Depending on how it is calculated, Parkland's surplus could reach $133 million. The hospital's operating budget for fiscal 2006 is $857 million.

News of the surplus comes at a time when Parkland's top officials are begging neighboring counties to cover a greater share of medical costs for their residents and as county leaders are demanding that Mexico and other foreign countries pay for the hospital's treatment of illegal immigrants.

"We've placed a big emphasis on collecting as much money as possible from the patients who can pay to pulling down as much federal funds as possible," said County Judge Margaret Keliher, who heads the Dallas County Commissioners Court and has pushed for tougher business practices at the county hospital in recent years.

As recently as 2003, Parkland was struggling with a $76 million deficit caused by state and federal funding cuts. There was a slight surplus in 2004.

"This is feast or famine, and we are in the middle of a feast right now," Janice Holliday, the hospital's director of operations support, said Tuesday during a meeting of the hospital's board of managers.

"It's a pretty healthy bottom line," said John Gates, Parkland's chief financial officer, who calculated that the hospital would end the year $133 million above its spending plan.

The biggest chunk of the surplus is a long-awaited $72.5 million settlement of a Parkland lawsuit against Texas. The legal dispute stemmed from the state's reduced funding for the hospital's Graduate Medical Education program from 2000 through 2003.

"The state typically uses Medicaid funds to reimburse a teaching hospital for the cost of running a physician training program," Mr. Gates said. "It's supposed to cover the extra cost of supplies, tests and drugs that new doctors often dispense."

Another one-time bonus this year is the pending sale of the old Woodlawn Hospital at Maple and Oak Lawn avenues, where Parkland formerly operated. It expects a $13.4 million profit from selling the historic 8-acre site to a private developer.

Richard Kneipper, chairman of the hospital board's finance committee, said it would be unfair to count the funds from the settlement and the hospital sale as a budget surplus for Parkland.

"These just happen to impact us this year," he said. "Without them, our operating profit is closer to $45 million, which is ahead of our budget. And it's terrific if it comes in."

Mr. Kneipper proposed, and the board approved, setting aside the settlement funds to help pay for future replacement of the hospital, which was built in 1954 to serve a fraction of the patients that Parkland handles today - about 250,000 individuals annually.

He gave credit to the current and previous hospital boards that worked to install stronger business practices, as well as the willingness of hospital administrators to change their ways.

The financial news comes a week after the hospital announced the impending departure of its second chief operating officer in the past three years, who complained of micromanagement by the board.

The hospital's surplus also was expected to include $9 million in additional federal funding for the treatment of predominantly lower-income patients on Medicaid, the state-federal insurance program.

Additionally, Parkland now anticipates $2.2 million in additional trauma funding from the state and $1.4 million in interest income, among other unexpected sources.

Dr. Ron Anderson, Parkland's president and chief executive officer, warned, however, that certain federal funds could dry up in two years. Hospitals are fighting recent Medicaid cuts approved by Congress, he said.

Parkland has long struggled for adequate funding and has pleaded in recent years for local tax increases from the Commissioners Court, which approves the hospital's annual budget and tax rate.

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