JOHN DAY — The Blue Mountain Hospital District is back in the black.

After ending fiscal 2022-23 with a $1.4 million deficit, Grant County’s public health district was on track to finish the current fiscal year at the end of June with a modest cash surplus of about $137,000, according to the projections of interim Chief Financial Officer Cory Burnett.

On Wednesday, June 26, the hospital district’s board unanimously approved a $34.4 million budget for 2024-25. While that’s about $500,000 less than the 2023-24 budget, the hospital district is once again expected to finish the year with a positive cash balance, which Burnett projects at around $324,000.

Burnett said the budget turnaround is the result of across-the-board improvements at the hospital district.

“It’s a continual progression of improved operations,” he said.

“We budgeted for 2024 basically zero net income. … We’re beating that (projection) and now we’re doing even better,” he added.

“Hopefully, over the next couple of years it gets better and better. That’s the goal.”

One reason for the sunnier financial outlook is a projected 7.8% increase in projected gross patient revenue. The number includes $365,000 in additional anticipated revenue from surgical services related to expanded dermatology services, general surgery, orthopedic procedures and pain management. It also includes $150,000 in additional lab services related to increased in-house testing and better charge capture, plus $275,000 generated by staff increases for physical therapy, occupational therapy and other rehab services. 

Another positive sign: an anticipated 7.6% decrease in expense for contract labor, which has been a significant cost driver for the district.

The budget includes $862,227 in capital expenditures. The biggest line item is $175,000 for a new ambulance. Other items on the list include about $115,000 for computers, $71,000 for software and $55,000 for IV pumps.

At the same meeting, the board approved a tax rate of $2.1329 per $1,000 of assessed valuation for the hospital district, the same as the current rate. For a Grant County resident with a home assessed at $100,000, that amounts to $213.29 on their annual property tax bill.

The budget projects tax subsidies of nearly $1.5 million for the next fiscal year.

The board also elected officers for the coming year. Chair Amy Kreger, Treasurer Tim Unterwegner and Secretary Nick Stiner were all reelected by a unanimous vote.

The public hospital district, which covers all of Grant County, employs about 250 people. In addition to Blue Mountain Hospital in John Day, it also operates the Blue Mountain Care Center in Prairie City, the Strawberry Wilderness Community Clinic and Blue Mountain Hospice.