Worcester Business Journal

12 Worcester Business Journal | November 27, 2017 | wbjournal.com Milford Regional has turned around its financial fortunes and is poised to remain independent in a consolidating industry Back in black F OC U S W hile pressure is high for community hos- pitals, Milford Regional Medical Center has thrived, launching key affiliations and upgrad- ing and expanding facilities over the BY EMILY MICUCCI Worcester Business Journal Staff Writer last 10 years. But after a major renovation and expansion of its medical-surgical and emergency departments completed in 2015, the 145-bed, acute-care hospital nestled in downtown Milford was feel- ing the squeeze. By the end of 2016, Milford Regional was operating in the red, posting a $7-million operating loss and a $5.3-million net loss. The hospital announced it would end inpatient pedi- atric services, a low-volume program difficult to staff. President and CEO Edward Kelly said in an interview this month hospital executives didn't question the decision to borrow $25 million to finance the largest capital project in Milford Regional's history (the rest was fund- raised). Doing so would create needed capacity for volume growth. "It was a big leap, and our history had been really growth, growth, growth," said Kelly, who has been a member of the hospital administration since 1993. Seeking to reverse the loss, depart- ments across the Milford Regional sys- tem, which includes the doctors group, Tri-County Medical Associates, were asked to chip in, tightening expenses, including salary and pension freezes, while digging deep to increase services. The cuts appear to be paying off. The system is projected to finish with a small operating surplus of about $178,000 and net income of $2.24 mil- lion in fiscal 2017, which ended Sept. 30, according to unaudited financial results provided by the hospital this month. Final numbers are due out in December. Kelly said he doesn't expect Milford Regional Medical Center CEO Edward Kelly said new volume driven by the opening of urgent care centers has given the hospital system a needed boost. H E A L T H C A R E P H O T O S / E D D C O T E

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