(Fremont, Calif.) - Last night, the Washington Township Health Care District Board of Directors
approved the Washington Hospital Budget Estimate for FY2014-2015, which
begins July 1, of $482,664,000 in expenditures. This represents a total
net income for Washington Hospital (before general obligation bond tax
revenue) of $5,700,000, which represents a 1.2 percent net margin. This
budget takes into account rapidly changing economic conditions, known
and anticipated reductions in reimbursement from the Affordable Care Act
and Medicare and decreased patient care activity.
Included in the FY2014-15 budget is a $21,353,000 reduction in total operating
expenses which represents a 4.4 percent reduction compared to projected
operating expenses for FY2013- 14. The largest decrease in operating expenses
is in salaries and benefits of approximately 9.1 percent. Much of these
reductions have already occurred this current fiscal year through attrition
and staffing for lower volumes.
“This year’s budget reflects Washington Township Health Care
District’s efforts to match the volume of patients Washington Hospital
is now seeing and the decreases in reimbursement that all hospitals are
facing. We are determined to use the resources we have to provide the
greatest benefit to our community,” said Bernard Stewart, D.D.S.,
president, Washington Township Health Care District Board of Directors.
“We have a long, strong history of providing high quality health
care programs and services at this Hospital, and we will continue doing
what we need to do to provide the best care to the District’s residents.”
The current environment is not unique to Washington Hospital. In fact,
hospitals across the Bay Area and the country are experiencing identical
financial challenges as the Affordable Care Act and Medicare continue
to significantly reduce payments to hospitals. “We are committed
to remaining a health care leader in the Bay Area and supporting the needs
of our community,” said Nancy Farber, CEO, Washington Hospital Healthcare
System. “Until something significant changes with regard to health
care financing, we’re going to have to maintain a disciplined focus
on our core services and do more with fewer available resources along
with developing new models to provide care to our District residents.”
About Washington Township Health Care District Washington Township Health Care District is governed by an elected board
of directors. Unlike a municipal or county hospital, Washington Hospital’s
operating expenses, research, community programs, and employee salaries
are funded by revenues generated through providing patient and other health
care services. Washington Hospital Healthcare System includes a 359 acute-care
bed hospital; the Taylor McAdam Bell Neuroscience Institute; The Gamma
Knife® Center; Washington Radiation Oncology Center; Washington Outpatient
Surgery Center; Washington Outpatient Rehabilitation Center; Washington
Outpatient Catheterization Laboratory; Washington Institute for Joint
Restoration and Research; the Institute for Minimally Invasive and Robotic
Surgery; and Washington West, a complex which houses Washington Women’s
Center, Outpatient Imaging Center, Sandy Amos R.N. Infusion Center, Washington
Urgent Care and additional outpatient hospital services and administrative
facilities