WhidbeyHealth hospital district will remain solidly in the black over the next year while adding new services, according to a budget adopted this week.

The elected members of the board adopted a $175 million budget for 2026 on Thursday. WhidbeyHealth is forecasted to have a $1.169 million surplus at the end of this year and $1.027 million by the end of next year, according to Chief Financial Officer Paul Rogers.

In an interview, Rogers said the hospital’s finances are solid despite the challenges that face all rural health care systems in the nation. The budget assumes that revenues from patients will increase next year by 5%, which is an additional $4 million.

“We’re very busy,” Rogers said in an interview. “Patient volumes continue to increase and we’re adding new services.”

WhidbeyHealth added Eye Care and Surgery this month. Next year, hospital leaders plan to add podiatry and cardiology, the latter of which will focus on outpatient-centric care, according to the hospital.

The hospital administration is anticipating “a stable, ongoing outlook” regarding its bond rating. Last year, Moody’s Ratings downgraded the hospital’s rating into what The Bond Buyer described as “further into junk territory.” To help shore up the rating, early this year the hospital gained access to $10 million in credit for the purpose of improving the rating, although hospital leaders do not intend to access the funds.

Rogers said the hospital should end the year with 19 days of cash on hand. He predicts 21 days of cash on hand at the end of 2026. Hospital leaders have said that the long-term goal is at least 30 days of cash on hand.

Rogers explained that the hospital has its capital projects divided into a series of priorities, from No. 1 to No. 9.

The No. 1 priority project costs just over $2 million and includes a new, $1.1 million phone system. As many patients can attest, problems with the hospital’s phone system have been ongoing for years, even with an investment made five years ago. Another top priority purchase will be a new nurse call system since the current one is at the end of its life, Rogers explained.

The No. 2 priority on the list will cost a total of $860,000 and includes an elevator refurbishment.

Rogers said hospital officials will consider the rest of the priorities on an as-needed basis.

A state audit that covers the year 2023 shows Medicaid accounts for only 13% of patients service revenues at WhidbeyHealth, which means federal cuts won’t have a profound effect on the district. A full 50% of revenues come from Medicare, while 36% is from commercial insurance and only 1% is self-pay.