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Hospital board considers 2006 mill levy increase years ago

Staff reporter

The board of directors of Marion County Hospital District #1 discussed the 2006 operating budget Thursday evening and determined more efforts are needed to increase hospital revenue.

Greg Bowers, board treasurer, asked the board for direction in preparing the budget with hospital officials and auditors.

Board member Peggy Blackman asked if the current mill levy could be increased for capital improvements.

Board member Martin Tice said he would like to see the mill levy remain level with no increase.

Suggestions were made to have St. Luke Hospital Foundation conduct a fund-raising campaign for capital expenses.

More discussions indicated the need to educate members of the foundation or hire someone to spearhead a campaign.

Board member Judy Reno asked if another physician was necessary since the area's population appears to be decreasing.

Hospital administrator Thom Smith said a recent study, conducted for the hospital's strategic plan, indicated the need for at least an additional part-time physician.

Tice said the district hasn't operated the hospital independently for yet a year and there was a need to generate more income through doctors and their services.

He added the district has had to use foundation funds for operating expenses.

Bowers asked Smith the financial status of the facility.

Smith said that referral patterns and amount of work load of patient care has had a significant impact on the hospital's finances.

The statement was made that inpatient volume has dropped 50 percent since last year.

"If we raised the mill levy 10 mills, it wouldn't dig too deep into taxpayers pockets," said Blackman.

"We can't do that without showing some results," said Smith. "We need to make sure the appropriate providers are in place."

Smith continued that the board and administration are going to have to make some "tough decisions" and will need support from the community.

Blackman said that in the past, the foundation had received generous donations but no efforts were being made to increase donations.

"Volunteers don't have time to do it," said board president Gene Winkler. He added he didn't know what the expense would be to hire someone to oversee fund-raising.

Additional discussion followed regarding a mill levy increase. More information will be provided to the board regarding a mill increase and the impact it could have on the hospital's budget and taxpayers.

In other business:

— The board approved bills for $85,412.

— Acting chief financial officer Hank DeBragga reported revenues and expenses for June.

Total revenue was $390,482. Total expenses were $508,911 resulting in loss of $118,428 of operating revenue. Overall, net income for the month was $34,632 due to other non-operation income.

Year-to-date budget totals show an actual revenue of $4,966.

— A third-year family practice resident physician recently visited the hospital, clinic, and community. The physician currently is living and training in Wichita but would like to practice in a smaller community. He has children who reside in Wichita, so would like to be located close to them.

He will complete training in 2006.

Smith said if a part-time physician could be secured for a year, this would work out with this physician.

Another resume was received by Smith from a physician from Colorado who just completed school.

— A surgeon from Memorial Hospital of McPherson recently met with Drs. Don Hodson and Kim Hall. The surgeon said he would do exploratory procedures with scopes, and wants to continue to provide the same services as Dr. Stephen Cranston.

— DeBragga advised the board that Medicare does not want to pay for patients' treatment without a diagnosis. There have been situations where patients have decided to have procedures completed with approval from Medicare, and now are being billed.

He explained he will attempt to collect the debts.

— A report from Kevin Fruechting of St. Luke Hospital Foundation was reviewed. The foundation has a checking account balance of $1,516, and $118,705 in a money market account.

— A report also was reviewed from Eileen Sieger, treasurer of St. Luke Hospital Auxiliary.

During the month of June, the auxiliary paid $1,065 to County Seat of Marion, for carpet and installation of the carpet in the hospital lobby. Following expenses and income from for the month, the auxiliary has a balance of $8,112 in its checking account, and $1,026 and $1,028 respectively in certificates of deposit.

— Rebecca Jackson has been hired part-time in dietary, and Bev Reid full-time as controller in the business office.

Jerry Ewing was promoted to lead radiology technician, and Stacie Smith will provide marketing services on a part-time basis.

— A special meeting will be called regarding the hospital's budget.

The next meeting to approve accounts payable will be at noon Aug. 11 in the clinic basement.

The next regular meeting of the hospital district will be at 7:30 p.m. Aug. 23 in the clinic basement.

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