Update
Budget, Organizational Stewardship and Planning for FY 09
All of us play a role in stewardship of our financial resources. Therefore, it is helpful to understand where we are in the current fiscal year.
- Half of our budget is labor expenses, and half is other expenses such as supplies, minor equipment, computers, etc.
- We are committed to appropriate staffing levels, knowing this is key to quality care and staff retention. In the first 6 months of this budget year we were very successful hiring a greater than expected number of clinical staff, resulting in higher orientation and back-fill costs.
- During the same time period, we have experienced a decline in revenue. This is due to a shift in some types of patient cases, namely fewer complex surgeries and more short-stays. This directly affects the amount we are paid, regardless of how many days our beds are filled.
As a result, we are operating over budget so must correct this by reducing spending, and being creative as we plan for next year's budget. In order to "tighten our belts", we are looking at ways to reduce expenses. Our strategies include initiating the supply chain project (look for more information soon) and holding some positions vacant. Administrators and Managers will be working closely with you to identify opportunities for improved efficiency and to put more rigorous efforts in place to not use overtime. I ask that everyone examine time spent in meetings times, giving consideration to what can be put on hiatus while still honoring our key commitments. I welcome your suggestions as to how to live in a fiscally responsible manner while maintaining the highest quality care and moving forward important patient and staff initiatives.