna Lipasek stated that the staff turnover rate at EPH is 11.11% for 2025, when including PRNs (or as-needed staff), and 12.09% without PRNs. The health care industry average is 20.7%.
“Many of the people leaving EPH are voluntary terminations, with 9.72% of the 11.11% figure representing employees choosing to leave,” said Lipasek when asked to clarify the figures she presented last week. “Most of the reasons they leave include benefits being too expensive, a difficult cost of living in Estes Park and the choice to no longer drive the long distance to get to work.”
Two resolutions that were tabled at the Aug. 21 special board meeting were also voted on at the Aug. 28 board meeting. The resolution to not make any changes in or to evaluate senior executives at Estes Park Health prior to the completion of the affiliation with UCHealth passed while the resolution to update the process of PHD Directors working directly with EPH staff rather than through the appropriate officer positions, as the current guidance states, has been tabled indefinitely.
The next Park Hospital District board meeting will be held in-person and online on Thursday, September 25 at 5:30 p.m. Register for the meeting at https://eph.org/about-us/board-of-directors/meeting-information-revised/.