PORT ANGELES — Olympic Medical Center has adopted a 2011 budget with $1.5 million in operating income and spending $7.5 million on capital projects.
Hospital commissioners also approved a 1 percent property tax increase Wednesday night in Port Angeles.
OMC forecasts a 1.8 percent margin next year — or less than half of the public hospital district’s 4 percent goal.
As a result, capital spending in the budget is about half as much as normal.
“That’s the economic reality we have to deal with,” said Commissioner John Nutter, who chairs the Budget and Audit Committee.
“My concern is it’s not a sustainable pattern.”
Chief Executive Officer Eric Lewis agreed.
“The way we balance the budget is we reduce capital spending,” Lewis said.
“That, again, is not a long-term strategy.”
The largest piece of capital spending slated for next year is the $700,000 architectural design on an expanded emergency department.
The hospital’s property tax levy was increased by $36,241.
OMC will receive $3.7 million in property taxes in 2011.
The owner of a $250,000 house will pay an extra $1.17 next year, or $117.87 instead of $116.70.
Nutter noted that the tax levy covers about half of OMC’s losses in uncompensated care.
Next year’s budget has $131.4 million in operating revenue and $129.9 million in operating expenses.
In part because of a decline in outpatient volume, OMC projects a $480,829 loss in net income — from $2.9 million this year to $2.4 million next year.
With more than 1,000 employees, OMC is Clallam County’s largest employer.
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.
