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Published on 08/10/1998 All articles from this issue

Hospital budget includes 110 new positions

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By Carol Tiegs

Special to the Town Crier

Nurses and other support staff should benefit as a result of a healthy new budget, hospital board members indicated at last week's El Camino Hospital District board meeting.The board approved its fiscal year 1998-99 budget estimate and a new financial policy.

The budget reflects the addition of 110.1 full-time equivalent staff positions in 1998-99. Board chairman Dr. Paul Hoar said he wanted the majority of new-hires to be registered nurses. "We need (nurses) here at the worst possible times and in the worst possible circumstances," he said.

Marla Gularte, the district's chief financial officer, said nurse hires represent approximately half the new positions.

"Staffing is the biggest challenge we'll have next year," said Owen Aurelio, the hospital's chief operating officer and associate administrator. He said seven of the new positions would go to a flex program to provide adequate coverage to all nursing shifts.

Richard Warren, hospital administrator and district CEO, said the hospital had also added training nurses to its staff. "We can't recruit experienced cardiac care nurses fast enough," he said, "so we have to train our own."

The budget estimate, approved by the hospital's board of directors, projects operating revenues of $181.8 million. Actual operating revenues for 1997-98 were $169.5 million. This includes approximately $1 million in increased patient revenue, and a $10.7 million increase in capitation revenue.

Capitation revenues, which are pre-negotiated, fixed, per-patient payments made by managed care organizations, are sometimes less than the actual cost of service. But Marla Gularte, the district's chief financial officer, said they "tie patients to a hospital," providing a stable income flow.

Non-operating revenue, including taxes and interest, is estimated at $12.4 million for fiscal year 1998-99, for a total revenue of $194.2 million. The budget estimate sets capital reserves at $4.3 million.

The budget estimate projected a 15 percent increase in patient days. Skilled nursing and sub-acute care unit admissions account for 7 percent of that increase.

Board members noted that, while patient days increased in the 1997-98 fiscal year, as did the number of maternity admissions, overall admissions have not increased. "We seem to be taking care of sicker patients," said board member Dr. Edward Bough.

Gularte said that projected admissions figures "may be optimistic." Figures "will be continually adjusted against our actual experience," she said.

Total salaries and benefits for the coming year are predicted to increase 11.6 percent, or $11.5 million. Gularte said this reflects an 8 percent cost of living increase and other salary adjustments agreed to by the board.

Net income in 1998-99 for the hospital district and its affiliates is estimated at $16.8 million, 3.6 percent less than the $22 million 1997-98 income.