The Paynesville Area Hospital District Board reviewed the 1998 budget at a special meeting Friday. Jeff Gendreau and Jeff Radunz of Deloitte and Touche, hospital auditors, went over the budget for the board, explaining the projected revenues and expenses for 1998.
ďThe hospital will need to make an increase in contractual adjustments of four percent due to one percent decrease in the hospitalís expected Medicare reimbursements,Ē Radunz said. ďBecause you raise the prices doesnít mean you will see the money. A lot relies on the fixed payer like Medicare and Medicaid.Ē
A one percent margin leaves little room for error, Radunz told the board. ďExpect to see more payment reductions over the next year or two from Medicare and Medicaid,Ē he added.
The hospital is expected to see a 7.4 percent increase in revenue from 1997 to 1998 and an increase of 6.2 percent in expenses. The net income is anticipated to be about $188,000 compared to $82,000 in 1997.
ďIn looking at national indicators, the Paynesville Area Hospital is making progress in the right direction,Ē Radunz said. ďYou are having some of your best years right now.Ē
Radunz added the board needs to look at new ways to enhance productivity. The new CT scanner will be quicker and by starting to automate medical records will provide better service to the patients and doctors. This will take a couple of years to complete so all the clinics and hospital are integrated.
ďThe physicians time is valuable and you need to look at getting computers in every clinic and lab,Ē Radunz stressed.
ďWe reviewed more than $1.5 million in items requested by the staff and approved purchasing a new CT scanner at $400,000; air conditioner, $50,000; and shoulder equipment for the emergency room, $20,000, to name a few,Ē Willie LaCroix, hospital administrator, said.
The auditors told the board the purchase of the clinics this past year were positive things for the hospital district. ďThe clinics are a significant component in the revenue growth of the hospital and you need to look at other services you can offer,Ē Gendreau said.
ďYour biggest asset right now is the strength of your physician group, as they are all younger,Ē Radunz said.
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