CLINTON — As part of the public hearing Monday for the city’s 2018 fiscal year budget, Warner Hospital CEO Paul Skowron surveyed some of the highlights of his facility’s portion of that budget.
For the upcoming fiscal year, the hospital has set a capital budget of $1,298,000. Major items that make up the majority of that include 3-D mammography equipment and suite renovations at $441,000.
“Now, this will be largely funded by donations from the Smith estate, the Davenport estate and the Dr. John Warner Foundation,” Skowron said. “Yet, we still have to include it as a capital item for accounting purposes.”
An emergency generator for the Family Medicine Clinic also falls under the capital budget at $200,000.
“This is important because we have new electronic health records technology in the building,” he said. “So, it needs a separate back-up power for that.”
About $215,000 is slated for various facility and grounds maintenance, including roof and driveway repairs, medical vacuum pump and fire panel replacement. Information systems equipment upgrades are budgeted at $131,000.
New technology crash cart defibrillators are budgeted at $85,000.
“That’s about $1.1 million of the $1.3 million capital budget,” Skowron said.
Skowron said they estimate excess revenues over expenses of about $254,000.
The hospital estimates annual gross patient revenue of about $30 million from which $12.6 million in contractual deductions from revenue such as Medicaid, Medicare, managed care contracts, uncollectable accounts and financial assistance will be subtracted. This leaves net patient service revenue at an estimated $17.1 million.
The futures of Medicare and Medicaid payments are not completely certain because of a lack of a state budget by Illinois lawmakers and the, as yet, unknown policy of the new administration in Washington.
On that, Skowron said it would take from six months to a year for the federal policy to be established.
“We’re not sure what these accountable care organizations are going to look like until the new administration and Secy. Price comes up with their policy,”
Hospital expenses for the 2018 FY are estimated at $17.5 million, including 40 percent wages, 15 percent employee benefits, 13 percent professional fees, 15 percent purchaser services and 11 percent for supplies.