Mountain View, CA - June 23, 2009 - The El Camino Hospital District board of directors has approved a $630 million budget for fiscal year 2009-10 that allows for the activation of two hospitals in this calendar year, funds continued investments in quality initiatives as well as new service initiatives in community health. No increases in room rates or charges are planned for the 2009-2010 fiscal year.
"We are fortunate to be able to make investments in the health of our community," says Chief Executive Officer Ken Graham. "El Camino Hospital is in a solid financial position, thanks to our conservative fiscal management over the years."
As a not-for-profit organization, El Camino Hospital reinvests its earnings from the hospital and healthcare services back into the community in the form of capital expenditures, "brick and mortar" improvements, new services and technology. A portion of its earnings are placed into cash reserves for future capital needs.
The hospital is projecting 19% higher patient utilization as a result of opening its second location in Los Gatos and the opening of its new earthquake resistant hospital in Mountain View. According to Graham, the two hospital sites will bring more than $500 million in new facilities and equipment into service by December.
Improvements in efficiency are expected due to physicians performing an increasing number of minimally invasive and robotic procedures resulting in shorter hospital stays, quicker recovery time and less pain for the patient. Additionally, new healthcare services and technology will be provided by its Heart and Vascular Institute, Cancer Center, and Women’s Hospital. A high-tech CyberKnife radiation therapy service will also open in early 2010.
Partnering with the community
The board approved $5.2 million in community health improvement projects for the 2009-2010 fiscal year. In 2008, the board designated a portion of district tax receipts to be invested each year in community partnerships and programs that would have a direct and meaningful impact on improving the health status of local residents. Included are nearly 25 partnerships and programs in 2010 to provide health insurance coverage for children, the RotaCare Free Clinic, partnering with local schools to expand school nurse programs, providing mental health and dental services for the underserved, and helping seniors manage chronic illness.
Budget highlights:
- A projected 26% increase in operating revenue, based largely on activation of the Los Gatos campus.
- Nearly $619 million in expenses, which includes the costs of activating two hospitals: the recently purchased El Camino Hospital Los Gatos, scheduled for a July opening, and the new seismically compliant hospital building on the Mountain View campus due to open in November, as well as the costs of hiring 454 FTEs (the majority for the Los Gatos site).
- A 3.2% net operating margin for the 2009-2010 fiscal year after accounting for the costs of the two major new hospital activations.
- $75 million in capital expenditures--
- more than $20 million earmarked for seismic upgrades and new equipment for the Los Gatos site
- $16.5 million will be invested in information systems and health information technology
- $11 million for medical equipment for the new Mountain View hospital.
About El Camino Hospital
El Camino Hospital, ranked among the top five percent of hospitals nationwide for clinical excellence by HealthGrades, is a 542 bed acute care, not-for-profit and District owned organization with campuses in Mountain View and Los Gatos, California. Key medical specialty focuses include cancer care, heart & vascular, neuroscience, genomic medicine, orthopedic & spine and a women’s hospital.
El Camino Hospital has delivered excellent medical services to the communities of Silicon Valley for more than four decades. The hospital is also recognized as a pioneer and national leader in the use of health information technology to promote patient safety, including computerized physician order entry (CPOE), electronic medical records and wireless communications.
To learn more about El Camino Hospital and its services in Mountain View and Los Gatos, visit our website. Anyone interested in future openings with El Camino Hospital can send an e-mail to hr@elcaminohospital.org with “Los Gatos” in the subject line. Physicians are encouraged to call the physician hotline at 650-988-7698. People interested in volunteering with the hospital should call 650-940-7214.
