 | Board of Visitors minutes February 18, 1967 |  |
INCREASES IN CHARGES FOR HOSPITAL CARE
The President reported that, as discussed briefly in the meeting of the Medical Committee on 8 December 1966, it will be necessary to increase the daily care rates at the University Hospital, effective 1 March 1967. These proposed increases which, if enacted, will produce an additional income of approximately $250,000 per year, are necessary for the following principal reasons:
(1) The requirement for Medicare Program reimbursement that charges be properly related to costs and that there be a single rate structure for all patients, regardless of status as private, semi-private, or service patients. The single rate structure for ancillary service was implemented 1 July 1966 to comply with this requirement. The increase in daily care rates is necessary to relate them properly to cost.
(2) The need to maintain private and semi-private charges in proper relation to costs so that State appropriations are not used to subsidize private patient hospitalization costs. Average per diem charges to private patients for the fiscal year ended 30 June 1966 exceeded costs by $2.22 but average per diem charges for all patients were $3.33 less than cost. As mentioned to the Medical Committee, some adjustments in charges for ancillary services have been accomplished and, as mentioned above, a single rate structure was implemented. It is estimated that present average per diem cost is $44-$45 in contrast with $40.86 for the fiscal year 1965-66.
(3) The anticipated impact on operating expenses resulting from implementation of new Federal requirements with respect to payment for overtime. While every effort will be made to minimize overtime, it will be unavoidable in providing adequate nursing coverage, particularly with a marked decrease in student nurse participation in patient care. A recent study projects an anticipated additional wage and salary annual cost for overtime which may approximate $100,000.
(4) The need to maintain a proper relation of charges to costs for services rendered Blue Cross patients in order that the hospital may obtain maximum allowable reimbursement under its participation contract.
(5) The increasing cost of supplies, equipment, and food which were projected in the biennial budget request but which were not recognized adequately in appropriations for the biennium.
Accordingly, the following resolution was adopted:
- RESOLVED by The Rector and Visitors of the University of Virginia that the proposed rates for care at the University Hospital as shown below be and they are hereby approved, effective 1 March 1967:
| ACCOMMODATIONS | EXISTING RATE | PROPOSED RATE | INCREASE | EXTENSION OF DAILY POTENTIAL INCREASE | |
| Private rooms | (34) | $26.00 | $31.00 | $ 5.00 | $ 170.00 |
| Private rooms | (12) | 27.00 | 32.00 | 5.00 | 60.00 |
| Private rooms | (8) | 28.00 | 33.00 | 5.00 | 40.00 |
| Private rooms | (2) | 35.00 | 40.00 | 5.00 | 10.00 |
| Mother-Child rooms | (10) | 24.00 | 29.00 | 5.00 | 50.00 |
| Semi-private | |||||
| Two beds | (280) | 22.00 | 28.00 | 6.00 | 1,680.00 |
| Three beds | (24) | 21.00 | 26.00 | 5.00 | 120.00 |
| Four beds | (76) | 20.00 | 24.00 | 4.00 | 304.00 |
| Pediatric beds, all | (61) | 20.00 | 25.00 | 5.00 | 305.00 |
| ACCOMMODATIONS | EXISTING RATE | PROPOSED RATE | INCREASE | EXTENSION OF DAILY POTENTIAL INCREASE | |
| Psychiatric | |||||
| Private | (8) | $27.00 | $32.00 | $ 5.00 | $ 40.00 |
| Two beds | (7) | 24.00 | 29.00 | 5.00 | 35.00 |
| Three beds | (3) | 24.00 | 29.00 | 5.00 | 15.00 |
| Four beds | (20) | 23.00 | 28.00 | 5.00 | 100.00 |
| ---------- | |||||
| Total Beds | (551) | $ 2,929.00 |
A projection of the above daily potential increase in charges would produce ($2,929 x 365 days x 80% occupancy) $855,268 additional charges on an annual basis.
| Board of Visitors minutes February 18, 1967 | |