Economic climate affecting hospitals throughout the nation
Did you know that Bonner General Hospital treats more than 57,000 patients per year? Safeguarding our hospital’s financial future is critical to serving our patients, both now and in the future.
Here are a few of the economic realities facing hospitals nationwide and here in North Idaho right now.
Hospitals nationwide are dealing with challenges related to the reimbursement they receive for providing healthcare services, particularly when that reimbursement comes from a federally-funded program such as Medicare or Medicaid. Hospitals are unique because while they provide healthcare services to patients, they are not able to negotiate the amount they’re reimbursed if the patient is covered by one of these government programs.
More than 52 percent of Bonner General Hospital’s patients are covered by Medicare and Medicaid, but neither one reimburses the hospital for the actual cost it incurs in treating those patients.
Uncom-pensated care is also becoming a bigger challenge for hospitals across the country as more people lose their health insurance. Uncompensated care includes charity care provided to people who meet certain financial criteria, as well as care provided to those who are unable or unwilling to pay for it. People must be seen and treated in hospital emergency rooms regardless of ability to pay, which can strain a hospital’s balance sheet. The American Hospital Association projects that the amount of uncompensated care provided by hospitals in 2009 will rise significantly.
The reason these types of payment issues create challenges is because a hospital’s primary source of revenue often comes from the payment it receives for the services provided to patients. Bonner General Hospital derives approximately 95 percent revenue comes from this source, with the remaining revenue coming from grants, investments, property tax dollars and fundraising.
Not-for-profit hospitals like Bonner General Hospital use that revenue to pay the expenses that keep the facility running, such as salaries, medical supplies, utilities, insurance, etc. Any remaining money is reinvested into upgrading the hospital’s services, equipment and physical facilities to better serve the community.
In addition to continually seeking ways to increase revenue and decrease expenses so that money is available to reinvest into its services, the hospital established Bonner General Hospital Foundation last year. The foundation’s board of trustees is comprised of community leaders whose mission is to raise money to fund the purchase of medical equipment and technology for the hospital.
Like hospitals nationwide and businesses here at home, Bonner General must deal with the challenges posed by the current state of our economy. But our mission remains clear: to provide quality healthcare to residents of our community. While the hospital will continue to be subject to external market forces beyond its control, we are fortunate to have a team of employees who are dedicated to ensuring the continued availability of quality healthcare for our community, both now and in the future.
n Lynda Metz is the director of community development at Bonner General Hospital.