The Oak Valley Hospital Governing Board moved forward on Wednesday, June 27, approving its 2012-2013 Fiscal Year budget and a three year strategic plan to carry the hospital into 2015 as it transitions into a new facility.
According to Chief Executive Officer John McCormick, the $55 million budget shows a $3 million loss “on paper” but he reported that the hospital should have a “positive cash flow” nearing $4.2 million.
The loss was explained as depreciation of the new building when finally moving in next month and paying off old debts.
During its financial report, McCormick reported that Oak Valley Hospital was operating at a $362,000 profit for this year.
McCormick described the new budget as “aggressive.”
“We have to change our culture; we have to change our path,” said McCormick. “Healthcare is going from volume based to value based.”
The board also approved a capital improvement budget of nearly $4.3 million, identifying an MRI machine and including a $500,000 building fund and $500,000 for contingency expenses.
For more of this story, look to the July 4 edition of The Leader.