Hospital board set to approve 2021 budget

DAVENPORT – The Lincoln Hospital District is set to review their 2021 budget this Thursday, Nov. 19 with plans to approve a $34 million budget that shows the district in a positive financial state.

A preliminary budget was reviewed by Lincoln Hospital Board members on Nov. 12, with figures showing $34 million in revenue and $26 million in expenses. The largest expense for the hospital district that includes three medical clinics, assisted living, long term and transitional care is staffing. The district employs over 250 people at present, a staff that is anticipated to cost $14 million in salaries and $3 million in benefits during the coming year.

Revenue to the hospital district is comprised of payment for services, as well as a property tax levy as approved the Board of Commissioners each year. The budgeted tax revenue for 2021 is $724,000.

Despite revenue setbacks from COVID-19 restrictions earlier in the year, the hospital is on positive financial footing, said Chief Financial Officer Tim O’Connell.

“Covid is on-going and month to month we are above or below past years numbers for the same month. Compared to last year, we are down an estimated $1.3 million,” O’Connell related. “We have received cares act grant funds from the feds but as of yet still do not have adequate guidance of how those funds should be used. In addition, we applied for and received a paycheck protection program loan that we hope will be fully forgiven.“

While the financial losses to the district are due to not being able to provide elective services, only one person was hospitalized in Lincoln County with the coronavirus.