UIHC sets rates, moves ahead with new clinic

IOWA CITY -- Rates at University of Iowa Hospitals and Clinics will go up 6 percent next year, though the charge increase impacts only a small percentage of patients.

Hospital officials presented the 2010-11 budget plan to the state Board of Regents Wednesday during a meeting in Iowa City. The 6 percent rate increase approved by the regents impacts a very small percentage of patients who are not covered by insurance and pay their own medical bills, or patients under certain insurance programs that are subject to the rates. Most patients are covered by insurance programs that negotiate their own rates with the hospital, officials said.

The 2011 hospital budget, with expected net operating revenue of nearly $976 million, sets an net operating margin of 3 percent next year. The hospital will fund $70 million in capital projects and routine equipment purchases in fiscal year 2011.

Expenses include 2 percent pay increases for medical faculty and salary increases of 3 percent to 5.2 percent for staff. Inpatient volume is expected to grow by 2.2 percent, while outpatient services are expected to grow by 4.7 percent next year.

Also at the regents meeting on April 28, the board gave the green light for hospital officials to move forward with planning on a new $73 million health care clinic in Coralville. The new outpatient care clinic at the Iowa River Landing site in Coralville, just south of Interstate 80, has been in the planning stages for months. Hospital officials will move ahead with signing the agreement with the city of Coralville after the regents approval.

The new clinic is slated to open in May 2012. UI officials will purchase about 1.4 acres of land from the city of Coralville to build the facility. The clinic will be part of a larger development at Iowa River Landing, and the hospital will share some maintenance and other costs with the city.