Cobleskill Regional Hospital aims to weather the storm of uncertainties facing health care in 2017.
To account for those uncertainties--what happens to the Affordable Care Act and federal funding--CRH sharply cut costs, including staff and other expenses for this year.
But hospital President and CEO Eric Stein stressed that none of the cuts will affect patient care.
Also, he said, CRH has a strong financial foundation from 2016 and was recently re-accredited for three years.
"We finished 2016 very strong financially, better than budget, so we enter 2017 in a very good position," said Mr. Stein.
And, he added, the hospital's affiliation with Bassett Healthcare Network strengthens CRH's position further.
"But 2017 is going to be a challenge for all hospitals," Mr. Stein cautioned. "Nobody knows what will happen to the Affordable Care Act."
The ACA provides "huge amounts of money" to New York hospitals, Mr. Stein added, and it's unclear whether Congress will repeal and replace the act or revise it.
"And the great unknown is President Trump," he said.
In building its 2017 budget, the hospital didn't include federal revenue that may or may not be coming. CRH is also anticipating no increase in patient volume, mostly because of a turnover of physicians.
"We're expecting significantly less revenue than in 2016," Mr. Stein said, adding that the $26 million budget raises expenses by only $100,000 despite normal increases in supplies and services.
To make that budget work, CRH cut costs, including laying off three employees and eliminating nine other positions that had been filled in the past.
"Absolutely, none of these cuts will affect patient care," Mr. Stein said.
CRH will fill any essential vacant positions.
"We do not have a hiring freeze," Mr. Stein said. "Any [vacant] position that's mission-critical will be filled."
The hospital is also holding back on dues-paying memberships to local organizations, participation in seminars and other expenses.
"We have had to look at all expenses," Mr. Stein said. "It's not only the big dollars but the little dollars as well."
He called the 2017 budget a deficit budget, "the first we've had in years," adding that the hospital is still in "very sound financial shape."
The strategy behind the cuts is to close the gap in the deficit budget without dipping too deeply into the hospital's reserves.
"It's like your household budget," Mr. Stein said. "If you have a good savings account, you don't want to spend it down on normal household expenses."
Monitoring expenses will be a key going forward, he added.
"I feel very confident we'll be up to the challenge," Mr. Stein said. "We may not close the gap, but we'll be better than budget."