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Washington Township Health Care District Board of Directors Approves Hospital Fiscal Year2014-2015 Budget

(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