The Island Hospital Board of Commissioners approved a 2013 budget that calls for 10 new full-time employees but predicts a slight drop in patient admissions and no growth in the average length of stay.
Members voted unanimously Thursday morning for a $2.7 million capital budget and $83 million operating budget that predicts more business in psychiatry, sleep studies and clinics, but no growth in emergency room visits and an 8 percent increase in the cost of employee benefits.
The hospital is on track to increase admissions by 3 percent this year from 2011. The average daily census and patient days in the hospital are both up by 5 percent from last year. But next year’s budget predicts 3,054 admissions to the hospital in 2013, a drop of 1 percent, and no growth in ADC or patient days.
Hospital CEO Vince Oliver said the conservative outlook anticipates loss of revenue from patients who may go to the new Peace Island Medical Center on San Juan Island, which opens Monday.
Oliver said Island Hospital hopes to offset the loss of business by attracting more local patients.
“We think that’s going to balance out,” Oliver said.
Total net operating revenue is expected to increase 4.2 percent from about $79.9 million this year to $83.2 million in 2013, while the budget has operating expenses growing to $83.6 million.
The hospital expects to make up the difference in non-operating income, which includes property tax revenues.
The capital budget allocates $1.95 million for routine equipment purchases and another $747,376 for informational systems.
A probable replacement of the hospital’s steam generators for making hot water is not factored into the capital budget. The hospital is looking at grants and state funding to pay for that $596,000 expense.
This year the hospital has seen more patient visits and admissions than last year in most categories (except emergency room visits), but in most cases those increases are not as much as budgeted.
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