The University of Iowa Hospitals and Clinics will likely see a 7.5 percent increase in its fiscal 2012 budget in comparison with 2011, according to the state Board of Regents.

The UIHC’s upcoming budget is predicted at $933.4 million, including more than $70 million in state appropriations from IowaCare.

Regent Robert Downer said the budget was designed partially to offset growing outpatient activity.

"The patient census is up very considerably the last year, which I think in substantial part is attributable to the perception of quality medicine that both referring physicians and the public generally have with respect to UIHC," he said. "I don’t think this is all that unexpected."

However, the agenda detailed further costs from a potential 4.3 percent salary and benefit increase in fiscal 2012, along with rising medical-supply, pharmaceutical, and utilities costs.

The average length of stay was predicted to decrease 0.1 days in fiscal 2012. Though regents discussed growing costs because of longer patient stays over the last fiscal year at a previous board meeting, Downer said statistics were not considered in the 2012 budget.

"That has been a negative insofar as the finances are concerned because a lot of the insurance programs in effect penalize in their reimbursement for longer stays," he said. "This has been a problem that has been difficult for the hospital to get its arms around for an extended period of time … it’s not a participating factor in [the budget.]"

— by Luke Voelz