The Estes Park Health Board of Directors unanimously approved the 2024 hospital budget at a special meeting on Jan. 8.
After a postponement of the budget review in Dec. due to changes in calculations for proceeds from the mil levy by the State of Colorado, the budget was updated to reflect these amended calculations.
“One of the things that we always think about in the budget is that it is not a static process,” said Vern Carda, CEO of Estes Park Health. “You always need to plan, think about the future and make changes. The science of creating a budget, putting numbers together and adding them up, is easy. The art of managing a budget is always looking to the future. It is not a static process, it is a dynamic process, always changing.”
Carda reviewed the opportunities and challenges from 2023, which included adding or expanding service lines like pulmonary rehabilitation, cardiac rehabilitation and dietetics counseling services as well as managing employees at different stages in their careers into a cohesive team.
But Carda also reflected on some of the initiatives that were difficult decisions to make but will make a positive impact on the 2024 budget. These included the transitioning of service lines for obstetrics, pediatric inpatient services, in-home hospice and home health care.
As Carda looked to the future, he felt confident Estes Park Health continues to make large strides for high-quality care, embrace new advances in technology for improved patient outcomes and be a place where talented healthcare professionals want to work.
“When Vern and I were presenting to Noon Rotary, one of the questions we were asked was, ‘You have these strategic actions you have put into play, phase one and phase two. You were concerned about the financial performance of Estes Park Health,’” said David Batey, Chairman of the Estes Park Health Board of Directors. “And the question was, ‘Are you headed in the right direction?’”
Batey reflected on the budget changes from 2022 to 2023 and then into the 2024 budget, summarizing that this budget will have a $1.2 million improvement in revenues versus expenses. That is the first time in several years to see a positive number after a nearly $10 million loss in 2022.
“Are we headed in the right direction?” said Batey. “Yes, we are. The strategic actions we described are having the impact that we had hoped for.”
These strategic changes and positive improvements in fiscal performance continue to lead EPH management through the discussions for potential affiliation.
Although discussions continue and no specific details can yet be revealed, Board members, Carda and EPH Foundation Board members all stressed the same thing: affiliation will allow a smaller hospital like EPH to benefit from larger insurance networks, continue to implement technology in patient care and attract the best employees. That affiliation will require EPH to be financially strong, and the discussion at Monday’s meeting emphasized that direction is happening.
Board member Steve Alper summarized how being nimbler in a changing healthcare world will take affiliation.
“As a Board, probably over two years ago, we recognized the direction we were going or had been going over the last number of years just wasn’t viable in a number of different ways,” said Alper. “The amount of technology that is going on and the intellectual capital that we don’t have access to because we are a small system was something that didn’t look promising. We have been on a journey to look at affiliation to resolve some of these issues, but we need to be financially strong to do that. And we also need to concurrently make sure that we are providing the right services in a quality manner for the community.”
EPH Foundation Board member Dennis Hoshiko stressed the importance of working together to achieve long-term success for EPH.
“We are committed to working together with you to ensure the survival of our hospital,” said Hoshiko. “Rural hospitals are closing across the country. I commend you for making the hard decisions.”
In response to Hoshiko, Carda mentioned that he has high hopes that an affiliation will be achieved in 2024.
Board member Cory Workman concurred.
“When it comes to affiliation, hang in there, hang in there with us,” said Workman. “There is a lot of work going on. The future looks bright for Estes Park Health. Given the changes that are happening across the country, the landscape of health care is changing quickly. It is driven by insurance contracts. It is driven by regulations. It is driven by requirements for quality. The leadership [of EPH] and staff are doing an excellent job. There are positive things happening.”
The next EPH Board meeting is scheduled for Wednesday, Jan. 31 at 5 p.m. at Estes Park Town Hall.
For more information about EPH Board Meetings, visit eph.org/about-us/board-of-directors/meeting-information-revised/.
