LBJ Medical Center’s projected revenue for fiscal year 2012 does not include the required ASG subsidy for the last ten months of the fiscal year, nor does it include forecasted revenues the hospital plans to garner from the proposed fee hikes, according to the hospital’s financial spread sheet and other information provided to lawmakers.

LBJ’s chief executive officer Michael Gerstenberger told a House Health/Hospital Committee hearing last week that the hospital is projecting a $15 million to $16 million shortfall for the current fiscal year, adding that there is uncertainty in government finances for FY 2012.

According to the hospital, it is projecting $23.63 million in revenues for FY 2012, with only $754,000 in ASG subsidy for October and November, but LBJ is not factoring into revenue any further ASG subsidy payments (for December this year to September next year.)

The hospital hopes to collect about $6.99 million in patient revenues, and information received by Samoa News states that this number does not include projected revenues the LBJ is expected to collect on the fee increases.

How much the hospital is expected to collect in the new fees remains unclear and some lawmakers are trying to get further clarification from the hospital management.

Also not included in the revenue projection is the amount of money LBJ is to get in Interior Department funds for January to September. The hospital is only including the first three months of FY 2012 in its revenues, which comes to $1.58 million. Gerstenberger had stated that the DOI is operating under a continuing resolution as Congress has yet to approve a full budget for the fiscal year.

LBJ is projecting they will receive $9.12 million in Medicaid funding for FY 2012 (with no funding expected for December to March) with $5 million received so far for October and November. Additionally, $4.33 million is projected for Medicare funds in FY 2012.

EXPENDITURES

The hospital is projecting $39.20 million in expenses with the highest amount — $19.56 million in personnel costs; followed by $8.93 million in pharmacy and supply expenses; $2.40 million to pay off what the hospital owes to the Center for Medicaid and Medicare Services due to an overpayment.  (LBJ is scheduled to pay off the debt by September next year.)

LBJ is projecting $1.99 million in utilities and $1.75 million in “purchased services”, according to the financial spreadsheet.

URGENT NEED

Samoa News understands that the most urgent need for LBJ at this point is to find enough revenue to cover expenses for December, which are estimated at $4.12 million compared to only $1.44 million projected revenue.

LBJ’s major expenses for December are personnel costs — which are at $2.1 million because of the extra payroll added at the end of the month.

After yesterday’s government payday, the next payroll is supposed to be Jan. 2, but that is being declared a government holiday to observe New Year’s Day (which actually falls on a Sunday). The payroll, therefore has been moved up to Dec. 30.

LBJ’s monthly payroll is $1.4 million or about $700,000 every two weeks.