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HomeMy WebLinkAboutRes1991-011 . . . sponsored by: Schaefermever CITY OF SEWARD, ALASKA RESOLUTION NO. 91-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING BUDGET REVISIONS TO THE FISCAL YEAR 1991 HOSPITAL ENTERPRISE FUND AND REQUESTING OPERATING AND CAPITAL EQUIPMENT LOANS WHEREAS, since the operating budget of Seward General Hospital was approved by the city council in June, 1990, a number of changes have been made which significantly affected the operations of the hospital: and WHEREAS, cash flow proj ections prepared in October, 1990, indicated the hospital would not have enough cash to continue its normal operations beyond January, 1991: and WHEREAS, immediate capital equipment needs have been identi- fied by the community Hospital Board: and WHEREAS, the Community Hospital Board approved Board Resolu- tion No. 91-002 recommending that the City Council approve operating and equipment loans to the hospital totalling $147,000; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: section 1. The Hospital Enterprise Fund Revised Budget for the fiscal year beginning July 1, 1990, which is attached and incorporated herein by reference, and which contains estimated hospital revenues and expenditures for Fiscal Year 1991, is hereby adopted. section 2. The City Manager is authorized to establish an operating loan fund, appropriating monies from the General Fund Fund Balance Account No. 101-3070 to the Hospital Enterprise Account in an amount not to exceed $100,000 to be repaid with interest at the rate charged by the city to other enterprise funds no later than July 31, 1992. section 3. The City Manager is further authorized to establish a capital equipment loan fund, appropriating monies from the General Fund Fund Balance Account NO. 101-3070 to the Hospital Enterprise Account in an amount not to exceed $47,000, such monies to be repaid with interest at the rate charged by the city to other enterprise funds in sixty (60) monthly installments. section 4. This resolution shall take effect immediately upon its adoption. -1- CITY OF SEWARD, ALASKA RESOLUTION NO. 91-011 . PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 28th day of January, 1991. AYES: NOES: ABSENT: ABSTAIN: THE CITY OF SEWARD, ALASKA ~ BURGESS, DUNHAM, MEEHAN, SIEMINSKI & NOLL NONE HILTON KRASNANSKY ATTEST: .~lirphY' City Clerk (City Seal) APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska . 7~ t\J ~ Fred B. Arvidson City Attorney -2- CITY OF SEWARD, ALASKA Resolution No. 9I-01I . SEWARD GENERAL HOSPXTAL REVXSED OPERATXNG BUDGET VEAR ENDXNG ~UNE 3D. ~8.~ . I. I I ATTACHMENT A . . . SEWARD GENERAL HOSPITAL REVISED OPERATING BUDGET FYE JUNE 30. 1991 Since the operating budget of Seward General Hospital was approved by the City Council in May 1990, a number of changes were made which significantly affected the Hospital's operations. The primary changes are: - A management contract was signed with Brim & Associates for management of the Hospital. This con~act went into effect August 1, 1990. - The change in the administration of the Hospital. - The Hospital no longer provides laundry services to Wesleyan Nursing Home. - Weekend emergency room physician. - The Hospital has been unable to recruit a physical therapist or a CRNA. Recruitment efforts continue for these positions; in addition, the Hospital has decided to take a more active role in the recruitment of an additional physician. Cash flow projections prepared in October indicated the Hospital would not have enough cash to continue its normal operations beyond January 1991. A revised operating budget which demonstrates the effect of the various changes in the Hospital operations has been prepared. The revised budget indicates that instead of an approximate $76,000 net income for the year, it is estimated the Hospital will have a loss of $127,200, a reduction of approximately $200,000. A discussion of the changes follows. PATIENT REVENUES - <$315,700 decrease): The primary reason for the reduction in the gross patient service revenues ;s a reduction in estimated inpatient days. In the approved budget it was estimated that in FYE 1991 the Hospital would have 1180 inpatient days of service. The number of estimated inpatient days has been revised to 920. The anci llary services which relate to inpatient care, especially the pharmacy, have also been reduced. The reduction in services has been partially offset by an additional 51 across the board increase in rates that went into effect on January 1, 1991. (This is in addition to the 51 increase effective July 1, 1990.) Outpatient and emergency services remain consistent and there has been decrease in the revised budget for these services. Emergency room service income has been increased for the emergency room physician who has been contracted for weekend service since December 1990. Anesthesiology and physical therapy revenue have been decreased as these departments are still not operational. DEDUCTIONS AND ALLOWANCES ($97,500 decrease): The contractual allowances for decreased by approximately $150,000 due the change . . . in the rate the Hospital is paid for a "DRG." Due to a change in regulations affecting Alaskan rural sole community providers, the Hospital will benefit from a significant increase in the amount it is paid for inpatient care. This rate went into effect on July 1, but payments at this rate were not received until January 1991. The estimate write-offs for bad debts and charity care has been increased by $53,000. OTHER OPERATING REVENUES ($42,400 decrease): The revised budget indicates a decrease in other operating revenues of $42,400. This is due to the Hospital no longer providing laundry services to Wesleyan Nursing Home. Also, the hydroelectric system is no longer operating; therefore no "power generation" revenue will be received. OPERATING EXPENSES ( $2 , 100 i nc rease ) : Salaries - $154.700 reduction: Please see the schedule of "Salaries by Department" which details the revisions in the budget to the salaries. EmDloyee benefits - $71.800 reduction: The reduction is due primarily to the reduction in salaries, but the amount budgeted for workman's compensation has also been reduced. HanaQement contract - $72.300 increase: This is the estimated cost for FYE 1991 of the Brim management contract which went into effect on August 1, 1990. Professional fees - $55.100 increase: A weekend emergency room physician was contracted as of December 31, 1990. The increase in this category relates primarily to this service. SUDDlies - $36.800 decrease: This decrease relates to the reduction in Hospital inpatient services. Purchased services - $113.600 increase This category includes the cost of the new administrator. It also includes the increase in major repairs to the building. Other - $21.100 increase The cost of recruiting a physician has been added to this category. . . . NONOPERATING REVENUE (EXPENSE) - ($59,728 increase): The majority of the increases in the non-operating revenues have already been received. A .i2,000 grant was received from the State; a .13,500 reimbursement was received f~ Exxon; the Council approved a contribution of $8,000 to pay for furnace repairs; sales tax true-ups have been made. Interest expense has been increased for the estimated amount of interest that will be owed to the City on the working capital loan 1f 1t 1s approved. . SEWARD GeNERAL NCl8PITAL REVISED I'VE III' IUDGET IUIlGI!T lllMWtY ,--------------------------------------------------------------------------------------------------------------------.. , , ~N_ 1110 ~ua1 YTD Nov 10 (5 _) III' _roved IIudVft 1111 Chan.. F,... AppI"OVH Pan:ent cnan.,. Prapa.." R8vi.ion 1--------------------------------.1-------------'---__________1_____________,_____________,.____________1____________.1 I I t If. I I Patient ,..venuea 12.233.308 "'1.771 '2.501.000 '2.115.300 (1315.700): -12.5ZS: La..: DaGuctlana . a11o._ 350.752 115.42' 211.000 1".500 ('7.500) : -32. UII: ------------. ------------: -----------, ------------: ------------: ------------: , . Nat pat lent "",,'ea ,.avenue 1.'11.551 , 701.35' . 2.205.000 . 1......00 (211.Z00): -1.101: . . . 01;".,. apa,.attne ,..vanua ".774 , ".012 . !II . 700 , 51.300 (42.400) : -45. ZSII: . . . ------------, -----------~ -----------, ------------: ------------: ------------: . . Nat apa,.at1ne rav_ 1.971.330 . 711.313 . 2.21'.700 , 2.01'.100 . (210.500) : -11.341: . . , , OIHI,.atlne a)lf:lenM. 2.551.111 , 1.012.772 , 2.727 ..00 . 2.721.100 . (2.100) : -0.011: . , . . ------------: ------------: ----------; ----------: ------------: ------------, , L_ ,... apa,..t1ana (517.211) : (371.410) : (421.100) : (111.100) : (251.500) : 10.241; Nan__ratlne ,..venuea '0'.471 . 370.51' , 504.'12 . 514.100 . St.721 , 11.531; . . . . , ------------, ------------, -----------; --------: -----------; ------------: . . Nat t~ (1_) Slll.11G . (12."2): '75.772 . (1127.200) : ""'.7721: -252.331: . . :=====.....................==.....:.............;.............;.............;.............;.............::.........=:=: . . . SEWARD GENERAL HOlSPITAL RI!VISI!D I"fE '111 IIUDGaT PATIENT SERVICE RI!VENUES :z=za.za..a.......................:.............:.............;.............;=............:z====z=======:======::::::=: . . sewARD OIHEUL IIOSPtTAL REVISlD I'VE ,.., aIDCIIT OTHU OPERATING REVEHUU ,___________________________A . ----------------------------------------------------------------------------------. , Ac:count ,... ,.10 ,,"ua 1 YTD Nov 90 (5 _I ,.., Approv'" IudtH ,.., '1 ~~u... ttevt.tan CNn.. II". Approved PeF'C8l'l1: ctIan.. :---------------------------------:-------------:-------------:-------------:-------------:-------------:-------------: ....,.. .,.e1:. , _'oy_ "7.410 '12.212 '12.400 P2.4OO 0 . O.OOS: . Launclry rev_ 34.10' 0 31.000 (311.0001: -100.0OS: T.,__ ,.."... 514 271 100 100 0 . o.OOS; . '"-r ..-rattan 15.447 0 11.000 (111.000) : -100.0OS: Neclt ca 1 .--r\ltns ,_ 577 114 700 700 0 . O.OOS: , Ott.r .t_ll__ rev_ ZI 5,211 11.000 17.1100 11.1100 . 1.3.3311: , -----------: ------------: ----------: -----------, _________ I -----------, . . . OTHU OPERATING REVENUU ....774 . "1.0'2 . II. .700 I "' ,300 , ('42.400) : -45.2511: I . I , :==.............................................:.............:.............1.............:.............:.............: . . . SlWAIlD GBIIIW. HCIIPITM. HVUID 1"11 111' IUDCIIT EXP.... lIl.MIAItY :-------------------------_.~ . --------------------------------------------------------------------------------: Accoun1: If-. ,.10 ~ual VT1) Nov 10 (5 _) ~ "". ArlPnrvecI 1111 """rav. IIucIWft 1111 PrallulII Revtaton :_________________________________'_____________:_____________'_____________1_____________'_____________1_____________: Pen:.nt ChIInve !XPIHSI SUMMMY Sa1.rt.. 11.205.711 ..... .271 11 .304.300 11.14'.100 ('154.700) _'oYM ~tu ....0.. 140.344 440.100 U' .300 (71.100) Mana..-.c coMrK1: 32.117 n.300 72.300 Proi'_t_1 f_ 14'.ln ".021 "'.000 240.100 . 51.100 SuppH_ "'.211 111.517 34'.100 311.110 (U.IOO). Pvn:t'-.... ...-vtce. 234.742 102.U' 212.100 311.100 111.100 ~ 12.111 2. ..00 ".100 11.100 0 Deo.-.c t.t t on ".7" 34.310 .. .000 ".300 3.300 ou.r I'.ua 11.220 10 .300 111.400 21,1. : --------- : --------: ---------: -----, --... .... TOTAL ClPIItATIHG EXPltlIU .,.SS...,,: ".0".148: 12.727.100: 12.71'.100: 11.100 : :.................................:.............:.............:......---....:.............;.....-- -I. . . -11.IIS; -1I.31S; 21.7IS; -10.13S: 53.3IS; 0.001I: 3.IIS; n.31S: _____1 . O.oes; -.-...: ,-~--------------------- SlWMD CllNIIIAL HClIPrTAI. ftVDID I'VI 1111 IUlllIEr IALMlD IV DCPMTMIIIT v______________________________________________________________--------1 , ~H.- 1110 llc1:ua 1 YTD New 10 (5 _) 111' Approved ~ 111' "'~UI'" Revtatan ~ ",.. Approvecl Percent CharI.. :---------------------------______1______-______1____-________:_____________'_____________._____________:_____________: SALAllta DIPAR1'MeNT : -Medtcal/Sur,teal 1..,.27. 1111.'" I..' .000 1.0.'00 (I" .100l: -5.1I1S: eerrtral IllPPly 15.'" 7.8'2 11.200 11.200 o : O.OOS: PharMcy 10.14' 4.271 11.100 1.000 (7.500): -45.45S; LaDoraqry 11.2" 42.1111 102.100 II .000 (..1001: -1I.11S: RUt.l.., ...... 17.2H '7.000 .7.000 o : O.OOS: ",.....1.1.., . RMIItraqry VlenIpy '.750 '82 SI.IOG 1..100 (4..700): -7I.42S: Phyatea 1 1:her-'y 11...2 .'.700 1..000 (11.700) : -1IS.1I8S: Dt nary II .101 27 .1.' ., .100 11.100 o : O.DOS: Laundry 4I.U' ..as. 47 .000 11 .000 (1..000): -18.IOS: Pun:hUtnt 1.I7S 1.". lS.200 '.100 (7.100): -17.se.: "IM "rUt_ 50.... 21.111 ...100 .1.100 0 O.OOS: Haullll_tnt 27.111 11.SOI 11.100 11.100 1.000 10.IIS: .....teal rlll'''_ 50.01. 20. .as .1.200 ".400 ..200 15.42S: .~ ...t.tnecrattan 50.11. U.... I? .100 10 .100 (..700): -I. liS: ,.8.110 ....01 110.000 112.100 12,100 : 7.51.; nt.rattan 88.SIt 1,.n. 51.100 II. .00 (21.100): -38.05S; --------, ---------: -----: ____e. ---------: ----------.., . 0 TOTAL SALAIIID ".201.1" : 1.11.271 : ".104.100 : '1.'.'.100 : (1114.700): -11. liS: ::.s..............................,.............:.............t.............~.............:.............;......a=.:awa~ ~.~ . . 1________________________ . _ _IlL. ~1lL. IIaVDID I"YI ,", ...,. NClIt-GPIItATIHlI IlIVIMlI (..-) - --------- ...------------------------------------------ , Account .... ',10 ~1 YTD NDv 10 (I _) "" ,.., App~ : "raJa.. IucIteC ....,t .t.. CMn.- ..". Approved ...rc.n1: CIlIIn.. ,---------------------------------,-------------,-------------, . ~ ------:-------------:-------------:-------------: Sal.. tax oantrtllut:t_ 1411.210 1117 ..n SIII.nl PII.IOG 1",711 : 5.111; C1ty oantr1l1ut:1an 10.011 0 '.000 1.000 : Stata ~ 1Nr1", ',1.417 110.411 111.000 110.400 (2.1001; -l.42S: Intereet 1_ 1.771 2.110 '.000 '.000 0 O.OOS: Ct1n1c I"ental. ~ or ....r.... '.74' 1.11. 0 0 0 Qranc 1_ 140.000 12 .000 11.000 12.000 ottler ".271 14.111 II.IOG 11.100 Intereet exJ .n-. (11.771) (4."1) (7.100) ('7.100) (1.100); 125.32"; Ke 1'011I dully (1.011); o : 0 ,... '-1tal planntns (1.271) : (1.171): ('0.000): (10.000), 0 O.GOS; ----- . I -----: . ItOIt-CIPlIATIHlI ftVlHUI (UP.....) ....411 I P70.1. : 1104.'71 . .....100 : ....711 l'.IIIS: . :.................................,.... ....;---;. -:-.- :----.: . .