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The Pipestone County Medical Center Governing Board during its June 24 meeting approved a fiscal year 2026 budget that includes a projected profit of $534,047.34.
Operating expenses are projected to be $42,301,387.85. The largest share of that — $23,361,443.51, or about 55 percent of total expenses — is projected to be spent on salaries, wages and benefits. Supplies are projected to cost $5,447,717.67, which would be about 13 percent of expenses, and purchased services are expected to cost $4,529,483.26, which would be about 11 percent of expenses. Other expenses include depreciation and amortization, repairs and maintenance, utilities and communications, insurance, claims and other expenses.
Operating revenue is projected to total $40,768,106.82. Most of that is from patient service revenue, which is projected to be $38,007,217.66.
Revenue minus expenses leaves a operational loss of $1,533,281.04. Investment income and non-operating expenses are projected to result in another $788,725.84 in revenue, reducing the projected deficit to $744,555.19. Another $1,278,602.53 from Avera for a non-controlling interest in the clinic is projected to create the $534,047.34 profit. PCMC CFO Sandy Schlechter said the non-controlling interest amount is increasing in fiscal year 2025 due to the addition of a new doctor, who is expected to begin in September.
PCMC CEO Brad Burris warned that this is a time of uncertainty he’s not seen in the industry for about two decades due in large part to potential cuts to Medicaid proposed in House Resolution 1 (H.R.1), otherwise known as the “One Big Beautiful Bill Act” being considered by Congress. He said Avera estimates that the potential impact of H.R.1, as drafted, on its finances would be $16,775,223.
“Just on a back of the envelop calculation, if we take a proportionate hit based on our size, that is $855,785,” he said.