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The current fiscal year ends on Sept. 30, 2001. The 2002 fiscal year runs from Oct. 1, 2001, to Sept. 30, 2002.

The budget includes revenue projections of $18,775,000 with expenses totalling $18,499,000. Anticipated nonoperating revenues of $42,000 brings the expected profit for 2002 to $298,000.

PAHCS had a profit of $746,000 in 2000 and anticipates a profit of $259,000 for 2001.

Revenues for 2002 are budgeted at $18,755,000 compared to a projected $17,262,000 for 2001. Increases in hospital rates by 10 percent and clinic rates by six percent, effective Oct. 1, 2001, help fuel the $1.5 million revenue increase, along with anticipated increases in volume (the number of patients served by PAHCS).

A modest increase in revenue is expected from a three percent increase in Medicaid rates and a slight increase in occupancy in the Koronis Manor.

Residents of 700 Stearns Place will see a five percent increase. Rates at 700 Stearns Place were not increased last year.

Expense increases will largely come from rising salaries and wages. Recently, nurses in the Twin Cities increased their pay after settling a strike. Labor for health care continues to be in demand as well.

Employee health insurance is also increasing by 10 percent, and PAHCS expects to add the equivalent of six and a half positions.

The capital budget of $969,000 mainly goes to address technology needs in the system.