| 117th Year, 44th Issue | Thursday, June 8, 2006 | Sparta, North Carolina |
Representatives for the Alleghany Memorial Hospital and the Alleghany Wellness Center were among the organizations to make pleas to the Alleghany County Commis-sioners in hopes of getting funding for their causes in this year's budget.
Ralph Castillo, Alleghany Memorial's chief executive officer, began his presentation for a $500,000 request in a standing room only with a great number of hospital employees and supporters. Castillo told the commissioners during 2005, the hospital paid more than $5.3 million in wages and benefits to its more than 150 employees.
"According to a study by the Office of Rural Health, those salaries and jobs helped create another 93 jobs and over $1 million in additional wages and benefits in the local work force," Castillo said. "It's quite the economic impact."
During the presentation, Castillo noted questions regarding the purpose behind the 2003 addition to the facility had been raised.
"Why did the hospital build the new addition at this time?," Castillo asked. "The short answer is we had to. We more than tripled the space in both the emergency department and surgical services." As a result, individuals visiting the hospital no longer have heavy doors to struggle with or steps to climb to gain access to the facility. Other new renovated and updated space Castillo highlighted were the laboratory, as well as X-ray, respiratory therapy and the outpatient clinic.
"In the less than three years that the new addition has been open, the emergency department has increased by over 50 percent," Castillo said. "The OR (operating room) had never been updated from the day the hospital opened Feb. 5, 1951."
When addressing how the hospital's funds are being utilized, Castillo pointed out, "We are in need of recruiting three physicians," stating one physician is slated to retire at the end of next month and he estimated it would cost about $350,000 to replace him. Meanwhile, three other members of the medical staff are seeking to retire in the next few years.
According to Castillo, only 29 percent of hospitals in North Carolina have operated with a healthy operating margin (over 5 percent) in 2004 and 2005. Meanwhile, 46 percent of the state's hospitals were operating with a positive but unhealthy margin in 2004, the number decreased to 37 percent in 2005. In 2004, 25 percent of hospitals in the state were operating with a negative margin. In 2005, that number increased to 34 percent.
Addressing the finances of the hospital, Castillo stated there was a "remarkable difference" between 2004 and 2005.
"During the summer of 2004, as we prepared the 2005 budget, the hospital board had to make some tough decisions regarding potential cuts. The board made those cuts. We went from a $1.5 million cash loss, but that does not include depreciation. If you put depreciation in there, it's over a $2 million loss. We went from a $1.5 million cash loss to $119,000 cash loss, almost a $1.4 million increase in cash flow."
According to Castillo, about 6,844 patients came through the doors of the AMH Emergency Room in 2005. He then stressed the importance of the local hospital by speaking of incidents where time was of the essence.
"If the hospital were not here, where would these people go?," he
asked.
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