North Central Healthcare anticipates budget challenges post Pine Crest sale

In a recent meeting of the Marathon County Human Resources, Finance & Property Committee, significant discussions centered around the financial implications of upcoming budgetary changes and the impact of recent healthcare policy shifts. The meeting, held on August 26, 2025, highlighted the challenges faced by North Central Healthcare and the broader implications for county budgeting.

A key topic was the need for a more accurate understanding of the true costs associated with providing healthcare services. Committee members emphasized that as budgeting becomes increasingly complex, it is crucial to assess the actual expenses of programs to avoid overstating financial health. This approach aims to prepare for potential requests for additional tax levies in the future, ensuring that all operational avenues are explored before seeking further funding from the counties.

The discussion also touched on the anticipated challenges stemming from changes in federal funding and healthcare coverage. While no immediate decreases in federal funding are expected for 2026, concerns were raised about individuals losing health insurance coverage, which could lead to an increase in charity care. This situation poses a significant risk to North Central Healthcare, as the organization may face rising costs without corresponding revenue.

The committee also examined the financial ramifications of the recent sale of Pine Crest, a facility previously managed by North Central Healthcare. The loss of this facility is projected to create a financial gap of approximately $1.7 million in the 2026 budget due to the reallocation of indirect expenses that were previously absorbed by Pine Crest. This situation complicates the budgeting process, as the organization must now account for these costs without the benefit of the facility's income.

In addition to healthcare discussions, the committee noted positive developments regarding court funding. Recent updates indicated that additional state funding for court branches could provide a financial boost, which may help mitigate some of the budgetary pressures faced by the county.

As the committee continues to navigate these financial challenges, the focus remains on developing a comprehensive budget that accurately reflects the costs of services while preparing for potential funding shortfalls. The discussions from this meeting underscore the importance of strategic planning in the face of evolving healthcare policies and economic conditions, setting the stage for future budgetary decisions that will impact the community.