It looks as if Dallas-based Parkland Memorial Hospital will be dipping into its $54 million in cash reserves to operate next year, The Dallas Morning News reports.
The hospital board unanimously approved a $1.5 billion budget for 2017, despite projections the year will bring increased costs and reduced revenue, according to the report. Parkland is facing financial troubles due to a $105 million depreciation related to its new hospital, an 8 percent increase in costly emergency room visits and a less favorable payer mix. Half of the hospital's patients are uninsured, 35 percent are on Medicaid, 7 percent are on Medicare and 8 percent have managed care plans, according to the report. Parkland expects a $40 million loss next year from Medicare, Medicaid and programs for the uninsured, according to the report.
To help offset these costs, Parkland has removed unfilled positions, salary market adjustments and incentive pay. It also plans to raise prices 5 percent and is projected to bring in 10 percent more in property tax revenue, according to the report. However, even with a $1.5 billion budget, it projects a $38.8 million shortfall, according to the report.
Now the Dallas County Commissioners Court must approve the budget. It will hold a public hearing Sept. 6 and a vote is expected Sept. 20, according to the report.
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