COEUR d’ALENE — Panhandle Health District leaders revealed during a Tuesday meeting with Kootenai County commissioners that they plan to revitalize PHD’s clinic and double services without asking for additional county funding.

“Our goal is lofty, but it’s a budget-neutral clinic,” PHD Medical Director Dr. Greg Pennock told commissioners. “If we come back next year and haven’t made great progress or achieved budget neutrality for the clinic, you should fire me or find somebody else.” 

PHD Director Erik Ketner outlined the district’s proposed $12.2 million budget for fiscal year 2027, including an ask of about $2.2 million from the county, about 18% of the overall budget. The district requested the same amount from the county last year. 

“The health district has been fiscally conservative in our asks of the county,” Ketner said, adding that the district reduced its request from the county by $280,000 last year. “We have asked for increases on a few years, but generally, we do not ask for additional funding.” 

About 44% of PHD’s funding comes from grants, Ketner said. Fees generated from clinical, health and environmental health services generate about 32% of the district’s funds. The rest of the funding comes from the district’s reserves and from interest. 

Personnel costs make up the bulk of the proposed budget, including $6.1 million for wages and $3 million for employee benefits. These figures are higher than they were last year, Ketner said, due to increased staffing and rising health insurance costs, to the tune of about $2,000 per employee. 

The proposed budget for operating expenses is $2.5 million, a decrease from the prior year. Ketner said the district has seen “significant savings” from changing the contract for IT services and taking an overall “lean” approach toward building the 2027 budget. 

Proposed capital expenditures total $418,000, including an estimated $360,000 to repair the Hayden office’s 20-year-old roof. 

PHD has proposed that $428,000 in reserve funds be set aside to offset the clinic budget. 

Pennock said PHD is trying to solve four major healthcare problems in North Idaho: addressing chronic disease, increasing access to care, filling gaps in healthcare services and building the community’s trust in the health district. 

“We’re going to revitalize Panhandle Health Clinic,” he said. 

Efforts will include strengthening the women’s health and pediatric clinics and emphasizing chronic disease prevention. 

“We’re going to incorporate functional and naturopathic medical treatments and preventions while preserving data-driven scientific medical approaches,” Pennock said. 

Community outreach and educating the public about programs and services available through PHD are also high priorities, with the district planning to hire a public information officer to help facilitate this. 

“We are committed to developing health metrics and outcomes data to measure success,” Pennock said. 

    Ketner