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Finance committee hears staff projections for pharmacy, rate change and dental clinic revenue
Summary
Committee members were briefed on accounting mismatches, delayed year-end close and three possible new revenue lines — pharmacy/340B, an APM rate change and a newly operating dental clinic — and were told final numbers may not be available until after year-end close.
The Skagway Municipality Finance Committee heard an update on the municipality’s finances and projected new revenue streams during its meeting. Alex Waddell, who presented the accounts reports, told the committee the municipality will begin receiving biweekly actuals to improve monitoring and that year-end accounting differences between the municipality’s system and the clinic’s Athena system are causing temporary variances.
Waddell said the variance report currently appears to show an overspend because two drawdowns have not yet been recorded, and the treasurer expects the year to “more than breakeven” once those drawdowns are posted. “I will get actuals to date, every 2 weeks,” Waddell told the committee, noting the municipality and Athena use different coding and that rebates and adjustments make exact matches rare.
Waddell detailed three revenue lines the committee may see this calendar year: an anticipated pharmacy revenue line and the 340B rebate program, for which staff have a ballpark estimate of about $500,000 combined; an APM rate change affecting Medicaid, Medicare and VA income that staff estimated could add about $750,000 if the change is applied retroactively (the presenter said the amount would be about half that if not retroactive); and revenue from a recently opened dental clinic, which staff estimated could contribute “another $250,000, maybe a little less.” Waddell also described current clinic receipts of roughly $7,500 per day at the dental clinic as an indicator of demand.
Committee members discussed timing and uncertainty. Waddell said the APM-rate discussion included information from Marcy Bish, identified as director of the office rate review, who told staff the last agency to receive the change had the adjustment applied retroactively to the date of application. Waddell cautioned that several estimates are preliminary: “As we’ve never run a pharmacy before, it’s kinda hard to make the predictions,” he said.
Committee discussion also covered accounts receivable and collections. Staff reported that a finance staff member, Sherry Jones, has resigned and will move out of state, and that her duties will be covered temporarily by other staff. The accounts-receivable packet showed payment plans totaling $29,874 with the largest single plan at $9,243; collections activity rose seasonally as unpaid summer charges moved into collection.
Waddell said the fiscal year will not formally close until February and that some audit work for 02/2024 might not be finalized until September. He also noted that the 02/2023 audit report is published and will be included in the next board packet.
Next steps: staff will provide biweekly actuals to the committee, the year-end close is expected in February (possibly into March), and final audit work on 2024 may extend later in the year. The committee did not take a financial vote on these projections during the meeting.
