Of the $46.1 million capital budget approved by the Phelps County Regional Medical Center Board of Trustees Wednesday evening, almost one-third will go to information technology.
“$14.2 million is for IT, and $12.3 million of that is for a new core information system,” Chief Financial Officer Jana Cook told the Finance Committee in her presentation of the three-year budget.

Of the $46.1 million capital budget approved by the Phelps County Regional Medical Center Board of Trustees Wednesday evening, almost one-third will go to information technology.
“$14.2 million is for IT, and $12.3 million of that is for a new core information system,” Chief Financial Officer Jana Cook told the Finance Committee in her presentation of the three-year budget.
That $12.3 million for the new health information system is for both software and hardware. The last time it was changed was in 2001, according to a prepared statement from Chief Executive Officer Ed Clayton.
This information center will allow hospital staff to keep records electronically, and it will serve all the hospital’s facilities.
“A new core health information system will better coordinate care across the hospital and clinics,” according to Clayton’s statement. “It will offer improved user interface and increase the usability by our caregivers at the bedside.”
It will be the end of 2019 before the new core information system is fully functional.
Cook, in her presentation, used slides to explain the rationale behind the figuring of what funds will be available for the three-year plan.
“This budget assumes all cash flow will be reinvested back into the facility for the community,” she said.
Using a colorful pie chart, she showed the general breakdown for the capital expenditures. In addition to the health information system, or core system, expenditure of $12.3 million, other spending on various information technologies will amount to $1.9 million.
The biggest set-aside is $16.4 million for facility improvements.
Other expenditures are: $2.5 million for nursing services, $2 million for property acquisition, $2.9 million for contingency fund, $300,000 for physician clinics, $7.7 million for other clinical areas.
Looking at specific expenditures, the next four largest after the health information system are: $2.4 million for phase 2 of surgery department renovation; $2,335,227 for the cardiac catheterization lab build-out, $2 million for MRI and $2 million for property acquisition.
Regarding the surgery department renovation, Clayton said in a prepared statement, “PCRMC’s current surgical rooms are smaller than the standard size for most health organizations, so renovating this area will allow for more flexibility in the types of procedures we offer.”
Some other large spending goals include nearly $2 million for a Salem clinic building, $1.25 million for Waynesville Medical Plaza shell space build-out, $1.2 million for build-outs at the Medical Office Building and the Delbert Day Cancer Institute.
There is $1 million set aside for something called an Intuitive Da Vinci SI Robotic Surgical System.
Cook said, in response to a question from new Trustee Francine Merenghi, that this three-year capital expense plan follows up on a two-year plan. Rarely are capital budgets cycled annually, she said; usually they are two- or three-year plans.
The prepared statement given to the news media noted that philanthropic sources for the capital budget total about $1.5 million. No money will be borrowed for the projects included in the budget.
The Finance Committee voted to recommend the capital budget to the full board, which subsequently approved the budget.
The committee also recommended passage of the financial report for April and the annual audit report.
The audit by CliftonLarsonAllen gave PCRMC a clean report, what is called “an unqualified opinion” meaning the institution’s financial statements were found to be accurate following a thorough check by auditors.
Cook also reported that the auditors found “no material weaknesses on internal controls,” another affirmation by the auditors.
The April financial report showed net operating revenues of $19.921 million in net operating revenues, $19.228 million in total expenses and $693,000 in income from operations. That was $578,000 more than budgeted.
Non-operating revenue was $834,000, which was $518,000 more than budgeted.
Net income was $1.527 million, which was $1.096 million more than budgeted.
Uncompensated care totaled $15.880 million for April. At that rate, it will be $47,640,000 by the end of the year.
April’s 252 adjusted average daily census was the institution’s No.1 busiest month. The second busiest month was October 2016 with 251 adjusted average daily census. February and March, each with 247, are also in the top 10 months.
The board also heard a report from Cook and Chief Operating Officer Jason Shenefield on the operations of the Waynesville Medical Plaza. The report showed substantial growth and capture of market share that might have been even more substantial if there had been sufficient physician staffing. The board adopted a list of recommendations compiled by the two administrators.