The Three Rivers Health Authority Board has adopted operating and capital budgets for 2009.

Action on the spending plans came toward the end of a nearly two-hour special meeting Wednesday afternoon (January 21st), the second budget-related special meeting this month as Three Rivers Health officials deal with financial challenges in a down economy.

The operating budget projects net income for 2009 of just over $400,000 ($404,462) compared to an anticipated loss of $2.8 million to $3 million in 2008.

The capital budget lists expenditures totaling just under $560,000 ($559,821).

During a post-meeting interview, Matt Chambers, President and CEO of Three Rivers Health, characterized the budgets as “very thoroughly thought out” and “conservative in that they’re based on historical evidence.”

Chambers said Three Rivers Health has seen “a slight downturn in outpatient activity” that, in large part, is due to the economic factors and “people just trying to hang on to every dollar they’ve got.”  He said, “We’re not seeing quite as many as we need to and like to so we’re looking at ways to increase the utilization of our facility.”

Chambers said Three Rivers Health is using the new information system in its physicians’ offices “to be able to get to the numbers that we need to in the budget.”

Chambers said, “We believe it’s a good budget, that it’s a solid budget, and that we’ll be able to make it work over the course of the 2009 calendar year.”

Chambers noted that “budgets are forecasts” and said there may be a need at mid-year “to do a re-forecasted budget, depending on how things are going.”

Chambers reported on several promising developments that are likely to provide a boost.  They include ECI – Emergency Consultants, Inc. – the new group that will provide physicians for the emergency room, the recent signing of a “a very talented and very skilled” surgeon who does both general and vascular surgery, and the possibility of securing a loan through the Michigan Hospital Association to consolidate outstanding loans.

Chambers also reported renegotiation with one of the hospital’s major insurance contractors, United Healthcare, which will bring an increase of about $500,000 to the bottom line.  He said the company’s latest proposal is for about a 40 percent increase and said that, although the agreement hasn’t been signed yet, “we expect to do that within the next ten days.”

Regarding a loan through Chase for a new, $3.2 million information system, Chambers said the bank has “decided to exit that loan” so the hospital is “looking for another partner” for the information system.  He said, “We’re looking at other partners, primarily National City.  We’re optimistic about that and we should know that in the next two weeks or so if they’re going to be the partner.”

Regarding the difficult times and the future, Chambers said, “I’m very hopeful.  I’m optimistic about the future and where we’re going.  While it’s challenging, we’re up to the challenge.  We have people here who have hunkered down and are digging in and keeping the nose to the grindstone, if you will.  We provide great service here.  We continue to win quality awards.  We’ll just continue to provide the great care that we always have.  It will keep moving forward.”

To hear the interview with Matt Chambers (10:45), conducted by Bruce Snook of the River Country Journal, click here.

Editor’s Note:  This story was updated at 6:18 p.m. 1-22-09 to add the paragraph regarding renegotiation with United Healthcare, one of the hospital’s “major payers.”