Recommendations for the FY 14 budget presented to the PMC Hospital Board
The Petersburg Medical Center Resource Committee reviewed various requests for capital items over several sessions that were recommended to the PMC Hospital Board during its regular meeting Thursday evening.
PMC Chief Financial Officer, Leon Walsh, explained the recommendations to the board.
“For the capital budget the total request is for $1.285 million and the committee is recommending $815,000 for approval and $31,000 to be replaced if the existing unit fails during the year,” Walsh reported. “The major item that the committee recommends proceeding with is the electronic medical records, CPSI, at $700,000.”
Walsh explained that other items being recommended are relatively small: $18,000 for glide scope beds; an upgrade to the ultrasound machine of $50,000; $11,000 for a microbiology refrigerator and a microscope at $10,000.
The grand total of those is $815,000.
Walsh moved forward to the operating budget for fiscal year 2014 with gross revenue being budgeted at $15,749,000; contractual adjustments at $2,025,000; net revenue of $13,724,000; operating expenses of $13,553 for a net operating gain of $171,000 and non-operating income of $190,000 and a net gain for the year budget of $361,000.
“2014 is a rebasing year for Medicaid long term care which is 85 to 90 percent of revenue out of long term care and it would be to our benefit to have a high cost year because of the reimbursement rate that gets set in 2014,” Walsh stated. “There are other issues that have come up that require that we defer that situation until 2015.”
PMC Board Member Rocio Tejera explained that there will be an employee wage increase of two percent.
“At the same time the insurance costs are increasing 30 percent and we are passing some of those costs to the employees,” Tejera stated. “The employee deductibles are increasing $1,500 and the premiums are increasing five percent.”
Employees’ insurance costs will increase from 10 percent to 15 percent.
PMC Chief Executive Officer Liz Woodyard also explained that some increases in charges are for travel for doctors and nurses training.
“We do not have local classes for them to retain certification,” Woodyard said.
Abbott had one main question of $199,000 for travel and asked if that was an increase from 2013 or remained close to the same.
“It is a bit of an increase,” Walsh stated. “That increase is mainly for training in Alabama for the CPSI system.”
Each of the board members agreed to take a look at those who do travel and see where costs can be cut in the future.
The recommended fiscal year 2014 budget was approved unanimously by the PMC Hospital Board.