MOSES LAKE — An increase in inpatients contributed to total operating income at Samaritan Healthcare being above the budget target for the first three months of 2017. And an increase in inpatients contributed to expenses being above the budget target for the first three months of 2017. A review of the hospital’s finances was part of the monthly commission meeting Tuesday.

The hospital’s total operating revenue is about $660,000 above the budget targets for the first three months, said interim chief financial officer Paul Ishizuka. But expenses are about $900,000 above the budget target in the same period, he said.

At the end of the quarter, the financial staff is concentrating on what the information says about the hospital’s bottom line at the end of the year, Ishizuka said. “We’ve got our first quarter, we’re looking down the road at the next nine months. Right now, I’d say we are cautiously optimistic about achieving the net income targets at the end of the year.”

Inpatient utilization is “really strong,” with inpatient admissions about 5 percent above budget projections. “(Admissions) drive net revenue.”

But “I’m not sure that the rest of the year will be at quite that same high level.” Inpatient admissions for the year probably will be above the budget projection, he said.

The hospital is seeing more patients, in part, because additional staff has been in place to allow patients to be admitted to Samaritan rather than being transported out of town. “A decided, concerted effort to keep patients in-house.”

The total time all inpatients spend in the hospital, called patient days, is 9 percent over the budget target. That means more staff and more supplies, which means more expenses, he said.

“We have people we have to take care of in the hospital.” During the first quarter that meant more overtime and more temporary employees, he said. “As we get used to the volume being higher, there are things the CNO (chief of nursing operations) and others can do to mitigate that.” Those include hiring additional staff and adjusting employee hours.

As the staff adjustments start to take effect, they should have an impact on expenses, Ishizuka said.

Emergency room visits are about 3 percent below the same period in 2016, he said. Outpatient surgeries are about at the budget target.

In other business, chief executive officer Teresa Sullivan detailed some of the expenses associated with hiring a new orthopedic surgeon.

Leo Chough starts May 1. He will be the first orthopedic surgeon working for the hospital since 2014. (Currently there are two orthopedic surgeons who practice at Confluence Health-Moses Lake Clinic.)

Reviving the program required remodeling the offices at Samaritan Clinic, hiring an orthopedic physician’s assistant and other staff, adding some imaging equipment and a surgery table designed for specific orthopedic procedures. Total investment was estimated at about $500,00.

The money will come out of the existing budget, Sullivan said. To pay for it, Ishizuka said hospital officials will defer a planned remodel of the obstetrics area and the purchase of some computer software.

Cheryl Schweizer can be reached via email at [email protected].