Due to an accounting error, Edward-Elmhurst Health overestimated expected revenue from income and patients to the tune of $92 million.
Hospital officials say the error accumulated over more than six years “based on recommended accounting practices at each hospital.”
$42 million of the error occurred before the Edward and Elmhurst hospitals merged in 2013.
This comes after the hospital announced a $50 million cost reduction plan in August. That plan included layoffs of 84 employees and elimination of 234 positions overall, mostly by not filling open positions.
Officials say collecting the $92 million would not have prevented those cuts.
This time, they say, there will be no layoffs or service cuts to compensate.
The error was discovered after outside auditor Ernst and Young recommended an evaluation of the system’s accounts receivable.
The hospital has updated its accounting practices to correct the error.
But that has resulted in a blow to the hospital’s bottom line, reducing its income for the first six months of the 2018 fiscal year by $10.4 million.
In a press release, hospital officials said, “Edward-Elmhurst’s cash position and balance sheet remain strong. Volumes are high and continue to grow, and the system continues to be recognized for quality at the national level.”
Naperville News 17’s Beth Bria reports.