ALBANY, Ga. — The Phoebe Putney Memorial Hospital Board of directors approved a budget Wednesday for Fiscal Year 2013 that reinvests $45 million in services, technology and facilities.
The approval came after the hospital’s finance committee had recommended a couple of hours earlier that the budget be passed along to the full board.
The budget funds specific community health programs, clinics, school nurses as well as indigent and charity care. It gained unanimous approval shortly after the signing of the lease on Phoebe Putney Memorial Hospital and Phoebe North — bringing the Hospital Authority of Albany-Dougherty County’s assets under one operational agreement.
The budget is funded without a price increase and shows reductions in pricing in some services as well as the elimination of additional charges for private rooms, officials say. A presentation given to the board Wednesday reflects a decrease of approximately $400 per procedure for non-invasive cardiology, as well as adjustment to patient chargeable supplies.
“For all things used to care for patients, there is a system in place to track every single thing,” said Joe Austin, chief operating officer for Phoebe Putney Health System, of the chargeable supplies adjustment. “If we know what individuals are getting, it is easier to keep costs down.”
Net income for the new fiscal year is projected to be $12.7 million, and the operating margin is expected to be 2.2 percent. Indigent and charity care are expected to increase to $32 million, officials say.
Community benefit spending includes $1.3 million for the school nurse program and $1.7 million for Dougherty County inmate care. In addition, a commitment has been made to make a voluntary payment of approximately $378,000 in lieu of taxes on the Phoebe North property so as to not overburden taxpayers through the hospital’s consolidation with the main campus.
“For the first time, we will be paying taxes on a property that is legally exempt,” said Kerry Loudermilk, Phoebe’s chief financial officer.
Taxes for other properties not in use for medical purposes are approximately $292,000, Phoebe officials say.
More than $45 million is earmarked for capital improvements that include renovations to Phoebe North and the completion of the $35 million Phoebe Digestive Disease Center on Meredyth Drive. More than $225 million is expected to be put into new equipment and facilities over the next four years, Loudermilk said.
The hospital is also expected to reinvest in expansion of imaging and diagnostic capabilities and the development of a distribution warehouse in Dougherty County.
Financial highlights for Phoebe Putney Memorial Hospital during the fiscal year that ended on Tuesday reflected that revenues were budgeted at $1.089 billion, but were actually $1.104 billion. For the month of June, revenues were budgeted to be $103 million, but were actually $100 million.
The same chart also shows $364 million budgeted for expenses for the fiscal year, which actually ended up being $374 million. During June, expenses were budgeted for $32 million but were actually $31 million.