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AnMed OKs Expansion, Oct. 5, 2002

AnMed OKs Expansion, Oct. 5, 2002

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Published by: kellydavis1974 on Jun 28, 2010
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Proj ect to include new hospital, cancer centel.

By Kelty Davis fn e�en �n:-Mall

Courtcsv of ArJ.ied:

By Kelly Davis ' naependem Mall

system approves budget with rate increase
"The k e y thing driving the increase is the d iffer· ence between w h a t we charge and actually g e t paid , " AnMed said Pres ident a nd C h ie f Execut ive Officer John Miller J r. "We could cut charges in half if we got paid in full . " T h e budgel includes a n $18 m il l ion ca p i tal plan for n e w equipment and other costs required to keep the heal th sys tem's phys ical plant and technology up·to· date. The largest compo· nents are an updated $ 1 .5 m illion l i near accelerator for radiation therapy and a $945.000 inf ormation system for the Anderson Area Medical Center's heart sur· gery program.

C i ti n g the increasing expense of providing health care a n d inadeqllate pay· m e n ts from gove r nment programs compared 10 its cens. AnMed Health admin· i s tralOrs asked fo r and received an I l·perCent price i n c rease t o ach ieve its $65 1 . 7 m i l l ion budget. Approved Sept. 28 a11d effective Tuesday, the budg· et w ill carry the health sys· tern through Sept. 30 next year. It is expected 10 genet"· ate 16 percent more revenue than the just-rin ished 200 1 · 02 riscal year. bu t ach ieve j u s t a 5·percent operating margin. smaller than the 6percent margin realized las t year.

Note: All fiyures are in millions Effective dates: Oct. 1 . 2002-Sept. 30. 2003 2002-03 budget
G ross revenue $652 $276 Net revenue Operating expenses $267 Other revenue $5.3 Gain tram operations $ 1 4 million Operating margin: 5.1 1 %
Source: AnMed Health

Change from 2001-02
1 6% 5.74% 6 38%

-1 1 '10
- 1 1 '10 (was 6.02% in 2001 -2002)

C ut t i n g into t h e h e alth system's n e t i n come are projected expenses $ 1 6 m lI· l ion higher than last year. spokesman Dan Corrigan said. Payroll and supplies are the chief culprits. Payroll for the system's nearty 4.000

emp loyees w i ll c l i m b $ 1 1 m il l ion - to $l l4.2 million - mostly for salary adjust· ments to attrac1 and retain v i ta l c l inical workers. such a s medical technologists, said Jerry Parish. vice pres·
Please see Budget. Page

An enormous AnMed Health expansion project "sHting on lht' launch pad" had its engines tit by the sys· tem's board of dIrectors tasl Satu rday, meanIng i m m i · nent lift·off for a women's and childt;pn's hospital, a cancer cemer/ office build· ing and a n outpatient reha· bili tation cen ter. At the Saturday meeting held d u r i n g a hospItal admin istrator conference in Hilton Head. the board also a pproved the health system's $65 1 . 7 m il l i on budget for 2002·03. including an lI -per· cent rate in crease to cover rising operating costs and income lost l"rom decreasing Medicare. Med icaid and health plan payments. The budgel increase is for routine capital projects and operatIOns for the next 1 2 months a n d i s n o t related to the $l 00-mill ion expansion. That will be paid tor th rough borrOWIng, cash bond reserves and a capital cam· paign, said AnMed Health Chief Pres idenl and Executive Officer John Miller J t: "We've been sitting on the launch pad." Mn Miller said. "I think i t ·s an exci ting thing for this community and courageous of our board. The risk of this kind of com· m itmenl is greal." The new buildings coutd be comptet· ed as early as summer and fall of 200-1. The board set the projects in motion by voting to sub· mit applications to the state Department of Health and Env ironmental Control for Certificates of Need to offer the new services. a require· ment of state taw when targe health·related capital proj·
Please see Directors. Page



From Page 1."1.

a re


The applications are the cul m i na· tIOn of yeJrs or planning and d isc l:c; · sian bv the bO�ifCl. i n ternal commit­ tees and cons ul[ants.

Thornton said.

health solution. a nci r think there are peop le \\110 w a n t to be pan of it.·' Mi', :Vll� wEller sa ie! the health svs tem

complete tIle p icum:. " We l hin t, it's t i me lor the c o m m u ­ nity to step up i' ild be (l part of the

C ha rl i e Thorn t on. lead partner a l E lliott D<1v is in Ancierson. sa ie! the board is con fi de n t it ilas embarked on a path that is necessa r'j' a n d worthy of com­ m u n i ty s upport.
Most of the mon e y for the expan­ s i ons S65 m il li o n to $75 m i ll ion sho uld come from 30-yea1' b on e! sales. [\;[[ Miller said. Cash reserves and gra n t mOlley w ill be sought to sup· plement tIlat source. but a m aj o r cap­ ital campaign will be required to
. -

Bo: d n


has a large b u dget but h igh operat i n g cos t s . a n d wllile it ha s a high creci it ra t i ng. i ts c u rrent c1eb l m ake s bOtTO I.'l i n g t h e full pfojecl co s t imllos s i ble. " We need to try to eOllrate t h e c o m m u n i t y a b o u t t i l e fact t h a t Gl onat i n g t o the s e projects is n o t j ust giving away m o n e y h e sa l d. "It's an investment in the infraSIl'llcture of your comm unity." The three·story 20Q,OOO-square­ foot women's and children's ho s p i tal
­ ,"

c i1emotherapy., racl i a t i o n therapy, pain management a n d suppon serv­ ices under one roof. The 52.000· squ a re- fo ot b u ilding will cost 3 15.5 . million to b u i ld ancl equip and could o p en as early as July 2004. Mr. Corrigan said. An adjacent three-sto ry, 60.000squa re·foot p i lys i c i a n' s office bu ild­ ing will add another $9 m Ulion to the pr oj ec t but bring oncologists closer to pat ients and each other. Life C h o ice Reh a b i litation at the Oglesby Center, which serves outpa· tient customers recovering from car-

could begin to rise as early as next spring with comple i o n in t h e fall of 200�. s p o k e s m a n Dan Corr i g a n sa id. 'I'he can ce r center would bri ng ou t p at i e n t diagnostic services,

• Women's and ctlildren's hospl!al Cost (all are estimates) S67 million Size (all approx,) 200.000 square feet. three stories Completion Fall 2004 �. Comprehensive oncology center Cost: $1 5.5 million Size: 52,000 square feet. one story Completion: .Iuly 2004 " Medical office bu ilding diac, pulmonary and other s erious
illnesses, would have to be moved because of renovations related to the women's and children's h os p ital . Mr. Corrigan said. The location for a $2-

ost: $9 m i llion Size: 60,000 s qu are feet. three swries Comp letion: Un known
O S land-alone LifeChoice Rehabiliation Cente r ' Cost: $ 2 million Size: Unknown Completion: Unknown 'Board has not approved

SOUice: AnMed Heah'11
m illion LifeChoice building hasn't been selected, but a l i kely place is AnlVIed property acr oss Reed Road near the Anderson Area ¥iV!CA, he said.

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