By JOHN THOMPSON
jthompson@thecitizennews.com

Despite net operating losses in the millions over a two-year period, Fayette Community Hospital CEO Darrell Cutts said the hospital is performing better than most in the region.

Statistics obtained from the Georgia Department of Community Health show the hospital had a net operating loss of $2.4 million in 1997 and a loss of $3.8 million in 1998.

The hospital has not yet turned in its figures for 1999, which were due May 31. The hospital operates on a fiscal year ending June 30.

Cutts said the losses were attributable to huge start-up costs for the hospital, which opened in 1997.

He also discounted rumors that the hospital had laid off 20 office people.

“That's the furthest thing from the truth. As a matter of fact, we've got about 25 vacancies,” he said.

Hospitals around the country are starting to feel the effects of the 1997 Balanced Budget Amendment, which has cut off a lot of federal funds to the health care providers.

Cutts estimated his facility has lost about $3.4 million in federal funds since the amendment was passed, and Department of Community Health public information officer John Rice said numerous hospitals in the region have lost millions in state and federal Medicare and Medicaid reimbursements.

“We're only reimbursed from 35-60 cents on the dollar,” Cutts said.

The CEO said the hospital is making its budget, but in this age of less reimbursements, even nonprofit hospitals are struggling to break even.

In today's age, Cutts said it's rare for a hospital to make money on operating expenses and added that many of the more established hospitals make their money on investments in the stock market.

“Since we're such a young hospital, we don't have that many funds to invest,” he said.

Now that start-up costs have been absorbed, Cutts said he expects future net operating balance sheets to look far better.