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News Releases
September 19, 2005
WGHS Board of Trustees approves $124.2
million budget for FY 2006
The
West Georgia Health System Board of Trustees today approved its
business plan for Fiscal Year 2006 plan, which begins Oct. 1.
The plan estimates net revenue to be approximately $124.2 million,
with operating expenses to be approximately $115.8 million. The
net operating margin is projected to be about $3.3 million.
Specifically, the FY '06 budget reflects:
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an overall rate increase
for patients seeking services throughout West Georgia
Health System's divisions. This rate increase is expected to boost
net revenue by approximately $950,000, or one half of one percent
of the FY '06 budgeted gross revenue. The increase does not affect
to Medicare/Medicaid or charity patients. Governmental payor sources
comprise approximately 65 % of the FY '06 budget estimated gross
revenue.
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a 3% system-wide average performance evaluation wage increase
. Employee wages and benefits approximate $60.3 million
and comprise more than 48% of the health system's net revenue.
This merit wage increase will add approximately $1.8 million annually
or 1.5% of the FY '06 budgeted net revenue.
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an estimated $14.5 million write-off for bad debt and
charity care , which amounts to 11.7 % of the system's
net revenue.
The WGHS management team recommended the rate increase based on
a comprehensive analysis for services rendered by the health system.
The Board of Trustees last approved a limited rate increase in
Fiscal Year '04.
ìWe recommended this net revenue increase to our board based on
a thorough analysis conducted by Pershing Yoakley and Associates,
our independent auditing firm,î says WGHS President/CEO Jerry
Fulks. ìThrough this comparative study with peer hospitals not
only in Georgia and Alabama, but also in the South Atlantic region,
we learned that our charges are approximately 11 % lower than
our peers.î
In fact, 90 % of the health system's charges were lower than those
submitted by Georgia and Alabama peer hospitals, and 83 % were
lower than charges submitted by peer hospitals in the South Atlantic
region.
ìThis will help us secure a fair payment
for the services we provide in relation to our peers,î Fulks points
out. ìWhile this rate adjustment still falls below charges of
the peer hospitals in the study, it will help us strengthen our
bottom line to secure financing for our future growth.î
In the past, West Georgia Health System has been the beneficiary
of generous philanthropic gifts and community support for
its expansion projects. ìWe are deeply grateful that this generosity
from our community has enabled our health system to build modern
facilities and offer top
quality programs and services ó virtually debt-free.î Fulks says.
ìWe will soon embark upon a multi-million, multi-phase
construction project to update and replace our aging facilities
so that we can provide state-of-the-art medical services for the
people of our community,î Fulks adds. ìFor the first time in more
than 25 years, we will be approaching the bond market to help
secure financing to fund this project. It is imperative that we
have strong financial operations to achieve that goal so that
West Georgia Health System will continue to be our community's
health care cornerstone for generations to come.î
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