THE JUAN F. LUIS HOSPITAL AND MEDICAL CENTER AND THE FREDERIKSTED HEALTH CARE, INC. SHARES THE FISCAL YEAR 2023 EXECUTIVE BUDGET

ST. THOMAS – Members of the Committee on Finance, chaired by Kurt A. Vialet, convened in a meeting at the Capitol Building and received testimony on the proposed Fiscal Year 2023 Executive Budget for the Governor Juan F. Luis Hospital and Medical Center (JFL) and Frederiksted Health Care, Inc (FHC).

Douglas Koch, Chief Executive Officer of the Governor Juan F. Louis Hospital, in his opening comments indicated that the FY 2023 operating budget totals $77,889,083. “This conservative balanced budget projection is determined by projected revenue decrease during the transitional period from JFL to JFL North, also known as modular buildings,” indicated Koch. In response to Sen. Vialet’s inquiry regarding the deadline to complete the transition, Daryl Smalls, Executive Director of the Hospital Redevelopment Team, stated that the deadline is August 2022. The breakdown of FY 2023 projected expenses is as follows: $32,756,501 for salaries; $22,162,707 for fringe benefits; $54,919,208 for personnel costs; $8,938,315 for supplies; $4,246,538 for utilities; and $9,785,022 for other services.

Additionally, the breakdown of projected revenues in the operating budget is as follows: $142,453,876 for gross patient billing; $47,562,605 for net collections; $26,750,000 for VI government billing; and $3,576,478 for other services. Senator Dwayne DeGraff asked if some of the revenue would be invested in JFL’s current structure to ensure that employees work in a comfortable environment. Koch mentioned that the ability to put additional funding into the structure is not in the FY 2023 budget. Sharing an overall financial overview, Koch noted that JFL account payables as of May 2022 total $25.3 million, uncompensated care is $40 million, the interagency debt is $10.7 million, and $88.12 million was spent to date on project worksheets while $87.91 million was reimbursed.