PCH annual budget looks good

In a joint meeting with the Piggott City Council, the Piggott Community Hospital board presented the facility's budget for the coming fiscal year Monday night. After an overview by hospital administrator James Magee, the aldermen voted to approve the budget without dissent. On hand, along with Magee, were hospital board members Danny Brown, Guy Brinkley and Cord Sutfin, along with Debby Haywood.

During his presentation, Magee noted that the hospital should realize net revenues of just over $14.35 million in the coming year on just over $20 million in gross revenues. Of that income about $13.5 million will be spent on operating expenses. "About $7.5 million will go toward salaries and wages, and about $1.25 million in benefits," Magee explained. He added that another $3.59 million will go toward supplies and expenses. If the budget predictions pan out the hospital should see a profit of over $75,000 this coming year.

Magee also explained that many areas of operations are not as profitable as others, but that across the board the hospital has a good financial outlook. He noted that, while such efforts as the home medical operations in Piggott, Campbell and Corning have shown excellent profits, they must offset losses in other areas such as the ambulance service. He also broke down the income from patient services, and explained that many of them pay only cost for their services due to Medicare and Medicaid.

According to Magee's presentation, the home health efforts generated over $737,000 in 2005, over $805,000 in 2006 and over $832,000 in 2007. Other figures indicated that the emergency room recorded 4,665 visits in 2005, of which 583 were transferred to other facilities. In 2006 there were 4,974 E.R. visits, of which 562 were transferred, and last year the number rose to 5,344 visits and 527 transferred.

Other points of interest included an increase in the average salary for hospital employees. In 2006 that number was slightly over $32,000 per year and in 2007 it rose to just over $34,000. Magee also noted that it takes $40,000 per day, every day, for the hospital to just remain open, and that the facility is currently averaging between $42-43,000 dollars per day in revenue. He also added that the hospital writes off an average of $1.2 million in bad debts each year, but that the figure so far this year is down slightly.

Following Magee's presentation, the city council approved the hospital's budget for the coming fiscal year, commending the administration and staff on their efforts.