Hospital district approves budget for fiscal year 2000
The Tahoe Forest Hospital District Board of Directors approved a $36.2 million operating budget and expenditure plan for fiscal year 2000 – with a projected $3.58 million total net revenue, based on net income from operations and district taxes and interest out of over $37 million in total net operating revenues – at the board meeting Tuesday.
“There are not a lot of changes in this year’s budget. We feel we’ve had a very successful year. Our operating plan has allowed us to give significant health services and we’re building on that,” said TFH CEO/Administrator Larry Long. “We’re very optimistic about the year ahead.”
Some of the newer areas the district plans to make service enhancements on next year include:
– Development of a new community resource center
– Launch of a community relations program
– Licensing of hospice and reentry into Nevada for home health services
– Technology upgrades in nuclear medicine and ultrasonography
– Addition of advanced laparoscopic procedures
– Dental services
The financial plan for the fiscal year 2000 budget achieves the board policy of realizing a 10 percent return, $3.58 million, on the district’s equity or worth of $37 million. District staff also project the total cash fund balance will increase by $5.4 million at year-end, due mainly to an enhanced collection of patient accounts in the amount of $4 million.
“The accounts receivable account got bigger and we weren’t billing as effectively. This year we will get caught up with our billing,” said Long.
Other budget projections include:
– Inpatient volume increase by $1.3 million
– Outpatient volume increase by 0 to 14 percent
– Other operating revenue – including retail pharmacy, medical office building, children’s center and cafeteria – increase by $115,500
– Deduction from revenue will decrease by $916,000 (mostly connected to reserve for bad debt)
– Total operating expenses will increase by more than $2 million when interest expense is offset by interest income
– District tax revenue increase of $50,000 to $1.75 million
– Interest income will increase by $639,000
TFH board members also approved 3 percent patient fee increase to offset projected inflation.
“The cost of resources goes up each year. This year it was estimated to be about 3 percent,” said Long. “Only about one half of people who pay for health care actually recognize the increase. Medicare and Medical represent about 40 percent of those paying for health care.”
Unrelated to the budget, board members approved the appointment of Long as the negotiator for potential real estate negotiations on 1.51-acres of property behind the hospital in Incline Village, located at 881 Northwoods Blvd.
“I’m now in charge of investigating the particulars. I will get the findings and report back to the board and discuss how it may be advantageous to the district if we purchased it,” said Long.
The piece of property is for sale, and has a value that is unknown, he said.
Long said no other information regarding the potential negotiation was available at the time.
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