New budget includes additional positions at Mayo Regional Hospital

Posted Sept. 30, 2011, at 4:52 p.m.

DOVER-FOXCROFT, Maine — Mayo Regional Hospital expects a net operating revenue of $45 million for fiscal year 2012.

The Hospital Administrative District 4 board of directors approved a new operating budget for the hospital and its associated physician practices recently that includes a jump in employment from 390 to 403 full-time equivalent positions. It also projects an increase in both surgical cases and physician office visits because of the addition of two surgeons and two primary care doctors.

Total salaries and benefits at Mayo will reach $29.3 million annually. The budget includes a 2 percent anniversary merit increase for employees, according to Tom Lizotte, the hospital’s director of marketing and development.

After $44.6 million in expenses are factored in, Mayo expects to generate an operating income of $475,000, for a margin of 1 percent, in the fiscal year starting Oct. 1. Net income is reinvested back into the nonprofit community hospital to fund depreciation, acquire new equipment and develop new programs, Lizotte said.

A 3.25 percent general rate increase is included in the budget for all service areas, except for inpatient room rates, he noted.

Mayo’s rate of net bad debt and charity care to be absorbed by the hospital is estimated at 6.35 percent of overall hospital gross patient service revenue, or about $4.7 million, Lizotte said.

In addition to the operating budget, directors authorized a hospital capital equipment budget of $1.5 million. Those funds will replace the hospital’s nurse call system, remount two ambulances, upgrade Mayo’s email and network security software, and make various plant security, maintenance and general improvements.

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