PORT ANGELES — Olympic Medical Center commissioners have approved a $140.9 million budget for 2012 without knowing how deep the state will cut into its revenue.
Hospital commissioners voted 6-0 on Wednesday to pass the budget, which may change in early 2012 after the state Legislature makes $2 billion in necessary cuts.
As it stands, the public hospital district is budgeting for $143.1 million in operating revenue, $140.9 million in expenses and a 2 percent profit margin.
“I think it’s safe to say this budget will change,” OMC Chief Executive Officer Eric Lewis told commissioners in their twice-monthly meeting.
Layoffs not in budget
Layoffs are not part of OMC’s budget.
The hospital district is Clallam County’s largest employer, with more than 1,000 workers.
Commissioners on Wednesday also passed a resolution increasing the annual property tax levy by the maximum amount of 1 percent in 2012.
Among the state programs on the chopping block are Basic Health, which provides medical services for the poor, and Disability Lifeline, which serves low-income adults and chemically dependent people.
OMC gets about $2 million per year from another state program called Certified Public Expenditure, which is also in line for cuts.
Last month, Gov. Chris Gregoire released a budget-cutting proposal that would translate to a $3 million hit to OMC in 2012 alone.
The state Legislature will begin to make the actual cuts in a special session beginning Nov. 28.
Millions in cuts
Lewis said OMC stands to lose anywhere between $1 million and $5 million.
Longer-term federal cuts to Medicare, which covers 55 percent of OMC patients, are on the horizon.
OMC doctors will lose 27 percent of their Medicare reimbursement unless Congress intervenes, Lewis said.
“I think there’s both at the federal and state level proposed reimbursement cuts that might cause us to relook at our operating expenses and our capital budgets,” Lewis said.
OMC was required to adopt a 2012 budget based on current law.
“Usually, that doesn’t change in two months’ time,” Lewis said.
“But I think over the next 60 days, we could have dramatic changes at the federal and state level, which may require us in early 2012 to revise the budget and look at the capital again and make sure that the plan will last for 2012.”
Julie Rukstad, OMC chief financial officer, said the 1 percent property tax increase will generate an additional $37,042.
That brings the total revenue from the levy to $3.7 million.
The money will be used to treat uninsured patients.
OMC projects to have $11 million in uncompensated care next year.
Lewis said OMC is already making plans for the impending cuts at $1 million increments.
“We probably will know by early January where this is going at the federal level and the state level, although the state could take longer,” he said.
Lewis and OMC board members plan to visit the North Olympic Peninsula’s legislative delegation in Olympia early next month to advocate for adequate health care funding.
“It’s going to affect a lot of individuals, and a lot of our patients,” Lewis said.
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.