Each year, one of the first steps in North Shore Health’s (NSH) budgeting season is to prepare a recommended levy amount for the Hospital Board. This year the board voted to increase the levy by 10%, about $200,000 spread across all property tax payers. This decision is never made lightly, but NSH depends on levy support to continue providing essential, community focused care in our small rural community. Setting the levy begins with a financial forecast, where we review current and projected revenues and expenses to make informed assumptions about the coming fiscal year.
Revenue Forecasting
To estimate next year’s revenue, we evaluate several factors, including:
• Patient volumes and trends in service areas
• Whether any increases in service charges are planned
• Changes in commercial insurance carriers and their reimbursement rates
• Anticipated changes to Medicare and Medicaid reimbursement
These elements help us understand how much funding NSH can expect from patient care and insurance programs.
Expense Forecasting
On the expense side, we look at projected costs for supplies and medications using data from our group purchasing organization. We also review wage and benefit needs, including anticipated changes in employee health insurance. At this early stage, these assessments are done at a high level to shape the initial levy recommendation.
Levy Submission Timeline
Hospital District proposed tax levy must be submitted to the Cook County Auditor by September 15 each year. After that submission, the hospital continues refining financial details as we finalize our fiscal year budget.
Commitment to Financial Stewardship
The Hospital District Levy is about 6.2% of North Shore Health’s overall revenue. While this income helps us maintain critical services in our small rural community, our team consistently evaluates ways to increase revenue and reduce expenses while maintaining high quality care. We monitor and pursue state and federal programs that support rural hospitals, such as the Rural Health Transformation Program and swing bed legislation. Some programs may not ultimately fit our needs, but each opportunity is thoroughly reviewed to ensure we are making responsible and informed financial decisions.
North Shore Health’s goal is, and will remain, to preserve Community Access to Compassionate Care.
Learn more in WTIP’s recent interview with NSH’s CEO, Kimber Wraalstad: