Faced with declines in projected revenue, the North Shore Health hospital board raised the hospital/care center levy for 2020.
Last year the board voted to increase the 2019 levy by $300,000, making the levy to Cook County property owners $1.1 million.
This year the hospital board added $200,000 more to the total, bringing the 2020 levy to $1.3 million, a 62 percent levy increase over the last two years.
In 2009 the levy was $361,346, and in 2010 it was $425,000. The next year, 2011, it jumped to $800,000 where the hospital board’s kept it for the next seven years.
North Shore Health administrator Kimber Wralstad explained the reasons for the recent hike.
“As of July 31, 2019, the Cook County Hospital District had a loss from operations of $957,239. Our volume for 2019 is significantly less than the 2019 budget and significantly less than actual 2018.
“For example, Swing Bed patients days are 174, or 32.3 percent less than budget; ER visits are 272 or 18.8 percent less than budget. This is true of all areas with the exception of acute patient days, which are 31 days ahead of projections, or 25 percent more than budget. Essentially, this means we are receiving less revenue than budgeted and as a result we remain focused on controlling or reducing costs where appropriate.”
Wralstad noted that as with all hospitals in Minnesota, North Shore Health completes an Annual Hospital Report (HAR) for the Minnesota Department of Human Services. This report, noted Kimber, “Requires us to determine the operating income/loss by service line (Hospital, Nursing Home, Home Care, Ambulance). The payments for services received by service line are determined and the allocated expenses are also determined by service line. The allocation methods are standardized by Medicare. In 2018, the operating loss by service line is as follows: Care Center – $1,580,682; Home Care – $374,642; Ambulance – $511,292; Hospital – $58,580.
“Please note the levy and grants are then added to these figures. In the case of North Shore Health, it reduced the loss.
“Given our location and the low population, North Shore Health will likely always be dependent upon the levy. Our goal is to keep it as low as possible while still providing services,” she said.
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