The Union Hospital District fiscal year 2010-2011 budget was passed at an emergency board meeting held immediately following a hospital district finance committee meeting last Thursday.

During the finance committee meeting, District Chief Financial Officer Jim Barmes presented the July Financial Report. He stated the total revenue for the month was $4,415,000 with operating expenses coming to $4,851,000, resulting in a $436,000 loss.

From October 2009–July 2010, revenue totaled $43,662,000 with operating expenses coming to $44,149,00, resulting in a loss of $487,000 for this fiscal year.

Immediately following the finance committee meeting, an emergency meeting of the full hospital district board was held in order for Barmes to propose the FY 2010-2011 budget for approval. He addressed issues such as economics and demographics in Union County, discussing unemployment rate and decrease in population. A major forecast of increases and decreases in the way of quality and service, people, finance, growth, opportunities, risks and challenges was also presented.

Interim CEO Dr. Bob Barber addressed 10 factors to be critical in the upcoming fiscal year:

• Recapture 1 to 1.5 percent lost market share in 2011.

• Increase volumes by 1 to 1.5 percent in 2011.

• No further increases in Self-Pay volume and bad debts.

• Any Medicare and Medicaid RAC audit adjustments do not exceed reserves.

• No additional Medicare/Medicaid recoupment beyond amounts reserved.

• Maintaining Case Mix Index above 1.03.

• Control growth in employee benefit expenses.

• Achieve MAP cost savings.

• Reducing ALOS to 3.78.

• Reduce FTE’s per adjusted occupied bed to 3.78 in 2011.

The budget proposal passed by a narrow 4-3 vote. The target goal for the upcoming fiscal year is to have $19,000 excess revenue over expenses.