NuHealth board approves $567M budget

The NuHealth System, which operates the Nassau University Medical Center, approved a $567 million budget for 2011 at the Sept. 27 meeting of the Board of Directors. 

“The adoption of an achievable $567 million budget for 2011 is another sign that the NuHealth System continues to solidify the NuHealth’s foundation and position our health care system to prosper in the future,” said Gianelli. “We produced our first ever operating surplus of $804,000 for year ending 2009, achieved through an extensive list of revenue cycle initiatives, supply chain initiatives, staffing efficiencies, IT upgrades, faculty practice plan realignment and various program enhancements.”

NuHealth’s 2010 operating budget called for an operating deficit of approximately $8.5 million and management’s current projection is an operating deficit of approximately $8.9 million. The 2011 operating budget is expected to produce similar results to 2010 in spite of continued pension increases of approximately $8 million for a total of $33 million and health insurance premium increases of approximately $5 million.

The $567 million budget for the NuHealth System includes a total number of 3,673 employees, including 2,973 at the NUMC, 597 at the AHP and 103 at the various Family Health Centers. The 2011 budget for NUMC is $464 million, for AHP it is $63 million, and the budget for the Family Health Centers is $16.7 million. In addition, the 2011 budget includes $14 million for the Faculty Practice Plan and $9.4 million for the Captive Malpractice Insurance Fund. The budget includes pension expenses of $33 million or 14.3 percent of payroll, while health insurance premiums have been budgeted to increase by an additional 12 percent in 2011, or $5 million.       

“The 2011 budget re-invests in important clinical departments, builds on enhanced Disproportionate Share/IGT reimbursements, includes achievable gap-closing initiatives, and relies on reasonable performance assumptions," Gianelli said. "Management is continually reviewing areas of possible expense reduction and revenue enhancement. The budget for 2011 puts the System, in the near term, on reliable fiscal footing, while giving us the breathing room necessary to continue to implement the Updated Strategic Plan, the Community Health Center Reform Plan, and the $240 Million Modernization Program.”