RCH approves levy rate increase
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Ringgold County Hospital’s board of Trustees met for presentation of the fiscal year 2022 budget and approval on Monday, March 8. The budget meeting was followed by the regular monthly board meeting.
Chief financial officer, Missy Walter outlined and explained various budget increases and decreases noting, “It was an odd year with the event of Covid 19, making numbers hard to trend.”
Projected gross patient revenue is set at $31,245,79 with Walter citing more in-house labs, a full year of cataract surgery revenue, the addition of the pain clinic, anticipated increase in Senior Life Solutions with the new track to be available and a full year of orthopedics moving from the visiting physicians clinic to Ringgold County Hospital to account for the increase. The net patient revenue also reflects a projected increase in bad debt and charity cases, along with contractual and administrative adjustments to come out with a final net patient revenue amount budgeted of $22,757,558.
Operating revenue changes show a projected increase with the addition of the 340 B program agreement with Medicap and a decrease to operating revenue due to the loss of rent paid by Southern Iowa Orthopedics. Total operating revenue budget is $24,418,890.
On the expense side, the FY2022 budget shows a 3% increase in general payroll wages, with an amount more than 3% for nursing wages to bring wages more in line with peers. Budgeted wages also allow for positions currently vacant. Rounding out the list of projected increased costs for FY2022 are: 10% for benefits for additional employees, 7% for health insurance premiums, 32% for maintenance cost, 6% for service fees, 13% for utility costs, 5% for a new provider, 4% for building insurance and indicated increases in both IPERS and FICA payouts.
Walter informed the board the county tax ask will also be increased for the first time since 2003, with a 7% change in levy rate. Walter pointed out the rate increase is still only 53% of the amount allowed for an adjusted tax asking of $1,452,313. After a brief discussion by the board the budget was approved as presented. The budget meeting was adjourned and the regular monthly board meeting brought to order.
Dr. Bruce Ricker, chief of staff, started off the monthly meeting with an update on the new physician, Dr. Scott Bland, who will begin practicing at Mount Ayr Medical Clinic in late July or early August of this year. Ricker stated Dr. Bland and family are planning to look for houses possibly in May and stated Dr. Bland is, “very excited to move to Mount Ayr and get to work!”
Missy Walter presented the February financials describing the month as “normal” and “pretty much on target” with “few issues other than being a couple of days short” of a normal month in terms of income and expenses. The month ended with a net patient revenue of $1,233,723, under-budget by $417,386, total operating expenses were $1,587,529 under-budget by $324,558 resulting in a year-to-date loss of $74,655.
Walter noted a few numbers in a downward trend for income, stating in-patient revenue was under budget by $103,278, out-patient revenue was over-budget by $84,307 and primary and clinic revenue was under-budget by $32,920. Patient visits were under-budget by 200 and overall gross revenue was under-budget by $51,891.
Operating expenses also trended downward but for a positive trend with salaries and wages under-budget by $130,222, contract labor under-budget by $81,942, fees under-budget by $124,942 and depreciation under-budget by $8,962. Benefits did go above budget by $40,973 due to rising self-insurance costs along with increased supply numbers for pharmacy, oncology drugs, bulk 02 and blood bank supplies.
Walter also updated the board on the Payment Protection Plan loans received and eligible for forgiveness. The application for forgiveness of the approximate $1.9M in funds received has been submitted. Walter stated, “There is a 60 day mark for receiving notice on the status of forgiveness. Ware waiting on the SBA to approve.”
Gordon Winkler, administrator finished out the meeting giving a report on on-going construction with the hospital pharmacy remodel and additions and remodels for two other major components of the project—the new retail pharmacy and Senior Life Solutions. The retail pharmacy has been enclosed and weather proofed with ducting and mechanical runs in progress, data and HDMI lines in process, 80% of sub wall completed and the building prepped for heating and cooling. Millwork is on schedule, carpet is on back order and furniture has been ordered for Senior Life Solutions. Reporting on the hospital pharmacy remodel, Winkler shared that pipe fitting is finished, ceiling installation, taping and mudding were nearly done and painting was to begin. All projects are back on schedule after extreme weather caused delays.
