Proj ect to include
new hospital,
Healt system approves budget with rate increase
By Kelly Davis
' naependem Mall
C i ti n g the increasing
expense of providing health
care a n d inadeqllate pay·
m e n ts from gove r nment
programs compared 10 its
cens. AnMed Health admin·
i s tralOrs asked fo r and
received an I l·perCent price
i n c rease t o ach ieve its
$65 1 . 7 m i l l ion budget.
Approved Sept. 28 a11d
effective Tuesday, the budg·
et w ill carry the health sys·
tern through Sept. 30 next
year. It is expected 10 genet"·
ate 16 percent more revenue
than the just-rin ished 200 1 ·
02 riscal year. bu t ach ieve
j u s t a 5·percent operating
margin. smaller than the 6-
percent margin realized las t
year.
"The k e y thing driving
the increase is the d iffer·
ence between w h a t we
charge and actually g e t
paid , " said AnMed
Pres ident a nd C h ie f
Execut ive Officer John
Miller J r. "We could cut
charges in half if we got
paid in full . "
T h e budgel includes a n
$18 m il l ion ca p i tal plan for
n e w equipment and other
costs required to keep the
heal th sys tem's phys ical
plant and technology up·to·
date. The largest compo·
nents are an updated $ 1 .5
m illion l i near accelerator
for radiation therapy and a
$945.000 information system
for the Anderson Area
Medical Center's heart sur·
gery program.
2002·03 BUDGET FACTS
Note: All fiyures are in millions
Effective dates: Oct. 1 . 2002-Sept. 30. 2003
2002-03 budget
G ross revenue $652
Net revenue $276
Operating expenses $267
Other revenue $5.3
Gain tram operations $ 1 4 million
Operating margin: 5.1 1 %
Source: AnMed Health
C ut t i n g into t h e h e alth
system's n e t i n come are
projected expenses $ 1 6 m lI·
l ion higher than last year.
spokesman Dan Corrigan
said.
Payroll and supplies are
the chief culprits. Payroll
for the system's nearty 4.000
Courtcsv of ArJ.ied:
Change from 2001-02
1 6%
5.74%
6 38%
-1 1 '10
- 1 1 '10
(was 6.02% in 2001 -2002)
emp loyees w i ll c l i m b $ 1 1
m il l ion - to $l l4.2 million
- mostly for salary adjust·
ments to attrac1 and retain
v i ta l c l inical workers. such
a s medical technologists,
said Jerry Parish. vice pres·
Please see Budget. Page 7A
cancer centel."
By Kelty Davis
fn e�en �n:-Mall
An enormous AnMed
Health expansion project
"sHting on lht' launch pad"
had its engines tit by the sys·
tem's board of dIrectors tasl
Satu rday, meanIng i m m i ·
nent lift·off for a women's
and childt;pn's hospital, a
cancer cemer/ office build·
ing and a n outpatient reha·
bili tation cen ter.
At the Saturday meeting
held d u r i n g a hospItal
admin istrator conference in
Hilton Head. the board also
a pproved the health system's
$65 1 . 7 m il l i on budget for
2002·03. including an lI -per·
cent rate in crease to cover
rising operating costs and
income lost l"rom decreasing
Medicare. Med icaid and
health plan payments.
The budgel increase is for
routine capital projects and
operatIOns for the next 1 2
months a n d i s n o t related to
the $l 00-mill ion expansion.
That will be paid tor th rough
bond borrOWIng, cash
reserves and a capital cam·
paign, said AnMed Health
Pres idenl and Chief
Executive Officer John
Miller J t:
"We've been sitting on the
launch pad." Mn Miller said.
"I think i t ·s an exci ting thing
for this community and
courageous of our board.
The risk of this kind of com·
m itmenl is greal." The new
buildings coutd be comptet·
ed as early as summer and
fall of 200-1.
The board set the projects
in motion by voting to sub·
mit applications to the state
Department of Health and
Env ironmental Control for
Certificates of Need to offer
the new services. a require·
ment of state taw when targe
health·related capital proj·
Please see Directors. Page 7A

From Page 1."1.
ects a re proposed.
The applications are the cul m i na·
tIOn of yeJrs or planning and d isc l:c; ·
sian bv the bO�ifCl. i n ternal commit­
tees and cons ul[ants.
B o :nd Chair-man C ha rl i e
Thorn t on. lead partner a l E lliott
D<1v is in Ancierson. sa ie! the board is
con fi de n t it ilas embarked on a path
that is necessa r'j' a n d worthy of com­
m u n i ty s upport.
Most of the mon e y for the expan­
s i ons S65 m il li o n to $75 m i ll ion
. -
sho uld come from 30-yea1' b on e! sales.
[\;[[ Miller said. Cash reserves and
gra n t mOlley w ill be sought to sup·
plement tIlat source. but a m aj o r cap­
ital campaign will be required to
complete tIle p icum:.
" We l hin t, it's t i me lor the c o m m u ­
nity to step up i' ild be (l part of the
health solution. a nci r think there are
peop le \\110 w a n t to be pan of it.·' Mi',
Thornton said.
:Vll� wEller sa ie! the health svs tem
has a large b u dget but h igh operat ­ ices under one roof. The 52.000·
i n g cos t s . a n d wllile it ha s a high
creci it ra t i ng. i ts c u rrent c1eb l m ake s
bOtTO I.'l i n g t h e full pfojecl co s t
imllos s i ble.
" We need to try to eOllrate t h e
c o m m u n i t y a b o u t t i l e fact t h a t
Gl onat i n g t o the s e projects is n o t j ust
giving away m o n e y h e sa l d. "It's an
,"
investment in the infraSIl'llcture of
your comm unity."
The three·story 20Q,OOO-square­
foot women's and children's ho s p i tal
could begin to rise as early as next
spring with comple i o n in t h e fall of
200�. s p o k e s m a n Dan Corr i g a n
sa id. 'I'he can ce r center would bri ng
ou t p at i e n t diagnostic services,
c i1emotherapy., racl i a t i o n therapy,
pain management a n d suppon serv­
squ a re- fo ot b u ilding will cost 3 . 15.5
million to b u i ld ancl equip and could
o p en as early as July 2004. Mr.
Corrigan said.
An adjacent three-sto ry, 60.000-
squa re·foot p i lys i c i a n' s office bu ild­
ing will add another $9 m Ulion to the
pr oj ec t but bring oncologists closer
to pat ients and each other.
Life C h o ice Reh a b i litation at the
Oglesby Center, which serves outpa·
tient customers recovering from car-
ANMED HEALTH CAMPUS EXPAN SION
• Women's and ctlildren's hospl!al
Cost (all are estimates) S67 million
Size (all approx,) 200.000 square feet.
three stories
Completion Fall 2004
�. Comprehensive oncology center
Cost: $1 5.5 million
Size: 52,000 square feet. one story
Completion: .Iuly 2004
" Medical office bu ilding
diac, pulmonary and other s erious
illnesses, would have to be moved
because of renovations related to the
women's and children's h os p ital . Mr.
Corrigan said. The location for a $2-
•
ost: $9 m i llion
Size: 60,000 s qu are feet. three swries
Comp letion: Un known
O S land-alone LifeChoice Rehabiliation
Cente r '
Cost: $ 2 million
Size: Unknown
Completion: Unknown
'Board has not approved
SOUice: AnMed Heah'11
m illion LifeChoice building hasn't
been selected, but a l i kely place is
AnlVIed property acr oss Reed Road
near the Anderson Area ¥iV!CA, he
said.