The mill levy in the hospital's budget is staying the same at 5.988 mills with $445,734 of ad valorem taxes, but 2010 expenditures are published to be $1.3 million over the 2009 estimate of $16 million. That's an increase of 8.4 percent, which the Hospital Board approved Tuesday night following a budget hearing.
Chief Finance Officer Jim Brinkman said the increase is "pretty much inflation," but the new MRI and physicians have also impacted expenditures. The hospital will also be taking in more income, but not because of increased patient volumes. Rates will increase to offset the expenditures.
"With that, revenues go up," Brinkman said. "A lot of expenses have cause our expenditure to go higher."
Patient service revenue of $17.15 million will cover most of 2010's expenditures. That's up $2.65 million from 2009.
The bulk of the hospital's expenditures is also in patient services, which increases from $13.4 million in 2009 to $15.3 proposed in 2010. That includes everything from wage increases to the transition to electronic medical records. Electronic records was "a good chunk" of the increase, Brinkman said.
Hospital CEO Ron Bender said staffing the hospital with more physicians also has made the general budget higher because in past years the hospital had not been fully staffed.
The hospital will also be paying $5,000 more in bond payments at $195,000, about $10,000 more in lease payments at $341,145, but is spending $553,000 less in capital outlay expenses. Because of the MRI purchase, 2009 is an unusual year for capital outlay expenses. For 2009 the hospital is spending about $1 million more and twice as much as it did in 2008. Next year's capital outlay is proposed to be $1.5 million.
No one raised objections to the budget at Tuesday's hearing.