UMC Health System presents FY2026 budget, urges attention to bed capacity and staffing; no tax increase requested

UMC Health System representatives presented the health system's proposed fiscal year 2026 operating budget, three-year capital equipment and capital expansion plans and recommended a proposed ad valorem tax rate equal to the no-new-revenue rate, the hospital's representative told the Lubbock County Commissioners Court on Aug. 11.

The presentation, delivered by Dane Funderburk on behalf of the hospital's board of managers, summarized revenue and expense projections for 2026 and warned the court that operational costs are outpacing revenue. "Now, I'm not asking for a tax increase today," Funderburk said, while outlining three principal needs the system faces: additional beds, more medical staff and improved operating margin.

Funderburk told the court the hospital expects net patient revenue to rise by about $61 million in 2026 while operating expenses are projected to increase by roughly $69 million, driven largely by labor costs for physicians, pharmacists, therapists and technicians. He said the operating margin is expected to fall to about 1.3 percent in 2026 and pointed to a spike in capital outlay in 2025…