Trios Health board adopts 2016 operating budget

The Kennewick Public Hospital District board on Thursday adopted an operating budget for 2016 that anticipates continued growth in patient volumes.

The budget holds the line on staffing, and — if achieved — would mean a bit more breathing room when it comes to cash on hand.

“This budget would actually add about $5 million in additional cash to our balance sheet at the end of the year,” said Tony Sudduth, chief financial officer.

“It takes another step in solidifying our financial position,” he said.

The seven-member board adopted the budget in a unanimous vote Thursday evening.

Wanda Briggs, board member, said it’s a solid spending plan.

“I think it accurately projects revenues and expenses and leaves some money left over,” she said during the meeting. “I think it’s a realistic and achievable budget.”

The budget projects operating revenue of $205 million and expenses of $194 million.

That would leave a net operating revenue of about $10.4 million.

The budget anticipates a 4 percent increase in in-patient numbers and a 5 percent increase in outpatient volumes.

It doesn’t include any major cuts in services, programs or staffing.

The district has about 1,200 employees at two hospitals and a network of care centers, including the Trios Care Center at Southridge, which opened earlier this year.

The district’s had a difficult couple years in terms of finances.

A cash crunch following the opening of Trios Southridge Hospital in 2014 made headlines and prompted layoffs.

The board was divided on handling the situation, with a three-member minority calling for help from a turnaround firm and a four-member majority saying that wasn’t needed.

Consultants ultimately were brought in to help in some specific areas.

The financial position also was a key issue in this month’s election for two board seats.

The board is expected to consider a capital budget for 2016 at a meeting in December.

During Thursday’s meeting, the board also approved a 1 percent increase in the amount of property tax the district can collect in 2016.

This story was originally published November 12, 2015 at 6:42 PM with the headline "Trios Health board adopts 2016 operating budget."