The Alva Hospital Authority on a unanimous vote approved its fiscal year 2026 operating and capital budget, a plan that officials said is balanced and conservatively projects a $5,476 net income for the hospital and an $8,527 net income for the Homestead long‑term care facility.

The budget passed after a motion by Dr. Brown and a second by Mr. Bowman; the roll call vote recorded six trustees in favor (Bowman, Burke, Mossberg, Brown, Hannaford, Martin). Kelly (Chief Financial Officer) presented the budget and highlighted revenue and expense assumptions and capital priorities.

Kelly told trustees the FY26 packet was prepared after meetings with department heads and the finance committee and that the authority’s top priority was presenting a budget that is balanced or shows a positive net income. “The budget that’s presented here is…coming in with a positive net income,” Kelly said.

Nut graf: The budget includes operational assumptions (flat-to-modest revenue growth, a 20% budget increase for supplies and a 3% CPI adjustment to other utilities), planned spending on deferred maintenance and equipment to expand surgical capacity, and an option to finance capital outlays through additional debt that staff said remains subject to approvals and the completion of the 2024 audit.

In the details, the packet lists hospital gross revenue of about $30,000,000 and net patient revenue near $12,000,000; total operating expenses were shown in the packet as $17,521,252 and nonoperating items produced a roughly $5,476 net. CFO Kelly said those figures are conservative and that the authority recently received a $584,000 interim cost-report settlement that will appear on May financials.

Trustees discussed capital priorities, including opening a second operating room and equipment to expand urology, total joint, gynecology and potential pain-management services. Kelly said financing some of the capital outlay appears cash‑flow feasible: “From a cash flow standpoint, we could afford to take on the majority, if not all, of that capital outlay that’s in the budget, finance it out over a few more years, and still be able to cash flow the monthly payment,” she said, but noted any debt would return to the board and the city council for approval.

The budget presentation also noted changes in accounting presentation: charity care and bad‑debt will be recorded as operating expenses rather than revenue reductions to meet Medicare requirements, and depreciation classification in one report page is being corrected.

Ending: Trustees approved the FY26 operating and capital budget by roll call with no recorded dissents. The board chair recommended continued monthly monitoring of actual revenue and expenses and said any major deviations would prompt midyear adjustments.