Medical center approaches fiscal health despite cuts
By Guy Ashley, CONTRA COSTA TIMES REPORTER, The Contra Costa Times
Posted on Tue, Jul. 20, 2004

OAKLAND -Plans to cut expenses and tap into new revenue sources will put the Alameda County Medical Center back in the black in the coming fiscal year after years of chronic deficits, according to a draft budget released Monday.

The draft budget anticipates a net income for the medical center of nearly $2.4 million in 2004-2005, a year after the network of public hospitals and clinics lost an estimated $62 million.

The big funding boost comes from Measure A, the half-cent sales tax increase approved by county voters in March expected to bring in nearly $70 million in the coming year.

The draft budget still calls for eliminating 227 full-time employees, 100 more positions than under a plan adopted by the center's board of trustees in May. It anticipates flat patient volume this coming year, but a 10.4 percent increase in patient revenues, due largely to patient rate increases.

Union officials assailed the budget plan as based on overly optimistic projections. They say it would hamper the center's three clinics, and is a betrayal of voters who in March approved a half-cent increase in the county sales tax to fund public health care programs.

The budget is expected to be finalized by the center's board of trustees this month.

-- Guy Ashley