Hospital district okays budget proposals

The Donley County Hospital District Board accepted two budget proposals to help it deal with a projected shortfall during a called meeting May 31.

Administrator in-training Vicky Robertson submitted revenue projections for Medical Center Nursing Home based on occupancy of 51 residents with no increase in Medicaid funding and no change in employee benefits. The board considered three MCNH budget proposals and approved one that increases LVN salaries by $1 per hour and CNA salaries by 50¢ per hour and gives all other MCNH staff a three percent raise.

Interim administrator Ron Wetzel told the board it was necessary to increase nurses’ salaries to stay competitive.

“It will just be more expensive if you don’t retain your LVNs,” he said.

Following a closed session, the board also voted to increase the salary of the assistant administrator by three percent and raise the salary of the Director of Nurses by $3,090.

Associated Ambulance Authority Directory Anita Aaron submitted four budget proposals for the ambulance service, each of which called for reducing the subsidy the ambulance service receives from the hospital district.

After a closed session concerning Aaron’s salary, the board approved a blended proposal that preserves all employee benefits, reduces the annual subsidy from the hospital district by $16,380, and increases the director’s salary by three percent.

The ambulance service plans to make up for its subsidy reduction through cuts in other areas and improved collections.

Work on the 2005-2006 budget continues this week, according to district officials. Hospital board members on the budget committee said last month that the district has been operating at a loss for several years and has depleted its cash reserves. The district’s fiscal year ends on June 30, and MCNH is facing a projected budget shortfall that could be $80,000.

Cost-cutting measures and last week’s adopted proposals should put the new budget in the black. The district tentatively plans to hold a public hearing on June 20 and to approve the new budget during a board meeting following that hearing.