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Hospital’s Board of Directors approves FY2012 operating and capital budgets

Last Updated 6/9/2011 10:56:12 PM


Forecast includes an increase in revenues and a healthy 6.4 percent operating margin

Mountain View, CA, June 9, 2011--The El Camino Hospital Board of Directors has approved the hospital’s Fiscal Year 2012 budget which calls for a 6.4 percent operating margin and operating income of $42 million. The budget also includes $47 million in capital spending for key strategic initiatives, facility improvements, medical equipment and health information technology. The Board’s approval was later ratified by the El Camino Hospital District Board of Directors.

The FY2012 forecast represents a $1 million increase from the $41 million in income from operations projected for the FY 2011, which ends June 30.

"The El Camino Hospital Board of Directors is pleased to acknowledge achievement of this expected healthy operating margin and credits the hard work on the part of all hospital employees as well as the recent completion of the Accelerating Continuous Excellence (ACE) performance improvement program," says El Camino Hospital Board Chairperson John Zoglin.

"The overarching health care environment will become even more difficult and stringent moving forward, and the good fiscal management represented by this budget shows we are committed to maintaining the fundamental strength of our organization."

As a result of these significant financial improvements, the Board recently accelerated a planned 3.5 percent base salary increase for both PRN and hospital-represented staff. The Board also modified its previous change to PTO accrual for hospital nursing staff and hospital-represented staff.

The El Camino Hospital District Board also approved the FY2012 Community Benefit Plan and allocated $7.2 million to community health improvement services that provide essential resources to individuals who live and work in the community who have limited access to health care. In 2008, the District Board passed a resolution to invest each year a specified portion of the District’s annual tax receipts to these services. The majority of El Camino Hospital funding is directed toward primary partners, which include:

  • school districts where funds provide nurses, mental health services, health curriculum and physical activity programs;
  •  the Santa Clara County health system where funds provide primary care, mental health and dental care to the underserved;
  •  the RotaCare clinic which serves 2,600 patients with 15,000 services and manages patients with complex conditions and chronic disease; and
  • the South Asian Heart Center and Chinese Health Initiative programs that reach ethnic populations with unique health disparities.

In addition, significant funding supports the Health Library and Resource Center which offers health information and health education to more than 28,000 individuals each year.

"The FY 2012 Community Benefit plan demonstrates the significant commitment of El Camino Hospital to community health improvement services," Zoglin continues. "The needs of the uninsured and underserved continue to grow in this difficult economic climate. The access to healthcare that El Camino Hospital provides is more critical than ever to fill essential gaps in service. "