Stephens Co. Hospital Approves FY 16 Budget

Stephens County Hospital will implement a 3.5 percent rate increase beginning with the start of its new fiscal year on October 1.

Monday, the Hospital Authority unanimously approved a Fiscal Year 2016 budget that includes the rate increase.

Hospital Administrator Ed Gambrell said that the rate increase is not something that most consumers will notice directly because of the way health care is paid for.

“Our payment from Medicare and Medicaid is dictated by contract and our payment from insurance is dictated by the contract also and is usually a percent of charges,” said Gambrell. “So, the actual patient will not see a change, but you have to have a price list and you have to have a budget so that is what ours is.”

With the rate increase, Gambrell said the hospital is projecting to collect around $112 million in gross patient revenues in Fiscal Year 2016.

That is $2 million less than what was budgeted for the current fiscal year at the hospital, but $3 million over what the hospital actually projects to bill for the fiscal year ending September 30.

However, Gambrell said that while the hospital expects to bill the $112 million or so in gross revenue, it will not collect anything near that.

“Medicare and Medicaid patients, we get paid on diagnosis and they do not care what you charge, so our net patient revenue, before we pay expenses, is about 40 percent of gross.”

As a result, Stephens County Hospital’s expenditure projections are well below the gross revenue projections.

Gambrell said that in Fiscal Year 2016, the hospital is budgeting to spend about $47 million in expenses.

He said that figure is close to the current fiscal year, showing an increase of about $395,000.

“We are doing a good job of containing expenses right now,” said Gambrell.

Overall, Stephens County Hospital projects a positive bottom line for Fiscal Year 2016 of $277,000 when it ends on September 30, 2016.

Gambrell said that is less than the hospital would like, but realistic in his opinion.

“We are hoping that the year is busier and financially better and I think it will be obviously, but we have to add a couple of doctors,” said Gambrell. “We are working hard on that right now.”

Among the positions Gambrell said the hospital is looking to fill are an orthopedic surgeon, a general surgeon, and an OB-GYN position.