For the First Time in Decades Natividad Medical Center has a Positive Cash Balance for 07 Before Any County Subsidy.

With a long history of financial struggles Natividad Medical Center (NMC), for one of the first times in its 121 year history has experienced positive cash flow at the end of its recent fiscal year - before any county subsidy.

Natividad has incurred $2.4 million in approved expenditures for Huron consultants to date (as of June 30, 2007), with a $20.3 million reduction in operating losses compared to last year at this time. This $20.3 million improvement in operations was created by a $5 million improvement in the billing and collections processes, a $12 million “special government funding” revenue improvement and a decline in expenses of $3 million.

Historical subsides to Natividad have ranged form $8-$20 million. The Huron consultants have been in place since November of 2006 with their reimbursement and continued employment directly tied to the improved financial performance of the hospital.

The hospital is embarking upon a strategic plan and has begun reinvestment in clinical patient care equipment to elevate patient care.

Harry Weis, Interim CFO, and a Huron Consultant states that Natividad has benefited from a return of eight times the investment in consulting fees thus far. There’s much more to be accomplished before our contract expires next November. But this positive cash balance is a historical moment in Natividad history.”