Hospital addition, renovations explored

Business plan for 2009 divulged

If Marion County Hospital District #1 follows recommendations from architects, new construction and major renovations could be in St. Luke Hospital’s future.

At the board of directors meeting Thursday, hospital administrator Jeremy Armstrong showed preliminary floor plans of the hospital with updated inpatient rooms, and an expanded operating room (nearly four times its current size), emergency room, radiology department, and physical and occupational therapy (triple the current space).

If renovations occur, then the entire building will have to be brought to code. The original building was constructed in 1952.

Armstrong said the architect was complimentary to staff for running an efficient operation in a small and older facility.

Another change will be all inpatient rooms will be private with private bathrooms. Currently, all patient rooms are semi-private with shared facilities.

The plans also include an MRI suite even though one may not be purchased when the expansion is completed.

No definitive dates for possible construction or further plans were announced.

The board also reviewed and adopted the annual business plan for 2009.

Among the items discussed from the plan were the projected revenue and expenses.

The projected revenue in 2009 is $7,037,081. The estimated revenue in 2008 is $6,643,425 which is a six percent increase.

The most significant projected increase, 50 percent, is at the St. Luke Physician Clinic.

Expenses also are expected to increase by six percent, going from an estimated $7,130,576 in 2008 to a projected $7,524,818 in 2009. The most significant increase, a mere 16 percent, is anticipated for supplies.

However, the net income for 2009 is projected to be $10,000 less than anticipated in 2008, $338,970 and $348,841, respectively.

Board member Jerry Dieter expressed some concern of having only $55,000 projected for capital investment. Armstrong explained that majority of cash on hand will be for a building fund but the hospital will continue to purchase new equipment as needed.

The hospital continues to work toward financial stability. One of the objectives in 2009 is to achieve a two percent operating margin. A three percent price increase for hospital services is also in the plan.