CAMC approves 2014 budget
Charleston Area Medical Center's board of directors voted to adopt a projected budget for Fiscal Year 2014, which includes a net income of about $27.5 million in its monthly Board of Trustees meeting Wednesday.
Chief Financial Officer Larry Hudson said there aren't major changes between the Fiscal Year 2013 budget and the latest plan.
"It's fairly routine between the years," he said. "The major changes that you can't see but are embedded in there are effective health care reform - a lot of cuts are coming plus new revenue for the Medicaid expansion and the exchange. That's kind of wash right now for the year."
Capital expenditures are placed at $24 million and project funds at $87.6 million.
Patient discharges are anticipated to increase slightly from 38,127 to 38,506.
In CAMC Memorial, about 63 additional discharges are expected with the addition of an orthopedic surgeon and renovations.
In CAMC General, about 288 discharges are expected with the addition of an orthopedic surgeon and five more beds.
At CAMC Women & Children's Hospital, about 28 additional discharges are expected with the addition of a pediatric neurologist.
Outpatient visits are anticipated to decrease by 6,900 visits - from 625,100 to 619,200. Children's Medicine Center is losing about $10,000 to FamilyCare and about $2,000 from the eliminated Pediatric Care Coordination.
Increases will come from the CAMC LabWorks installation of MobileMD at $3,900 and the CAMC Memorial emergency department renovation at $1,200.
Sources of cash include net income at $27.5 million and depreciation at $34,321,000 for a total of $61,821,000. Uses of cash include capital expenditures at $24 million, principal payments at $11.2 million, equity transfers at $11.5 million and working capital at $7 million for a total use of cash at $53.7 million. The total surplus funds for increase in cash at $8,121,000.
Health care reform impact will net about a loss of $1.5 million. Reductions include the Affordable Care Act at $5,978,000; Sequestration at $6 million; Bad Debt at $150,000 and coding adjustments for about $1,222,000 for a total reduction of $13,350,000.
Enhancements will include $10,449,000 for Medicaid expansion and exchange and $1,446,000 for value-based purchasing for a total enhancement of $11,895,000. The total health care reform impact will net $1,455,000.
Also at the meeting:
- Chief Executive Officer Dave Ramsey said CAMC has opened the office building in NorthGate Business Park that it purchased in 2007 after winning a bankruptcy court auction with a bid of about $2 million.
The building has been named CAMC Innovation Center. It is housing about 100 people on one and a half floors, including information systems and marketing personnel. The building has cubicles, offices and shared spaces.
It has another 1.5 floors available and will include a cafe/coffee shop. Ramsey said the building would save about $1 million per year in leases and utility expenses.
- Brenda Grant, chief strategy officer, said the hospital is working with the Greater Kanawha Valley Foundation to bring growth and sustainability to the area. As part of the initiative, the hospital participated in a discussion to focus on three efforts: telemedicine, healthy kids work and herbs.
The latter will include a farm-to-hospital concept where sodium and fat will be decreased in food, where flavor will be increased as the hospital looks to local growers, the Department of Agriculture and others to provide fresh food to the hospital.
- Board members conducted their first meeting primarily paperless Wednesday.
CAMC is conducting a trial run of going paperless; both iPads and paper were available Wednesday. For six months, the board will test an application available on tablets and desktops that will allow them to save 200 to 400 paper packages per member per monthly meeting.
- Dr. Pinckney McElwain begins his role as chief medical officer in early October. Most recently he served as vice president for quality and performance improvement and chief medical officer for St. Luke's Episcopal Hospital in Houston. Dr. McIlwain completed his residency at CAMC in the late 1970s.