Mon Health System hopes surgery center joint venture will help bottom line — 6 insights

After ending fiscal year 2018 with a $26.5 million loss, Morgantown, W. Va.-based Mon Health System hopes a joint venture with physicians will help offset blows to its bottom line, The Dominion Post reports.

Here's what you should know:

1. Mon Health partnered with physicians to operate a surgery center at its new campus in Morgantown, W. Va. Administrators hope the joint venture will help the system break even in fiscal year 2019.

2. Out of the system's eight segments, Morgantown-based Mon Health Medical Center was the only one to finish in the black in 2018, with a $7.5 million surplus, according to Interim President and CEO Tom Senker.

3. Mon Physician Services generated the biggest losses this year. Mon Health System rapidly acquired physician services over the past three years and accrued costs from integrating the practices into the system.

4. Increased salaries, new hires and decreased referral sources due to competitor expansion also hurt the system's bottom line.

5. Total patient volume fell up to 10 percent within about one year. Net patient revenue decreased from $283.3 million in 2017 to $244.3 million.

6. Despite posting a loss, Mon Health System finished the fiscal year in a better position than it started and expects Mon Health Medical Center revenue to reach $25.5 million in fiscal year 2019.

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