Revenues for the next year are budgeted atÊ$13,806,000, up 7.6 percent from an annualized estimate of 1999 revenues of $12,829,000.
Revenue assumptions for the budget included an increase of $1.1 million in the hospital. This is based on a 7.5 percent price increase, effective October 1, 1999, and a modest three percent increase in admissions due to continued system growth.
In the clinic, an average 6.35 percent price increase for office visits, together with increases in patient volume led to a projected $430,000 increase in revenues for fiscal 2000. The most significant increases in patient volume are attributed to the new Richmond Clinic and the newly acquired Watkins Clinic.
A modest increase of four percent is planned for 700 Stearns. The Koronis Manor is expected to show no revenue growth due to declining occupancy levels which will be offset by additional funding received from the state to support salary increases.
Expenses are budgeted at $13,450,000, up 11 percent from the estimated annualized 1999 expenses of $12,112,000.
Most of the extra expenses are based on the increases in patient volume, which necessitates increased staffing. Eleven additional, full-time equivalent positions have been budgeted, including nursing staff at the Watkins Clinic, the Integrated Health Center, the hospital and Koronis Manor. Also included are the equivalent of almost four positions in dietary, data processing, and business office.
The addition of Dr. Larry Strate in August 2000 and another physician assistant on about Jan. 1, 2000, complete the projected increase in staffing.
With an estimated nonoperating revenue of $87,000 added in, the net excess for fiscal 2000 is estimated at $443,000. This compares with an estimated net excess for fiscal 1999 of $610,000 and an actual excess of $181,000 in fiscal 1998.
Capital expenditures totalling $1,300,850 were also approved as part of the budget. The largest capital items include an advanced CT scanner, $750,000; ultrasound upgrade, $150,000; a chemistry analyzer for the lab, $75,000; and a new ambulance, $62,280. The new ambulance will utilize a new 1999 chassis and a 1996 refurbished box.
The budget was presented by Jeff Gendreau, CPA, representing Deloitte and Touche, the PAHCS auditing firm.