BJC Medical Center will finish this fiscal year in the black, and officials expect the same thing for next year.
Meeting Monday afternoon, the BJC Medical Center Authority approved without comment a budget for 2008-09 that starts July 1.
Based on expectations of two percent higher admissions, similar volume in the emergency room, a four percent price increase and two percent more bad debt, the budget projects a $124,000 bottom line at the end of the year, explained Bill Williams, chief financial officer.
The hospital has operated in the black since 2004, according to Williams.
Gross revenue is budgeted at $58.4 million, but net revenue at $29.7 million, meaning the medical center expects to be reimbursed less than 50 cents for every dollar billed.
Bad debts and charity costs are expected to total $6 million.
The end result also depends upon the medical center getting $600,000 — the same as this year — in state funds. While Gov. Sonny Perdue has ordered agencies to cut their budgets by five percent, Williams said the governor “has said he will not reduce the upper payment limit.”
The budget also includes four percent merit pay increases for employees on their anniversary dates. It includes no significant changes in employment.
In the course of listing the highlights of the budget, Williams revealed that he expects BJC to end the year $250,000 in the black.