MOSES LAKE — Revenue at Samaritan Healthcare is expected to decrease in 2017, although hospital utilization is expected to increase. That was part of a discussion of the hospital budget at the regular commission meeting Thursday.

Commissioners approved a 2017 budget projecting $74,863,000 in revenue and $73,955,000 in expenses. Chief financial officer Paul Ishizuka said those projections include an overall five percent rate increase.

Ishizuka said the number of patients using the medical-surgical unit is projected to increase about one percent, and the number of obstetrics patients was projected to increase about four percent. Emergency room visits were expected to increase by about one percent. Outpatient treatment was forecast to increase three percent.

But total operating revenue was only expected to increase about one percent, Ishizuka said. That’s due mainly to anticipated reductions in Medicaid reimbursement, he explained.

Commercial insurance revenue is projected to increase by about two percent, and Medicare revenue by about one percent. But Medicaid revenue is expected to drop by about four percent, he said. Commercial insurance, Medicare and Medicaid each account for about one third of the hospital’s gross revenue.

The hospital is a public hospital district, and has a maintenance and operations levy; the levy assessment is 50 cents per $1,000 of assessed property value. For 2017 the levy is expected to generate an estimated $2.1 million.

Salaries and benefits will account for about 60 percent of expenses, Ishizuka said. The budget includes wage increases between two and three percent, and that also impacts benefits. “If the salaries are higher, the benefits are going up.”

The hospital’s health insurance is provided through the state, “and they tell us what the rates are going to do from year to year.” For 2017 hospital employee insurance rates will increase 12 percent.

Chief executive officer Theresa Sullivan said district officials plan to hire a new manager for Samaritan Clinic and a separate person to be in charge of recruiting new doctors, nurse practitioners and physician’s assistants. Both of those were existing jobs, but had not been filled while hospital officials were in discussions with Confluence Health about possible affiliation. Those discussions ended earlier this year, and Sullivan said those jobs now need to be filled.

The hospital will hire new staff, the equivalent of two full time positions. Where those people will be working is still to be determined, Sullivan said. The goal is to have enough staff to avoid transferring people from the hospital due to a shortage of staff in the medical-surgical unit, she added.

The hospital also will change its food service program, allowing more flexibility for patients. A “director of quality” will be hired as well.