Tonganoxie residents can expect a new family-practice medical clinic Ãi¿½” owned and staffed by Lawrence Memorial Hospital Ãi¿½” by late summer 2003.

After more than two years of research and discussion, LMHâÂÂs board of trustees voted unanimously during its monthly meeting Wednesday to approve the hospital managementâÂÂs proposal to buy land near U.S. Highway 24-40 and Laming Road to build a clinic.

ItâÂÂs a natural move for the hospital, said Gene Meyer, LMH president and CEO, âÂÂbecause of the growth of Tonganoxie and the opportunity this represents for LMH to expand our service area. WeâÂÂre very excited about it.âÂÂ

The hospital will begin negotiations to buy 1.08 acres of land on the east side of Tonganoxie for $75,000. LMHâÂÂs rough estimate for the cost to construct a 2,500-square-foot building on the site is $312,500.

With an estimate of an additional $75,000 to equip the clinic, the total price tag for the project would be about $462,500.

The hospital also will recruit a family-practice physician to staff the Tonganoxie clinic, through an employment agreement with LMH.

The hospital already has been contacted by three physicians interested in serving Tonganoxie. Two would be available in summer 2003, and the other would become available in 2005.

LMH might add a second physician to the clinic, depending on its business in later years.

Hospital management estimated the development of a family clinic in Tonganoxie would generate, during its first year of operation, about 2,688 patient visits. That could increase LMHâÂÂs market share of Tonganoxie by 5 percent, raising it to 21.5 percent.

The board also approved Wednesday the hospitalâÂÂs budget for 2003, which represents a record in several respects.

LMH projects $98.2 million in net revenue for 2003, an increase of 10 percent since last year. Total expenses for 2003 are budgeted at $94 million, an increase of 9.4 percent.

The 2003 budget reflects an operating income margin of 4.36 percent and a net income margin of 4.93 percent. LMH, a city-owned hospital, is a nonprofit organization.

Outpatient activity in 2003 is projected to increase 16 percent, driven by new services and the expansion of existing services.

Inpatient volumes are expected to increase 2 percent next year, while patient days are projected to increase 6.6 percent.