|Ocala, FL -
September 25, 2012|
Published in the Ocala Star Banner on Tuesday, September 25, 2012 at 5:31pm
The projected operating revenues, 7.3 percent greater than in 2012’s operating budget, are based on an anticipated 7 percent increase in patient admissions as well as an anticipated increase in surgical cases and outpatient cases.
Richard Mutarelli, Munroe executive vice president and chief financial officer, said some of the increased admissions would be due to the hospital’s new children’s emergency department and the newly expanded Villages South Campus offices.
But as revenues are expected to increase, so are the hospital’s expenses, which are expected to jump about 7 percent.
Mutarelli said about half of that 7 percent expense increase was due to employee pay raises to current market levels, new services, and physician practice acquisitions.
The 2013 budget also included $18 million in capital improvement projects such as $6 million for renovations, an emergency power generator and a Level II Nursery.
To balance the budget, Mutarelli said, Munroe expects to dip into its cash reserves, taking about $9 million.
That will leave the hospital with about 128 days of cash reserves by the end of fiscal 2013, which is below Fitch’s A-rated median of 158 days of cash reserves, Mutarelli said.
The public 421-bed hospital is owned by the state-sanctioned Marion County Hospital District and overseen by seven trustees who are appointed by the County Commission.
The trustees currently lease the hospital to Munroe Regional Health System, Inc., which is overseen by a 13-member board, some of whose members are also district trustees.