By ANDY GARDNER

MASSENA -- After hearing a report on August’s financial summary, which included a $322,904 net loss that was covered by cash reserves, members of the Massena Memorial Hospital Board of Managers questioned why they are so much further in the red than a year ago, despite more patients.

“We’ve had … more patients and we’re generating less revenue,” board member Gary Borgosz said.

MMH ended August with a $322,904 net loss, which was made up with cash reserves. A year ago, they saw a $508,384 net gain.

In August of this year, they treated 11,712 outpatient cases versus 10,950 a year ago. In patient discharges for August 2014 totaled 201, compared to 177 the same month in 2013. Observation visits went up as well, 79 last month and 61 a year ago.

“I’m a math person and this does not make sense to me,” board member Loretta Perez said.

MMH CEO Charles Fahd attributes the loss to new doctors that board members said have yet to turn a profit.

“We didn’t know we were going to recruit them” when the 2014 budget,” Fahd said. “It wasn’t budgeted last year, so there’s no comparison.”

Borgosz, reading a from a packet handed out only to board members, said in August alone, MMH spent an extra $137,000 on purchases, $138,000 on salaries, $127,000 on professional services, $66,000 on supplies and $37,000 on other expenses.

MMH CFO James Smith said some of that specifically went to accounts receivable staff, the firm hired to search for a new CEO and “a (public relations) firm working on behalf of the hospital.”

He also cited a higher-than-average caseload at orthopedic surgeon Bedros Bakirtzian’s office. Smith said the doctor was on vacation in July, so all of his surgeries were pushed to August, which upped their supply bill.

Fahd also pointed to private insurance reimbursements going down. He said Medicare reimbursements are going up, but they pay at a much lower rate.

Year-to-date, MMH has lost $2,968,612, which compares to a $1,363,079 loss for the same timeframe last year.