The finalized June financial report reads that the utilization of DCHS services on both the outpatient and inpatient areas is down compared to 2017. Outpatient volumes YTD are down 4.0% compared to last year and the inpatient volumes are down 19.4% for the same period. There is an aggressive, direct competitor in our market and they are funneling healthcare dollars into other communities and away from DCHS.
Although, DCHS is consistently right sizing itself and decreasing expenses where they can, the reduction in patient revenues this year is continuing to negatively impact their bottom line. As a result of this decreased utilization, DCHS has reduced its labor force by approximately 10% or 80 Full Time Equivalent Employees (FTE’s) in comparison to its June 2017 employment levels.
“DCHS has always been committed to high quality patient care, this remains our top priority, in spite of the lower volumes the hospital has experienced in 2018”, said John Schon, Administrator/CEO. “The annual impact of these staffing reductions equates to an estimated $4.5 million reduction in our hospital payroll, however if our hospital patient utilization would have remained the same as 2017, we would have been able to maintain a significant number of these jobs. Bolstering our local economy, rather than the economy of other communities where patients are being referred for their patient care. As we are all aware, the health care dollars that are generated in our communities through our insurance coverage’s and from Medicare and Medicaid are limited.”
“If patients are referred out of this community for services that are provided at our local hospital, the result will be the loss of these services in the future. Eventually leading to the further loss of jobs and jeopardizing the hospitals future ability to continue to provide the full scope of services it currently provides for our community 24 hours per day/7 days per week/365 days a year.”
Despite DCHS’s challenges, the health system continues to earn national recognition for their patient safety and service. Just recently, Becker’s Hospital Review has ranked Dickinson County Healthcare System as one of the top 100 Great Community Hospitals in the Nation and in May 2018, DCHS was again named recipient of Healthgrades 2018 Patient Safety Excellence Award. This distinction places DCHS among the top 10% of all short-term acute care hospitals in the nation and recognizes the hospital for its superior performance in the prevention and the occurrence of serious, potentially avoidable complications for patients during hospital stays.
In addition to the Patient Safety Excellence Award, Healthgrades also named DCHS as a 5 Star Award Recipient for:
- The Treatment of Heart Attack for 9 years in a row (2010 – 2018)
- The Treatment of Heart Failure for 3 years in a row (2016 – 2018)
- The Treatment of Sepsis for 5 years in a row (2014 – 2018)
- The Treatment of Pneumonia for 4 years in a row ( 2015 – 2018)
- The Treatment of Respiratory Failure
- Pulmonary Care Excellence Award Recipient for 3rd year in a row (2016 – 2018)
- 2018 Critical Care Excellence Award – Top 10% for Critical Care.
In other business:
- A review of patient activity throughout the month of June showed the following:
- Cared for 220 inpatients;
- Cared for 16,260 patients in the outpatient hospital setting including the Emergency Department;
- Cared for 11,513 patients in physician offices;
- Cared for 1,162 patients in the Emergency Department; and
- Uncompensated Care provided for the month totaled $635,685.
The hospital board also reviewed and approved the financial report for June of 2018. The healthcare system had $8,861,222 in total operating revenue and expenses totaling $9,220,219 that resulted in a loss in operating income of ($358,996). After the calculation of non-operating revenue and expenses, June closed with a negative bottom line of ($436,043).
June’s performance brought the year-to-date for 2018 to a loss in operating income of ($3,600,890). After the calculation of non-operating revenue and expenses, through June the 2018 year-to-date bottom line is a negative ($3,972,416).
- Eide Bailly delivered their Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The report was one of strict compliance and identified no major changes to the 2017 Financial Report.
- The announcement that after 30 years of service, Eileen Sparpana will be stepping down from her position as Chief Financial Officer. Eileen has accepted the Chief Financial Officer position at Bay College and will start her duties there beginning August 20, 2018. Debra Hanson, Controller, will be appointed as the Interim Chief Financial Officer effective immediately.
- The announcement of the retirement of Joy Carlson, after more than 34 years of service as the DCHS Executive Assistant. Patti Mattson has accepted the Interim Executive Assistant Duties.
