PORT ANGELES — Olympic Medical Center commissioners declared a substantial need and voted to increase the district’s tax levy by 1 percent next year.
The 1 percent increase amounts to $35,594 for a total levy amount of $3,594,969 in 2010.
Unanimous approval
OMC’s six commissioners unanimously approved both resolutions Wednesday at the Port Angeles hospital.
“The reasons are that we have increases in unreimbursed care, increases in cost of wages, equipment and supplies and decreases in reimbursement from federal and state agencies,” said Julie Rukstad, OMC’s chief financial officer.
Clallam County Assessor Pam Rushton said a taxing district the size of OMC’s is allowed to increase its tax levy by 1 percent every year.
“It used to be 6 percent,” said Ruston, until voters approved Initiative 747, which in 2001 limited increases in state and local property-tax collections to 1 percent per year.
OMC’s taxing district covers central and eastern Clallam County.
“The 1 percent increase is, we felt, a reasonable thing to ask for,” said Eric Lewis, OMC chief executive officer.
Lewis said health care and pharmaceutical costs are going up.
Rushton said the 1 percent increase does not keep up with the rate of inflation.
The six commissioners also approved a 2010 budget that shows $134.3 million in operating revenue and $129.8 in operating expenses for a net operating income of $4.5 million.
In his administrator’s report, Lewis gave his monthly update on the status of health care reform legislation.
Earlier this month, the U.S. House of Representative passed the Affordable Health Care for America Act of 2009.
“It’s really focused on providing health insurance reform and coverage for a lot more people,” Lewis said.
“They estimate that it will bring coverage up to about 96 percent of Americans. Currently, about 85 percent of Americans are covered. It does cost over a trillion dollars over 10 years.”
Health bill
The House bill would cut Medicaid reimbursement by about a half-trillion dollars and raise taxes by a half trillion.
Lewis and other OMC officials have lobbied federal lawmakers to address geographic disparity in hospital reimbursement.
Many of the details in the House bill would be determined in studies, so the legislation’s direct impact on OMC isn’t clear.
“Now the shift goes to the Senate,” Lewis said.
“The Senate’s going to spend a few months debating. If the Senate passes a bill and they have to reconcile the bills, then both the House and the Senate have to vote again.”
“So it’s a long ways from a bill. If it happens, it will be well into next year.”
Earlier in the meeting, the board approved a strategic plan for 2010 to 2012. OMC’s revised plan targets December 2017 to erase a $14 million debt.
Three main priorities in the plan are:
• Quality, patient safety and satisfaction.
• OMC and community relationships.
• Organizational performance.
Eight strategies for financial viability are health care delivery system improvements, continued focus on quality and patient safety, electronic medical records and community connectivity, physician recruitment and retention focus, advocacy for adequate Medicare and Medicaid funding, cost management and improved efficiency, volume and revenue growth, and grants and donations.
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.
