Healthcare in American Samoa faces ongoing challenges, with the Lyndon B. Johnson Tropical Medical Center (LBJ) at the center of these issues. The hospital’s financial performance has remained under pressure, even as it attempts to manage rising costs and limited revenue growth.
This article compares the financial results from FY2023 with those from FY2021, highlighting key areas of concern.
In FY2023, LBJ’s operating revenue was $65.8 million, up from $55 million in FY2021. The increase primarily came from Medicaid reimbursements, which rose by $1.2 million. However, this growth has not been enough to offset the rising operational costs, leaving the hospital’s financial health in a precarious position.
Non-operating revenue, including government appropriations and grants, increased from $14 million in FY2021 to $16.8 million in FY2023. The rise is mainly due to additional federal and local grants, but this increase has not been sufficient to alleviate the financial strain from higher operating expenses.
Operating expenses at LBJ surged to $81.1 million in FY2023, a jump of nearly $10 million from FY2021. This increase is driven by rising costs in salaries, supplies, and other operational needs. The significant rise in expenses highlights the financial challenges the hospital continues to face, despite efforts to manage costs.
LBJ reported an operating loss of $15.3 million in FY2023, a slight improvement from the $16.2 million loss in FY2021. While the deficit has narrowed, it underscores the ongoing financial difficulties the hospital faces, particularly in generating positive operating income.
Salaries and employee benefits remain a major expense, totaling $33.3 million in FY2023, slightly down from $33.8 million in FY2021. The reduction may reflect staffing challenges or wage controls, both of which could impact the quality of care at the hospital.
Supply costs were $21.5 million in FY2023, down from $24.9 million in FY2021. However, when adjusted for inflation, the real cost of supplies has likely increased, adding pressure to LBJ’s finances.
Inventory levels also decreased from $5.2 million in FY2021 to $4.3 million in FY2023, raising concerns about potential shortages.
LBJ’s cash reserves dropped from $16 million in FY 2021 to $10.9 million in FY2023, signaling reduced liquidity and a need for better cash flow management. The decline in cash on hand highlights the hospital’s financial vulnerability.
Accounts receivable surged to $19 million in FY2023 from $11.3 million in FY2021, indicating difficulties in collecting payments. Similarly, accounts payable increased to $9.6 million from $6.7 million, reflecting growing unpaid obligations. Both trends point to significant financial management issues that LBJ needs to address.
