The Island Hospital Board of Commissioners met Monday morning to review the proposed $74-million budget for the coming year and vote on the one-percent levy increase permitted under the law without a public vote. But, that one-percent levy increase amounts to just about $8,000 for next year.
Hospital Administrator Vince Oliver told the board, “We will probably not hit the mark this year on the budget.” He said that so far this year, “Bad debt is in excess of twice we budgeted.”
The public Hospital District board had earlier approved a 5% hike in hospital charges, but for the most part, the only hospital users to pay that will be people without insurance. The hospital negotiates separate rates with insurance companies.
The hospital district is projecting receiving about $822,000 from the property tax levy next year and another $16,000 as the hospital district’s share of taxes on new construction in Anacortes. These amount to a small portion of the $74-million budget okayed on Monday.
The current year’s budget is $70-million. Under the 2011 budget, staff will be increased from 477 FTE’s (full time equivalent) to 488 FTE’s. New staff will be added in Emergency, Labor & Delivery, Psychiatry, Physical Therapy, Nuclear Medicine, Patient Accounts, and Information Systems.
The budget anticipates no change in the hospital district’s Tax Credit Program, which allows property owners deductions when using hospital services. The deductions can amount up the hospital’s share of property taxes each year paid for one property. But, one board member suggested that the Tax Credit Program may not comply with state laws, an issue that could turn up during a state audit.