With extra money from a 7.5 percent rate increase, Carson-Tahoe Hospital plans to hire an additional 22 employees under a budget recommended Thursday evening.
Carson residents can expect to pay about $200 more per visit to the hospital after July 1 as the hospital's finance committee unanimously approved the across-the-board rate increase.
The new rate will affect the prices of everything at the hospital, but may not be put into place at the Minden Medical Center, the hospital's Douglas County satellite, to help the urgent care remain competitive.
"I wrestled and wrestled for a long time with the 7.5 percent increase," Trustee Jo Saulisberry said. "It's just a real hard thing to do. I hope we can prove to the community we're giving as good of care as we had in the past and are still competitive."
The 11-member finance committee accepted the $79 million budget which increases rates and employee salaries between 4 and 6 percent. Salaries will consume 51.3 percent of the budget, up from 48.3 percent this year.
Trustee Basil Chryssos noted that while Carson-Tahoe's rates were lower than rates at Washoe County hospitals, the hospital was competing in the same pool for employees.
"We have to pay our employees the same amount to be competitive," he said.
The hospital is raising rates in response to an estimated $2.2 million reduction in Medicare reimbursements as well as rising costs of pharmaceuticals, blood and labor.
The Board of Trustees is expected to approve the budget April 27 and the Carson City Board of Supervisors will have the final say May 15.
Finance Committee member Ron Little said the hospital was a lot like a business and it could either choose to be self-sufficient or close.
"Carson-Tahoe has managed to maintain itself, if not improve itself, with a minimal increase," Little said. "If you are tied to keeping costs down for five years, you'll drive the facility to the ground. You have to look at quality of care issues, and sometimes it hurts to keep that quality of care."
With the rate increase, the hospital expects to earn about $6.8 million over operating expenses. Profits are slated for use in a $1.5 million bond payment, $2.1 million for equipment replacement and a $2.5 million in hospital improvements.
The hospital raised rates by 5 percent in July 1999 after not raising their rates for two years. The hospital made an estimated $9.6 million in 1999/2000, up from about $6.5 million in 1998 and $8.3 million in 1997.
