Phoebe reviews FY 2017 budget, transfer and lease agreement on property

ALBANY — While the lack of a quorum prevented official action, the Fiscal Year 2017 operating and capital budget and lease and transfer agreement for property on Arlington Lane were among the items put before the Phoebe Putney Memorial Hospital Board of Directors on Wednesday.

Phoebe Pediatric Specialty Clinics had been occupying the facility at 1912 Arlington Lane and sparked interest in Dr. Paul Payne of Southwest Georgia Obstetrics and Gynecology, a growing practice located in a neighboring building. The Hospital Authority of Albany-Dougherty County voted in May to proceed with discussions to sell the property with first right of refusal language included in the agreement at fair market value based on appraisal.

Phoebe officials said the pediatric clinic has relocated and that proceeds from the purchase of the property are expected to go back into Phoebe. The hospital board was set to take action on a measure Wednesday that would have allowed the Hospital Authority to sell the property, but due to the lack of a quorum, the board must vote on the measure at its next meeting.

The building, constructed in 1995, was acquired by the Hospital Authority as part of the Palmyra Medical Center — now Phoebe North — purchase in 2011. It has 3,773 square feet and has an appraised value ranging from $456,000-$479,000.

Brian Church, senior vice president and chief financial officer for Phoebe Putney Health System, said the continued impact of reimbursement reductions brought on by the Affordable Care Act and a lack of Medicaid expansion in Georgia will result in a $2 million loss in 2017 — bringing the total loss over the last several years to around $17.6 million for Phoebe.

The system’s main hospital has budgeted for 20,204 admissions and 113,546 inpatient days for the fiscal year, and is budgeting the equivalent of 2,924 full-time jobs at $253 million. The health system is budgeting a total of 4,335 full-time jobs, Church said.

The Georgia Hospital Association Economic Impact Report released in March had Phoebe’s overall economic impact at $1.5 billion for Southwest Georgia.

“(Phoebe) creates a significant amount of economic benefit,” Church said.

Church said the hospital’s FY 2017 budget calls for $32.5 million in capital expenditures, a reduction from the previous two years. This includes $15.9 million for facility projects, $5.9 million in medical equipment, $4.33 million for operating room improvements and equipment, and $3.5 million for information systems and telecommunications.

The hospital is budgeting to provide more than $275 million in community benefit support, including $30 million in indigent and charity care. Church said $948,000 is earmarked for a voluntary payment in lieu of taxes for Phoebe North.

Church added that there is no increase in room rates, gastrointestinal procedure costs, outpatient computed tomography and magnetic resonance imaging pricing or charges already higher than Phoebe’s peers. There have been increases in services in areas below peer comparisons, and there is a 3.5 percent overall hospital charge increase expected, he said.

The budget also includes a 3 percent compensation increase for the Phoebe work force during the third quarter of FY 2017, a marketing campaign for education on consumer access, continued optimization of the current electronic medical records system, and a partnership with Grady Healthcare for transport services in Worth County.

Also during the meeting, Dr. Giovanni Piovesana, a new cardiothoracic surgeon at Phoebe Putney Memorial Hospital, introduced himself and presented the services he will be providing at the hospital.