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North Central Healthcare presents balanced 2026 budget; cites staffing and insurance pressures
Summary
North Central Healthcare officials presented a balanced 2026 budget of about $94.4 million, described labor recruitment and health‑insurance cost pressures and noted the sale of Pinecrest reduced indirect revenue; the agency plans multi‑year capital and strategic planning.
Jason, speaking for North Central Healthcare, told the committee North Central’s recommended 2026 budget is balanced at about $94.4 million. He said roughly 70–73% of revenue comes from billable services and a small portion is funded by tax levy; North Central’s overall tax‑levy support was quoted at about $6.7 million, of which Marathon County’s levy contribution is about $5.8 million.
Jason identified several pressures in the budget: difficulty recruiting and retaining clinical staff (CNA, RN, respiratory therapists and behavioral health professionals), an anticipated 10 percent increase in health insurance premiums (about $700,000), and a $3.0 million debt‑service obligation for campus remodel (projected to rise in coming years). To cover staffing gaps, North Central is budgeting approximately $2.3 million for agency (temporary) staff in 2026 and included a 3 percent wage increase costing about $1.3 million.
Jason said the sale of Pinecrest reduced revenue used to cover indirect costs, creating an approximate $1.2 million shortfall the agency addressed with program adjustments and attrition. He said cash‑on‑hand remains strong (cited in the meeting as approximately $34 million, about 130 days of operating cash), which provides a buffer for upcoming transitions.
North Central also presented a five‑year capital plan that includes an enterprise resource planning (ERP) system and a new electronic health record platform; both are expensive multi‑year projects. Jason said the agency is beginning strategic planning in 2026 to prioritize programs and investments as budgets tighten.
Ending
Committee members thanked North Central leadership and asked staff to continue engaging with county officials as state and federal policy changes evolve; no committee vote was requested on the presentation.
