By JEFFERSON WEAVER
Staff Writer

Trustees for Columbus Regional Healthcare have approved a budget calling for a three percent across the board increase for salaries, rates, and expenses for the next fiscal year.

The board approved its fiscal year 07-08 budget Aug. 22 at its regular meeting. Unlike governmental agencies, Columbus Regional starts its fiscal year in October, rather than July.

William Clark, president and chief executive officer for the hospital, said the increases are the hospital’s attempts to keep up with projected increases in losses due to adjusted payments by Medicare and Medicaid, as well as private insurers. Bad debts and indigent care also are on the rise, with no end in sight.

Next year’s budget, as approved Aug. 22, projects a total of $172,659,404 in revenue. In-patient care will bring an anticipated $93.594 million to the facility, with $79.659 million from outpatient services. The hospital projects $6.604 million in additional revenue in the coming year.

On the down side, partial payments on government reimbursements for Medicaid and Medicare, referred to as government contractuals, will cost the hospital an anticipated $73.986 million next year. Contractuals from private insurers, which are supposed to be paid by the patient, will cost an anticipated $18.509 million in lost revenues.

Care for indigent patients – those who have no ability to pay – will cost the hospital $5.465 million next year. The hospital also anticipates writing off $7.832 million in bad debt.

Even including $725,726 in revenue from other sources, Clark explained that the hospital has to produce $172,659,494 to make $75,423,895 in revenue.

“These are just the facts of life with a public hospital,” he said.

A cost-efficiency program instituted by the hospital is making a difference, he said, noting that some departments have found ways to save thousands of dollars by taking better advantage of group purchasing, and changing services. The entire hospital staff is continuing to search for ways to cut costs while preserving the quality of care, he said.