MOSES LAKE — Samaritan Healthcare is making money, but higher than expected expenses mean the hospital is not meeting its income budget targets.

The hospital’s net income for the year to date at the end of May was $1.693 million, 6.3 percent below the budget target. “The month of May was a strong month for us from a volume standpoint and therefore a revenue standpoint,” said Jim Heilsberg, the hospital’s interim chief financial officer. But more patients mean more employees are required to care for them which increases expenses.

Revenue is higher than at the same time in 2016, Heilberg said; some of that is due to a rate increase, and some is due to higher volume.

Outpatient utilization was below budget projections, Heilsberg said. That reflected a drop in all outpatient surgeries, he said, although orthopedic surgeries were higher than budget projections in April and May. For 2017 to date, orthopedic surgeries are below the budget targets.

For the year to date, the hospital’s expenses are about $1 million above the budget, Heilberg said. More than half of that, about $550,000, is the cost of extra staffing, he said, including salaries and benefits. Supplies have added about $220,000 in expenses.

“Some activity is driving our expenses more than others,” he said.

Inpatient utilization is “the main driver” for increased expenses, Heilberg said. “You can’t predict (inpatient use), therefore you have to get temporary staff, and those usually are either overtime or you get agency staff, and they come at a higher cost.”

Commissioner Joe Akers said outpatient surgical cases were lower in May than budgeted and lower than actual cases in May 2016. He asked why. Heilberg said fewer cases in two departments, ophthalmology (eye surgeries) and obstetrics-gynecology, were the biggest reasons.

Inpatient surgeries are slightly higher than budget, as are obstetrics cases. “They (OB admissions) are numerous in quantity but not as high in dollars.”

Emergency room visits are slightly below the budget target. “We’re going to continue to look at that” to determine why, Heilberg said. But visits to Samaritan Clinic are above the budget target and higher than the same period in 2016.

Hospital officials are looking for ways to cut expenses. “We continue to work on how do we improve that. It’s related to the unpredictability of the staffing needs relating to inpatient activity.”

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