CGH forecast shows budget surplus
Hospital report projects more than $1 million will be left after expenses

By Jim Tiffin
Cibola County Bureau

GRANTS — Cibola General Hospital is anticipating a budget surplus at the end of its next budget year, June 30, 2007.

The income is expected to be $1,086,536 above expenses, according to a report issued by the hospital.

Hospital Chief Executive Officer Vince Ashley said he is presenting the budget, recently approved by the Cibola County board of commissioners, to the hospital board of trustees on Monday, and if approved, it becomes official.

The report also lists a series of "assumptions," which are basically educated guesses and programs the hospital expects to meet and add during the next year.

In the budget for the next year, the hospital lists adding computer software costing $390,000, which will continue helping the hospital head toward a paperless system for records.

The hospital is anticipating losing $300,000 from patient services, which includes those who either do not pay or are indigent and not approved by the commission for payment.

The "assumptions" state that the hospital plans to add another surgeon in 2007, increasing surgical procedures by more than 25 percent.

Medicare and Medicaid budget revenues are expected to be at 33 percent and 29 percent, respectively, "based on current year to date volumes of those government payers," the report states.

An 8 percent price increase in costs will probably be instituted to cover expenses and increased contracts, according to the report.

Cibola County mil levy payments are budgeted through June 2007 and Sole Provider Funds net payments are expected to reach $2,006,000 with the hospital making all the payments of the county's usually 28.3 percent share ($790,619), the report states.

Wage increases for employees are expected to be around 5 percent, including a $300,000 wage adjustment in July or August as based on the national hospital association's annual survey issued in May, according to the report.

Costs of drugs are expected to increase 5 percent, blood to increase 5 percent and general supplies expected to increase 3 percent in the budget year, the report states.

To contact reporter Jim Tiffin call (505) 287-2197 or e-mail: tiffin.independent@yahoo.com