PORT TOWNSEND — Jefferson Healthcare hospital commissioners approved a 2020 operating and capital budget with expected revenues and expenditures of more than $100 million.
The budget was unanimously approved during a special meeting held on Wednesday afternoon at Jefferson Healthcare.
Chief Financial Officer Hilary Whittington presented the budget to the commissioners and staff members.
Total operating revenues for 2020 are predicted to be at $136,771,584, a $13,390,291 increase for the projected 2019 final revenue of $123,381,293 calculated since June.
The total projected operating expenses for 2020 are $131,387,443, which is a $14,006,912 increase from the 2019 June projected expenses of $117,380,531.
“Judging from the past, we’ve been pretty darn good with the budgets,” said commission Chair Jill Rienstra.
The three largest expenses for the organization are employee salaries projected to cost $65,589,903, health care supplies costing a predicted $24,922,370 and employee benefits costing $16,897,560.
“Our expenses have been gone through line by line, department by department to make sure we have as realistic a breakdown between where we expect to have employees, where we expect to have contracted providers or vendors and our expected supplies use,” Whittington said. “Those are certainly our biggest categories of spend.”
Overall, the hospital has a projected $5,295,933 operating income for 2020, which includes an additional $88,208 in non-operating expenses.
Capital projects/expenditures planned for 2020 have a combined cost of $3,567,721, with a possible $203,027 in additional expenses from projects that are still in the planning stage.
“We self-fund our expenses through our contribution margin,” Amy Yaley, director of marketing and communications said. “So after our operating expenses are taken care of we set aside funds for capital improvements.”
Some of the planned projects will have a lasting impact.
“Few of those projects including the parking lot tend to have very long useful lives and depreciation doesn’t click up as fast as the other projects,” Whittington said.
The recording of the commission hearing can be found at jeffersonhealth care.org/hospital- commission.
Jefferson County reporter Zach Jablonski can be reached at 360-385-2335, ext. 5, or at [email protected].