Commissioners for Jefferson County Public Hospital District No. 2 voted unanimously to approve its 2021 operations and capital budget, along with a resolution that will see a 1 percent increase to …
Commissioners for Jefferson County Public Hospital District No. 2 voted unanimously to approve its 2021 operations and capital budget, along with a resolution that will see a 1 percent increase to its local property tax levy.
Jefferson Healthcare’s Chief Financial Officer Hilary Whittington presented a summary of the 2021 budget during the board’s meeting Wednesday, Oct. 28.
Whittington said next year’s budget totals $288 million in patient revenues. Factoring contractual adjustments and additional revenue sources, the total operating revenues for 2021, are $138 million.
“For 2021 we’ve budgeted for $68.2 million in salaries ... you’ll see an increase there from 2019,” Whittington told the board. “A significant portion of that relates to bringing on our emergency department providers in 2020.”
One of the biggest changes for the public hospital district was related to supplies, which in 2019 cost $23 million.
In 2021, Jefferson Healthcare anticipates spending $25 million on supplies. After taking into account the total budgeted expenses for 2021 ($134 million), a remaining operating income of $4.1 million is anticipated, a little more than $200,000 less than 2019’s operating income.
Examining key performance indicators looking forward to 2021, Whittington said the district will remain in line with previously established standards for employee salaries and benefits as weighed against anticipated revenues from patient services.
“Of our metrics, those that are most important for us to monitor are salaries and benefits as a percent of net patient service revenue,” Whittington said. “We consistently aim to be below
In 2021 Jefferson Healthcare expects employee salaries and benefits to be equal to 64.83 percent of the net patient service revenue.
At the meeting, commissioners also approved a series of resolutions that would allow the hospital district to raise property tax revenues by 1 percent.
The increase required a substantial need resolution which stated, “Jefferson County Public Hospital District No. 2, Washington, has determined that there is substantial need to increase the regular property tax limit factor above the rate of inflation … The limit for the regular tax levy for the year 2021 will be 101 [percent] of the highest amount of regular property taxes that could have been lawfully levied in the district.”
Commissioners unanimously approved the 2021 budget, substantial need resolution, and the property tax increase resolution Oct. 28.