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.

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