Grinnell Regional Medical Center has released its 2007 annual report, “This is My Hospital,” to the public. The report highlights GRMC’s major accomplishments in 2007 along with the medical center’s financial performance summary.
Within the report, the leadership team states, “Even in a year with substantial losses, we strengthened our balance sheet, improved our facilities, added to our technology, and cut our costs.”
Leading the list of positive stories is the emphasis on patient satisfaction and quality initiatives that prove GRMC meets high quality standards. Participation in quality remained a key focus for the medical center. GRMC embraced five quality initiatives and helped the Iowa Hospital Association task force develop a price comparison website.
A major event of 2007 was the February ice storm, and GRMC provided support for the community through the emergency preparedness team. GRMC and Poweshiek County Emergency Preparedness established a warming shelter and a call center to telephone those without power to get them to a shelter. The effort was praised by Governor Chet Culver as a model for an emergency response.
GRMC showed a different form of support for the community when it hosted the Women’s Health Focus in October. Other community services that garnered attention in 2007 included the Fun with Fitness youth exercise program, Community Care Clinic, Mother-Child Wellness program, and Senior Education program.
In addition to the ice storm, GRMC had to ride out the storm on the financial front. The medical center experienced a $1.9 million loss from operations for 2007 in large part because of Medicare and Medicaid reimbursement challenges. The community support for the annual fund drive and GRMC’s grant-writing program helped lessen the loss. It was a record year for the annual fund drive with $229,452 raised from 828 donors. Total operating revenues, which includes patient charges, grants, and miscellaneous revenues, was $76,402,549. The net revenue, which is the amount GRMC collected and used to operate the medical center, was $44,298,374. The majority of the $30,025,764 difference between gross and net revenues available comes from the Medicare, Medicaid, and commercial insurance deductions. This is the difference between what GRMC charges and the pre-determined rates paid by payers. This amount is not billed to patients.
Operating expenses totaled $46,238,509, of which $29,140,573 or 63 percent went to staffing salaries, wages, and fringe benefits. The operating loss, which is the net loss after expenses are subtracted from operating revenues, plummeted to a negative $1.9 million.
“This has been a financially challenging year. We attribute this mostly to reimbursement issues and physician relocation and coverage,” says Pete Lahn, GRMC board of trustees president. “Despite the challenges we have also found many opportunities to strengthen this organization. We are working on becoming even more efficient. What continues to remain strong is the dedication by our staff to our mission to serve the community. While participating in National Hospital Week activities recently, I was personally reminded of just how caring and friendly our staff is. They provided excellent care in 2007. I’m proud of them.”
GRMC President Todd C. Linden adds, “The bottom line is when you are paid at 67 percent of what you have spent taking great care of your largest patient group (Medicare), you are going to have financial stress. It really is discouraging when the average hospital payment is 95 percent of costs in America’s hospitals. We need Congress to address this inequitable situation soon.”
Linden further comments, “The unfair Medicare and Medicaid payment is not only an issue for hospitals in our state, it also impacts physicians. We have had several doctors move to other states where the income level for doctors is substantially higher than in Iowa.”
Lahn adds, “Our mission and purpose have not changed. We will continue to recruit new physicians, maintain strong relationships with our private practice physicians, add advanced technology to provide the best diagnostic and treatment options, and employ exceptional staff to provide quality care. We are also continuing to work with our state and national legislatures to correct inequities in hospital reimbursements. This would improve our financial performance.
“This is truly my hospital and your hospital. While we continue to address our challenging environment, I would just ask local residents to focus on our positive activities and continue to be supportive,” Lahn says.
Copies of the GRMC 2007 annual report were mailed to all households in the GRMC service area. However, if you did not receive a copy and wish to have one, please call the public relations office at 641-236-2593.
