VCHS Board Adopts 2012 Budget

June 28, 2011

At the June 15th Valley County Health System Board meeting, the Fiscal Year 2012 budget was reviewed and approved by the Board of Trustees. 

Total operating revenues for fiscal year 2012 are budgeted to increase by 7.1% compared to fiscal year 2011, reflecting continued growth in the services provided to the people in this region.    After paying all debt service on the bonds and paying all leases on equipment a positive cash balance is projected allowing the hospital to build cash reserves for future bond payments on the new building and keep up with new technologies and services.

The FY 2012 budget does show an operating loss; however this is after all depreciation expense on the new building.  It should be pointed out that depreciation is a non-cash expense and does not negatively impact the cash flow thus allowing the hospital to build cash reserves during FY 2012.  Depreciation and its' impact on the cash flow of a hospital was discussed at length during the community forums held prior to the bond vote taken in 2008. 

The employees of Valley County Health System will work diligently to ensure growth in volume while at the same time controlling expenses. The end result will be a positive cash flow for the hospital allowing the facility to meet all of its' financial obligations.

If you have questions regarding the budget, please call the hospital at 308.728.4299.