Phoebe Putney Memorial Hospital Board of Directors approves FY 2018 budget

ALBANY — The Phoebe Putney Memorial Hospital Board of Directors was presented with, and approved, on Wednesday the hospital’s Fiscal Year 2018 $530 million budget. The spending plan includes charge increases that have been built in some areas and a payment in lieu of taxes on Phoebe North.

The charge increases will include a 9 percent increase in time-level charges with the exception of labor and delivery and inpatient, which will see a 12 percent increase in time-level charges. No increases are anticipated for gastrointestinal procedures, outpatient computed tomography and MRI pricing or charges already higher than Phoebe’s peers.

Overall, a 4.4 percent charge increase is planned for Phoebe in FY 2018, officials said.

The FY ‘18 budget will include payments of $866,690.15 to Dougherty County through a combination of voluntary payments in lieu of taxes, or V-PILOT, on Phoebe North and taxes on other properties that are not being used for a specific tax-exempt purpose. Of that $866,690.15, $628,653.62 is accounted for through Phoebe North.

Phoebe officials added that, by board practice, an annual review is conducted on all properties to ensure they are classified accurately.

The payments made for Phoebe North have been made as part of a five-year agreement with the Hospital Authority of Albany-Dougherty County. The agreement is set to expire this year, and officials said a decision concerning a payment for FY 2019 has not yet been made.

Officials said the hospital is experiencing a provider shortage, making recruitment and retention a budget priority. Increased funding for nursing departments and expansion of a nurse extern program is accounted for, as is a 3 percent merit pay increase for Phoebe employees.

Phoebe officials said employees will not experience a rate increase in health care premiums. Expansion in cardiology and electrophysiology services is planned, along with a focus on reducing premium labor. The pharmacy has planned improvements to offset drug cost increases in the fiscal year, officials said.

This budget comes during a time that construction is ongoing to repair damage to the hospital’s behavioral health floors that was sustained several months ago when a sprinkler was compromised by a patient, resulting in flooding. Brian Church, chief financial officer for Phoebe Putney Health System, said plans call for the unit to be operational again in the first quarter of FY ‘18.

Officials added that the consolidation of biomedical equipment maintenance contracts into one contract with one vendor for projected savings is an initiative planned for the fiscal year.

The budget calls for $31.7 million in capital expenditures for FY 2018, while providing $65 million in charity and indigent care for patients from Dougherty, Lee and surrounding counties.

“As a not-for-profit community hospital, we constantly invest in advanced technology, facilities and equipment to ensure our medical staff can provide our patients the best possible care,” Church said in a statement. “As this region’s tertiary safety net hospital, our board challenges us to assure we are always here for those in need, regardless of their ability to pay.”

Officials said the budget does not include funding from taxpayers in Dougherty and Lee counties.

“Our board has worked diligently over the years to ensure Phoebe is not a burden on taxpayers for indigent care relief,” Phoebe Board Chair John Culbreath said. “This task becomes more daunting every year in the face of the great need during a period of profound indecision on state and national health policy.”

The Affordable Care Act is expected to continue an additional negative impact on Phoebe in 2018 with an estimated loss of at least $5 million. Medicaid Disproportionate Share Hospital cuts are scheduled to begin unless halted by government regulations, with $2 million projected to be cut in 2018, Phoebe officials said.

The estimated annual employment for FY ‘18 at Phoebe Putney Memorial Hospital is 2,891. This includes 264 physicians and 151 advanced practice providers. Annual payroll and benefits total $250 million, while the Georgia Hospital Association estimates an economic impact of $1.2 billion.

A projected look at admissions shows, when combining Phoebe North and its Albany sister campus, a count of 19,329. Of that, 17,228 is anticipated for the main campus. Inpatient days are expected to be at 106,118, 94,582 of which is likely to be seen at Phoebe Putney Memorial Hospital, officials said.

The next regular hospital board meeting is scheduled for Aug. 2.