Area hospitals aren’t immune to the effects of the recession.

Novant Health, operator of Brunswick Community Hospital, recently announced a $174 million loss in 2008 across the healthcare system. And Jack Barto, president and CEO of New Regional Medical Center, said earlier this month that steps must be taken to respond to economic realities in the marketplace.

There’s a number of factors to consider, Barto said in a written response to questions about the hospital.

“We are seeing additional interest expenses, increases in uncompensated care and a slight decline in outpatient elective procedures. However, we believe New Hanover Regional Medical Center is in a better position than many hospitals because of the steps we took 18 months ago, when we began a formal process of reviewing every part of our operations to better manage costs and reimbursements,” Barto said.

He said the hospital renegotiated managed-care contracts and implemented changes in coding and documentation “to help enhance our revenue cycle.”

New Hanover Regional earlier announced that cost overruns caused by the increased cost of building materials led to building design changes and other alterations in the hospital’s ambitious expansion plan. 

The state approved a $204 million expansion project in 2006. A revised plan submitted by the hospital includes an additional expense of $45 million, for a total project cost of $249 million. While renovation work on the hospital patient tower continues, plans to renovate and expand the emergency and imaging departments and The Coastal Heart Center, all on the first floor of the patient tower, have been put on indefinite hold.

Employees and others connected with the hospital are mindful of the challenges posed by the financial situation, Barto said.

“I’m very proud of the work done by employees and board members to recognize the importance of preparing for times like this and taking steps to ensure we could continue to provide excellent health care to those who depend on us. Because of the work done already, we are able to reassure our employees there will be no layoffs this fiscal year,” Barto said.

Hospital officials will continue to be “vigilant,” he said.

“We are encouraging employees to identify additional cost savings, while still advancing the quality of care we deliver,” Barto said.

Novant Health is currently building a facility on U.S. 17 to replace Brunswick Community Hospital. Despite the company-wide financial shortfall in 2008, there are no plans to alter construction plans for the new Brunswick Novant Medical Center. The 200,000 square-foot facility will cost more than $100 million to build and is slated to open in 2010.

North Carolina-based Novant Health is also moving forward with the construction of two other new community hospitals in Kernersville and Mint Hill.

The not-for-profit health system decided not to pursue its stake in a medical office building project in Charlotte, saving $37 million.

Novant is also “closely evaluating” open job positions, along with seeking ways to save in areas like supply and equipment expense management, while “strategically prioritizing capital funding.”

Novant plans $1.5 billion in capital investments over the next five years.

“We’re better prepared for this economic storm than many other organizations,” Novant Chief Financial Officer Dean Swindle said in a prepared statement.

“We have a strong balance sheet. But adjusting to this downturn will still be challenging and, at times, painful.”