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on 25 KRI M
going to be three years from now, five years from
now, or ten years from now. We make informed decisions
based on assumptions and estimates based on trends and
based on the best facts that we have available. But no
crystal ball is perfect; however, we think that certainly
if these assumptions that we based these projections on come
anywhere close, then the projections themselves out to
come pretty close to it.
1
With that in mind, when we talk about, I believe a
statement was made that in the projections that you are
looking at a room rate doubling over the next five years.
I think if you look at the last five years we have just
finished, generally you can see that most rates have been
doubled because of the unfortunate ravages of inflation.
In preparing these projections, we have tried to have
some estimate of what inflation is going to have, what kind
of impact it may have. As Mr. Nunnery pointed out, there's
a very nominal difference between the anticipated increase in
rates with the new project as opposed to what it would be
without the project.
At Lowrance Hospital, looking at fiscal 1982 to fiscal
1987, you are looking at an annual increase in average
revenue per patient day of 12.8%. That's with the project
as it has been presented. Without the project, if it
tio continues as it is, you will be looking at increases of
roughly 10k% or 2.3% spread.