Hospital board adopts 2018 budget

    “He has worked three years in one year for us,” said Melissa Memorial Hospital CEO Trampas Hutches, complimenting CFO Wes White who presented the proposed 2018 budget to the East Phillips County Hospital board Monday, Nov. 27.
    The board adopted the operating and capital budgets as presented by White, including certification of the mill levy and appropriation of funds for operating and capital budgets and debt service.
    There are several projects MMH plans to complete in 2018, said White, including the conversion of the human resource and payroll system to KRONOS, effective the first pay date in January. The hospital will also implement the Caravan Accountable Care Organization to facilitate population health management and implement the new Medicare reimbursement program for providers.
    White noted that the reporting out of the new Athena electronic medical record, patient billing and collection system is phenomenal and impressive. Comprehensive implementation of Athena will continue in the coming year. The management team at MMH is impressed with the new system and the improvements in financial metrics, he added.
    MMH is also planning to implement JumpStock materials management system and Intacct, a general ledger and financial reporting system, noted White.
    The budget includes a 6 percent general rate increase in the hospital charge master. Volumes are budgeted to increase by 29 percent in outpatient surgeries and minor procedures, anticipating 88 cataract surgeries. Inpatient surgeries are expected to increase 800 percent, assuming 12 major joint replacement surgeries in 2018, White reported.
    Hometown Pharmacy total prescriptions are expected to increase 26 percent to 4,302 for a full year of operation. MMH foresees a 143 percent increase in eye care clinic visits to 973 for a full year of operation and cataract patient care, he added.
    Changes in operating expenses for salaries and wages include a 3 percent on average cost-of-living increase. Employee benefits increase due to a rise in hourly pay rates and additional staff. Professional fees increased for specialty providers such as the orthopedic surgeon.
    Hutches pointed out that there has been significant growth over the past two years, anticipating an 18 percent increase in total revenues less deductions in 2018.
    The operating budget was presented on an accrual basis with total net revenues of $17,337,762, total expenditures of $16,877,762 including a mill levy certification of $947,650 and a capital budget of $525,161 with debt service of $525,752.
    The board adopted a mill levy of 13.70 mills based on an assessed valuation of $69,171,560, to generate the $947,650 in revenue.
    Other discussion and action from Monday night’s board meeting will be published in next week’s Enterprise.