By Amye Anderson
UCBJ Managing Editor
COOKEVILLE – The 2018-2019 operating budget for Cookeville Regional Medical Center has been approved by the hospital’s Board of Trustees and is now on its way to the Cookeville City Council for approval.
The hospital is anticipating a total gross patient revenue increase of nearly $25 million over the current fiscal year, for a total of $717,361,596, for the new, 2018-2019 fiscal year. The amount to be paid out to contractual adjustments is also projected to rise nearly $15 million for a total of $407,457,082. CRMC is also projecting to pay out more than $23 million total in bad debts as well as contribute an additional $250,000 in charity care in the new fiscal year compared to 2017-2018 – for an estimated total of $5,272,733; compared to $5,021,650 in the previous fiscal year.
Those deductions combined with other non-patient revenue ($5,340,688) results in a total operating revenue of $286,182,204; with most of those operating funds – nearly $270,000,000 – covering salaries, employee benefits, services and supplies, and other operating expenses.
With the remaining $16,474,864 covering non-operating income and expenses, interest and contributions, and payment in lieu of taxes (PILOT), CRMC projects a net income of approximately $3.3 million.
The board also approved the hospital’s capital expenditures budget; including $3.5 million for planned expansion and improvements projects.
While hospital’s various care centers are projecting operating expenses that outpace the revenue received, estimated deficits look to be less than those reported in previous fiscal years.
Cookeville Regional Medical Group is projecting a total gross patient revenue of $31,053,663 but, after deductions for contractual adjustments, charity care, and bad debts, is only projecting a $11,196,968 operating revenue stream; leaving a projected loss of $6,585,501. The actual deficit reported in FY 2016-2017 was more than $7.1 million.
Cumberland River Hospital, located in Celina, is projecting a total gross patient revenue of $17,917,239. After deductions and expenses, the facility is estimating a $444,409 shortfall; compared to the reported $1.7 million deficit two years prior.
Tennessee Heart, meanwhile, is projecting a $6,190,245 loss as the center’s operating expenses ($13,957,576) outweigh the center’s projected $7,767,231 operating revenue; however, the projected deficit is more than $530,000 less than the figure ($6,190,345) reported in FY 2016-2017.
The hospital’s budget items still require approval by the Cookeville City Council, which will begin its budget work sessions next month. Their first work session is slated for 1 p.m. May 2 and will be held at the city’s gas department.
