QUINCY - The Quincy Valley Medical Center is projecting a profit in 2013, and hospital officials plan to use some of the money to pay Grant County.

The board approved the budget Monday and projected an operating deficit. Operating revenues are projected to be $11.5 million, and expenses are estimated at $12 million. The hospital district expects to have $1.4 million in non-operating revenue, leaving the district with a net income of $786,904 for the year.

The district has an outstanding warrant balance with Grant County of about $2.3 million, said Dean Taplett, the district's chief financial officer. Warrants are issued by the county when a junior taxing district doesn't have enough cash on hand to cover its existing obligations.

"It's more of a cash flow issue," Taplett said.

Hospital officials added orthopedic surgery and respiratory therapy, and are working on reopening the intravenous and wound care therapy departments, he said. The goal is to increase revenue and improve the hospital's payer mix to help the hospital pay down the warrant balance.

"Certainly I believe we're headed in the right direction," he said.

In other business, Michelle Wurl announced that patient rooms and interior hallways will get a new coat of paint.

Local designer Pat Smith volunteered to help hospital employees choose colors, and Quincy Hardware and Lumber donated the paint, Wurl said. It's part of an effort to refurbish the interior of the building, keeping in mind that hospital officials are looking at a remodeling project within the next five years