(Updated with clarifications in bold) by Tracy McCue, Sumner Newscow — The financial shape of Sumner Regional Medical Center has been a constant source of concern for more than a decade. Tuesday night during the audience participation portion of the hospital, SRMC CEO Leonard Hernandez and CFO Kim Weaver updated the Wellington City Council about their latest programs to make the hospital more financially viable at the Tuesday meeting.

Although not specifically mentioned until late in the discussion, the sunsetting of a quarter-cent sales tax designated to SRMC is looming. The quarter cent tax was originally passed by city of Wellington voters to consolidate St. Lukes and Wellington Hospital in the mid 1990s. It was later renewed a decade later to keep funding the hospital. Then voters passed a separate half-cent sales tax in April 2012.

But last month, some council members have mentioned the quarter cent sales tax could go to street repairs. Nothing has been decided by the council and SRMC officials are expected to address the issue in late October. 

On Tuesday, Hernandez and Weaver briefed the council on the various projects the SRMC board has initiated to help the hospital stay solvent.

The hospital has lost $1.4 million so far in 2013 and the average patient day which accounts for both in-patient and out-patient volumes are also down from the year before. Also, budgeted labor cost per patient day is $363. That hasn’t been met by SRMC this year. In month-to-month totals, only in January has the labor costs been below the budget estimates.

The following are budget figures presented by Weaver to the city council:

Updated (9-4-13 – 1:30 p.m.) — Sumner Regional Medical Center Leonard Hernandez said the $1.4 million year to date loss in the budget figures below includes $661,197 in unfunded depreciation and none of this year’s EMR. “We are expecting around $1.1 million to show as additional revenues in November and December of 2013. Also, the hospital has approximately $800,000 in CDs and restricted donation accounts. 

Although, the budget figures do look grim, Hernandez is optimistic that SRMC is heading in the right direction.

Hernandez outlined to the council a program known was the “March to Million” project initiated by the board in April. It’s goal is to collect $1 million in cash and placed in the SRMC coffers. Over the past year, SRMC has whittled its accounts receivables from $7.6 million to $5.4 million. And the hospital now has $285,000 more in operating cash.

“I always go by the motto that ‘cash can solve a lot of things,'” Hernandez said. “And it can. But we have a long ways to go to reach our $1 million cash goal.”

Other sources of income include the electronic records reimbursements which will give the hospital $1 million in 2013 and $600,000 additional in 2014. SRMC will also hopefully continue to receive $200-250,000 from the federal government for being a small hospital with less than 1,200 patient admissions a year. Hernandez said this program was scheduled to expire in 2014, but after visiting with U.S. Senator Jerry Moran it could be continued for one more year.

Hernandez also said the hospital has paid its electric bill since last September when he arrived.

He also said SRMC is looking for a new surgeon, but so far those who have applied are of the retirement age and are looking at a $350,000 to $500,000 salary with benefits.

Wellington Mayor Roger Stallbaumer said he knows times are tough but people need to pay their hospital bill. Council member John Brand said citizens need to “use it or lose it” when it comes to SRMC.

Hernandez said the SRMC budget isn’t scheduled for completion until November. Council member B.J. Tracy said a work session to discuss the sales tax issues is needed.