The Ritzville Adams County Journal - Eastern Adams County's Only Independent Voice Since 1887

By Brandon Cline
Managing Editor 

Hospital Board expects revenue jump in 2020 budget

New projections show district is expected to see a total net loss of $1.88 million in 2019

 

Last updated 11/7/2019 at 12:18pm

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East Adams Rural Healthcare.

The Adams County Public Hospital District No. 2 Board of Directors approved its 2020 budget at its Oct. 23 board meeting, clearing the annual budget hurdle a month earlier than last year. The board also reflected some on the 2019 budget and how this year has actually played out.

2019: A wide gap between expectations and reality

The board is hopeful that the actual figures in 2020 will more closely align with the 2020 budget than this year's figures have with the 2019 budget, which saw an almost $2 million negative difference in what the 2019 budget projected vs. what has actually happened this year.

Actual total operating revenue this year appears to be coming in well below what the 2019 budget projected. According to updated figures in the newly approved 2020 budget, the new projected total operating revenue for 2019 is now set at $7.1 million, about $2.28 million (25.7%) lower than what was budgeted for.

Both inpatient and outpatient revenue in 2019 have been significantly lower than what was projected in the 2019 budget. The budget projected inpatient revenue at about $1.82 million, and the newly updated figures project just $1.04 million in inpatient revenue this year, a decrease of about $780,000 (44.68%).

In regards to outpatient revenue, the 2019 budget projected $8.82 million this year. Newly updated figures, however, show that outpatient revenue is projected around $7.75 million, a decrease of about $1.07 million (12.13%) than what was budgeted for.

In more positive news, total operating expenses in 2019 have mostly aligned with what the 2019 budget projected. The budget for this year projected $10.6 million in total operating expenses, and the updated figure provided in last month's 2020 budget projects $10.38 million in total operating expenses, representing about $220,000 in savings.

All said, including the $1.4 million the district is projected to receive in non-operating revenue, the district is now projected to see a total net loss of $1.88 million in 2019. The 2019 budget, when it was approved by the board around this time last year, projected a total net surplus of $57,191. That's about $1.94 million lower than what the budget projected, and $1.74 million lower than in 2018, which saw a total net loss of $145,406 on the year.

2020: Getting back on track

The 2020 budget seeks to get the hospital district back on track financially. East Adams Rural Healthcare officials believe that several new provider additions in 2019-physician's assistant Julietta Shapiro, Dr. Anthony Anderson and nurse practitioner Julie Trofibio-will give the district a much-needed shot in the arm in terms of revenue.

"I think [CEO Corey Fedie] is heading in the right direction in getting these providers in here, and I think that's where we're going to make our money," said chief financial officer Gary Bostrom. He added that the district is looking at adding another provider at EARH by January of 2020.

Total operating revenue in the 2020 budget is projected at $9.56 million, which would be a $2.46 million (25.7%) increase over the $7.1 million that the district now projects to receive in total operating revenue in 2019.

"I think you guys did a good job [on the budget], but just so everyone knows-I'm an optimistic guy and I believe in this-basically we've got to bump up our revenue $2.5 million to operationally lose $1.3 million to have a net profit at the end when you figure in the non-operating revenue," pointed out board member John Kragt. "I think it's doable and I'm all for it. I believe in it. We've just got to get the work done and get [the payments] collected."

If the 2020 budget hits its marks in total operating revenue and total operating expenses ($10.88 million), it would still operationally have a net loss of $1.32 million. However, $1.43 million in non-operating revenue-such as interest income, grants, tax subsidies and the EMS Levy-has been budgeted for next year, which if met as well would give the district a total net surplus of $105,720.

 

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