HomeMy WebLinkAboutRes1991-064
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Sponsored by: Schaefermever
CITY OF SEWARD, ALASKA
RESOLUTION NO. 91-064
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, ADOPTING THE SEWARD GENERAL HOSPITAL FUND
ENTERPRISE BUDGET FOR THE FISCAL YEAR BEGINNING JULY, 1, 1991
WHEREAS, on April 15, 1991, the Community Hospital Board, in
accordance with Seward City Code provisions, held a formal public
hearing on the proposed Fiscal Year 1992 operating budget of Seward
General Hospital and subsequently approved said budget; and
WHEREAS, Section 2.30.130 of the Seward City Code requires
that the proposed budget of Seward General Hospital be submitted by
the Community Hospital Board to the Seward City Council for
approval of total expenditures; and
WHEREAS, the City Council must also determine the total amount
of money to be made available from local sources for hospital
purposes; and
WHEREAS, the City council conducted a public hearing on the
proposed Seward General Hospital budget at its regular meeting of
May 13 and 28, 1991;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The Seward General Hospital Fund Budget for the
fiscal year beginning July 1, 1991, which is attached hereto and
made a part hereof by reference, and which contains estimated
hospital revenues and expenditures for Fiscal Year 1992, is HEREBY
ADOPTED.
Section 2. This resolution shall take effect July 1, 1991.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, this 28th day of May, 1991.
THE CITY OF SEWARD, ALASKA
aA~_UX7tJ~
DAVID L. HILTON, SR., MAYOR
AYES:
NOES:
ABSENT:
ABSTAIN:
Burgess, Dunham, Meehan, Sieminski, Simutis
None
None
Krasnansky, Hilton
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 91-064
ATTEST:
APPROVED AS TO FORM:
PERKINS COIE, Attorneys for
the city of Seward, Alaska
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(City Seal)
I.-.A hI~
Fred B. Arvidson
City Attorney
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SEWARD GENERAL HOSPITAL
SEWARD, ALASKA
1992 FISCAL YEAR BUDGET
STATEMENT OF ASSUMPTIONS
1. The basic assumption in the forecast of operations of the Hospital is derived from
the operating results of the period of July, 1990 through February, 1991, except
for Surgery, Emergency Room and Ultrasound.
A. Surgery cases have been projected at 92 versus the current year estimate
of 32. In FY 92, we plan to share the services of a surgeon from another
community who will schedule cases at Seward each month.
B. Weekend coverage by a 24 hour on-call physician will increase Emergency
Room visits in FY 92.
C.
Ultrasound coverage will be expanded by hiring a technician instead of
using the current outside agency which provides service only one day a
week.
D.
One additional full-time employee position (Physical Therapist) has been
included in the budget in order to renew this department.
2. Utilization is forecasted as shown below:
FY 90 FY 91 FY92
Admissions 402 365 365
Patient Days (Acute & Swing Bed) 1,333 1,019 1,019
Outpatient & E.R. Visits 7,229 5,797 6,090
Average Census 3.65 2.79 2.78
Average Length of Stay 2.77 2.64 2.64
3, Inflationary rate and expense increases are estimated as follows:
A.
Patient Revenue Rates
Volume will result in a total increase
5.00%
25.19%
B.
Other Operating Revenue
0.00%
C.
Operating Expenses, except as noted in Assumption #1
5.00%
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STATEMENT OF ASSUMPTIONS
D. Labor rates are projected with a 3% increase, but adjustments will net the
increase to 4.39%. Total labor cost will increase approximately 12% with the
addition of two FTE's, (PT, and Ultrasound).
E. Malpractice insurance in FY 92 has been reduced for a one-time refund
from MICA (the former carrier) estimated at $55,000.
F. The state revenue sharing is budgeted at the sam level of participation as
in FY 91. City sales tax revenues have been reduced to approximately 1%
of the estimated tax collections.
4. Full Time Equivalents (FTE's) paid are projected at:
FY90
FY 91
FY92
# FTE's
36.40
36.28
37.82
5. Employee benefits increase from 29.4% in FY 90 to 40% in FY 92 due primarily to
the requirements of funding the PERS program.
6,
Contractual allowances are estimated based upon the projected Medicare (Title 18)
and Medicaid (Title 19) utilization and current reimbursement regulations.
Reimbursement is subject to retroactive audit adjustments and changes in
regulations.
The trend of utilization by inpatients covered by these programs are as follows:
FY90
FY 91
FY 92
Medicare
Medicaid
48.56%
5.94%
42.80%
10.36%
42.80%
10.36%
Total
54.50%
53.16%
53.16%
7. Bad debts are estimated at 12.5% of private revenue. Charity and policy discounts
are budgeted at $32,600 based on the activity in FY 91.
8,
Capital additions are estimated at $57,000 for FY 92. These additions are based
upon financing of $50,000 by the City of Seward with a payback over a period of
five years at 9.75%.
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STATEMENT OF ASSUMPTIONS
9. Cash flow has been projected based on the following key statistics:
A. Days Revenue in AIR - Net
B. Days Expenses in AlP
C. Days supply expenses in Inventory
FY 90
FY 91
FY92
116.86
97.98
136.28
100.00
60.00
120.00
80.00
30.00
100.00
10. The hospital has not yet determined the amount for rental expense for a new
physician's office space. This amount would be included in their guarantee for
their first year. $16,000 has been included in the budget which should also cover
the new physician's moving expenses.
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SEWARD GENERAL HOSPITAL - STATEMENT OF INCOME
GROSS PATIENT REVENUE
ROUTINE - ACUTE
ANCilLARY: INPATIENT
OUTPATIENT
TOTAL GROSS PATIENT REV,
REVENUE DEDUCTIONS
CONTRACTUAL ADJ.-CURRENT
CONTRACTUAL ADJ.-PR YR
PROVISION FOR BAD DEBTS
POLICY DISCOUNTS
TOTAL REVENUE DEDUCTIONS
NET PATIENT REVENUE
OTHER OPERATING INCOME
NET OPERATING REVENUE
OPERATING EXPENSE
PAYROll
EMPLOYEE BENEFITS
PROFESSIONAL FEES
SUPPLIES
UTILITIES
REPAIRS
PURCHASED SERVICES
INSURANCE
TAXES & LICENSES
DEPRECIATION & AMORT.
ADM, EXP. CITY OF SEWARD
INTEREST
OTHER EXPENSE
TOTAL OPERATING EXPENSE
INCOME FROM OPERATIONS
NON OPERATING INCOME:
OPER TRANS CITY OF SEWARD
REVENUE SHARING
CLINIC REVENUE-net
OTHER NON-OPER. INCOME
NON-OPERATING INCOME
NET INCOME
ACTUAL
FY90
ESTIMATE BUDGET
FY 91 FY 92
CHANGE
FY 91/92
$644,100 $569,100 $609,200 7,05%
736,000 700,700 902,200 28,76%
853,200 791,500 1,069,200 35.09%
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2,233,300 2,061,300 2,580,600 25,19%
197,500 74,800 8,200 -89,04%
0 23,900 25,100 5,02%
141,100 122,700 218,800 78.32%
12,200 31,100 32,600 4,82%
350,800
252,500
12.75%
284,700
1,882,500
88,800
1,808,800
42,600
2,295,900
42,600
26,93%
0,00%
1,971,300
1,851,400
26,31 %
2,338,500
1,205,700 1 ,119,1 00 1 ,252,100 11,88%
446,1 00 329,100 489,800 48.83%
146,700 349,400 329,700 -5.64%
316,300 277,800 291,600 4.97%
114,100 99,300 106,900 7,65%
16,000 29,700 31,200 5.05%
104,700 88,300 159,400 80,52%
62,100 17,800 18,700 5,06%
0 4,000 4,200 5,00%
81,800 80,200 83,200 3,74%
0 0 124,788 0,00%
15,800 12,100 14,800 22.31%
65,100 138,800 91,800 -33,86%
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2,574,400 2,545,600 2,998,188 17.78%
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(603,100) (694,200) (659,688) -4,97%
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453,300
182,500
8,700
177,700
407,500
180,400
5,100
98,200
524,800
127,000
(6,000)
28,900
28.79%
-29,60%
-217,65%
-70.57%
822,200
674,700
-2,39%
691,200
$219,100
($3,000)
-600.40%
$15,012
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