Petersburg Medical Center board approves $1.3M FY2026 amendment and adopts FY2027 operating and capital budgets

The Petersburg Medical Center board on June 25 moved to increase the fiscal 2026 spending appropriation by $1,300,000 and approved the FY2027 operating and capital budgets, board members said.

Administration told the board the FY2026 variance—about $1 million—was driven mainly by higher contract nursing and therapy labor ($443,000) and increased employee benefits ($436,000), with additional pressure from utilities and consulting fees. Finance staff said those costs will be at least partially offset by higher operating revenues, including new MRI revenue and stronger 340B income.

Administration proposed increasing the fiscal 2026 appropriation to cover the shortfall and explained that rebasing and a positive Medicare cost‑report settlement tied to increased depreciation from the new work building should help future reimbursements. The board moved and seconded the FY2026 amendment and approved it by voice vote.

Board members then considered the FY2027 operating budget and a $1.85 million capital plan that includes a CT scanner (budgeted at $700,000), beds and other equipment. Administration said the capital plan contemplates borrowing up to $1.4 million via a capital lease for large items rather than using cash reserves.

Board President Cook and four other board members voted yes in a roll call to adopt both the operating and capital budgets; two members were absent. Committee chair Jason summarized the board’s financial position, saying the organization has strengthened cash reserves since the pandemic and now has roughly 133 days cash on hand.

"We have 133 days cash on hand," Jason said, describing the change from roughly 62 days three years ago.

What happens next: administration will implement the approved budgets and bring any required capital‑lease authorizations back to the board when vendors and terms are proposed.

Provenance: Topic introduced at SEG 452 and discussed through SEG 716.