Hospital Rate Hike at Hand?
Posted on: Tuesday, 6 September 2005, 18:01 CDT
Sep. 6--If the Onslow County Hospital Authority approves the proposed 2006 fiscal year budget, hospital patients will be paying more for services.
The proposed 2006 budget includes an 8.5 percent rate increase.
The rate hike isn't new. Last year, the authority raised rates 6.9 percent. But this year's increase is attributed to a possible decline in funding from the state.
"We anticipate a significant reduction in Medicaid funding," said Roy Smith, the authority's chief financial officer. "That's one of the key drivers of our proposed 8.5 percent rate increase."
The authority is expecting to lose about half of the funding, which is about $816,000, it receives from the state's Disproportionate Share program. The program is a Medicaid reimbursement initiative designed to offset costs hospitals absorb when uninsured patients are treated.
The authority will make a decision about the budget, including the rate increase, at its next meeting Sept. 29. Its 2006 fiscal year begins Oct. 1.
The authority is expecting to see financial improvement in several areas in 2006. Its days cash on hand is projected to increase from 87.9 days to 95.7 days. In the authority's 2000 fiscal year audit, there were only 17 days of sufficient operating cash on hand.
Days cash on hand refers to the number of days the hospital can operate on its cash reserves.
Business is also expected to increase in 2006 for both inpatient services, at 1.3 percent, and outpatient services, at 2 percent, said Smith who characterized it as "modest growth."
The authority's total expenses are expected to increase by about $1.3 million from $85.2 million in 2005 to $86.5 million. Revenue is projected to increase from $1.9 million in 2005 to $2.5 million in 2006, according to the budget.
While the authority has battled rising malpractice insurance premiums in the past, the 2006 budget projects only about a 1.7 percent increase.
There is about $3.6 million set aside for capital equipment in 2006. The most costly purchases planned include about $547,285 designated for the lab expansion; $653,000 for a computer information system for the pharmacy department; $218,722 for a mobile C-arm in the radiology department; and $354,068 for nuclear medicine cameras, according to the budget.
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Source: The Daily News
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