Bartlett Regional Hospital’s fiscal watchdogs are still studying factors that led to the hospital’s revenues plummeting this year below anticipated levels, while preparing ways to counter an expected decline in next year's budget.
The hospital's Finance Committee held a special meeting on Monday and updated the full board on February’s financial figures compared to year-to-date figures, proposed charity care, collections policies and other topics.
The committee also met in executive session to discuss items related to the budget that could harm the hospital’s finances.
Interim Chief Financial Officer Dennis Stillman told the committee on Monday the hospital is projected to be $9 million below its projected revenues. Stillman said the biggest driver in the shortfall is a lack of patient volume, not extra spending.
Preparing for this fiscal year, the hospital made a small increase to staff as it anticipated more volume than prior years. Instead, patient volume has dropped to 2009-2010 levels and expenses have remained the same. Currently, Stillman is projecting the hospital will not see a serious deficit this year.
"The bottom line says ... we're going to be at basically break-even at the end of the year," he said. "These are based on assumptions on the next three to four months. Basically we’re off by about $9 million from where we budgeted to be. Most of it is a volume issue."
Linda Thomas, board vice president and committee chairwoman, said as they move forward into fiscal year 2013, they need to be careful to not be over-reactive in responding to the volume dip.
The committee has been meeting regularly to determine and discuss factors involved in the decline. During last week's meeting, the panel learned the decline is probably largely part of a national decline, as more patients are spending more either in higher deductibles or for insurance costs, so people are making less use of health care facilities.
The full board meets at 5:15 p.m. today in the hospital’s Administrative Board Room and is expected to pick up the topic again.
• Contact reporter Sarah Day at 523-2279 or at sarah.day@juneauempire.com.
Comments (11)
Add commentInexperienced or Incompetent
The part-time board of directors fired the two top financial officers at Bartlett and are now attempting to manage the hospital in their spare time – and just look at the results.
Bartlett raised its rates earlier this year and then budgeted for a big increase in revenue. Did anybody tell the board that the insurance companies must agree to increased hospital rates? Insurance companies will increase payments only after extended negotiations with a regional groups of hospitals. Insurance companies don’t pay more because a hospital is being mismanaged.
The only people effected by Bartlett's recent rate increases were the people without insurance - and now those people have stopped going to Bartlett. Worse yet, Bartlett just changed its payment policy requiring these people to make larger payments each month. No more $50 payments against their bills.
The spending at Bartlett is out of control and the board tried to inflate revenues to cover this fact. The excessive spending is now obvious to all. Just say no later this year when Bartlett comes begging the city for another bailout.
Well, let's see....
"the biggest driver in the shortfall is a lack of patient volume"
Yes, we were surprised when a local Dr. told us to check into going to Seattle for a minor outpatient procedure as the cost to get it here is $8000. The cost in Seattle ranges from $500 to $800. Even with the cost of air tickets and hotel, we'd be better off leaving - and get a little getaway while we're at it. Maybe if they weren't charging so much, people would stay here.
gssmith, I do not know where you got your info, but you are
wrong.
i submit
GJ is right out of control spending is brh biggest problem. New this n that's over staffing, over pricing & zero accountability is a recipe for them going back to the assembly looking for more had outs
Where are you getting your info?
"It is better to remain silent and to be thought a fool than to speak and remove all doubt."
The nurses did not just
become unionized. They have been union for quite a while. Again, someone not knowing what they are talking about.
Supply and Demand
Ah, capitalism at its best. Price goes up consumption goes down! Price goes down, comsuption goes up! BRH, as a corporation does what it perceives to be in its best interest and is shocked when the public does the same thing!
@GJSmith
You do realize that those top two financial officials are the ones who presented the information and budget that volumes would go up at the hospital, right? So yeah, it does make sense that these 'part time board members' are working on a solution. They were presented with info from those officials that this year would be better than the last.
And by the way, they didn't go begging the city for a handout last year. They went to the city to ask for approval to use the Hospitals OWN reserves to meet a shortfall. It didn't ask the city for city funds.
But hey, never let the facts stop you in making an argument.
All I know is why my use of our local hospital is down.....
Services cost more and I have less insurance. I can't even afford the deductibles and co-pays with one insurance company let alone the costs above what my insurance company deems reasonable.
Sorry guys...not till I HAVE to and I'm praying I won't HAVE to.
Local costs
My doctor advised for a colonoscopy I could go to Seattle, have a nice vacation and the procedure and save money. I opted for an even less expensive sigmoidoscopy (spelling). It is great to be able to stay local and use local facility but if your insurance does not cover the costs you must shop around. Insurance companies should provide incentives to use lower cost facilities that are equal in care.