Hospital continues to operate in the black
CONNELLSVILLE – Additional outpatient services and continued public support have translated into a healthy bottom line for a once ailing local hospital. “We’re still facing the challenges like others in the health care field, but we are operating in the black,” said John Andursky, chief financial officer of Highlands Hospital, on Wednesday, during the annual public board of directors meeting.
This is the second year that revenues have exceeded the hospital’s operating costs.
Andursky attributes the favorable numbers to the hospital’s ability to reduce the amount of free care offered to patients.
“This is accomplished through a more efficient operation,” he said. “This year, however, I believe the (costs associated with free care) is going to be increased because of market conditions and unemployment.”
Other positive contributing factors, said Andursky, is increased patient numbers within the oncology and echocardiology departments and emergency room.
While the independent health care facility shows favorable results for 2002, increases in operational costs will impact the financial picture in the coming year.
“There are still a number of challenges and threats to our operation,” said Andursky.
He said that Medicaid and Medicare reimbursements continue to fall short of meeting the costs incurred by patients utilizing the insurances and that malpractice insurance costs continue to rise.
“Due to the poor financial market, we are seeing escalating pension costs,” said Andursky.
The impact of the hospital being excluded as a caregiver by Highmark Blue Cross/Blue Shield insurance in its Community Blue plan is also being felt within the long-term financial outlook.
Last year, while neighboring hospitals were being included in the network, Highlands was omitted as a participant.
“But, we’re still working on it,” said Andursky.
Of all the challenges, he said, the greatest is other health-related agencies tied to outside the area hospitals offering similar services.
“The predatory practices have created a lot of concern for us,” Andursky said.
Michelle Cunningham, chief executive officer of the hospital, said the facility would continue to expand its services and staffing to meet the needs of the local residents.
The imaging services department is being upgraded and a registered technician added to the staff.
Cunningham said the improvements significantly cut the time patients have to wait to have tests completed so that the physician can make a diagnosis and implement a treatment plan.
A pulmonary clinic has also drawn numerous patients needing care for chest and lung-related health problems, said Cunningham.
“It’s working out very well,” she said.
An advertising initiative that utilizes print and broadcast media has also been implemented by the hospital to notify the public of the services being offered at the facility.
Cunningham said two commercials are being broadcast on local television stations with a third being filmed in the spring.
The hospital is also implementing new federal mandates, according to Denise McCloy, quality and risk manager.
The regulations require the hospital to establish patient safety initiatives and patient privacy guidelines.
Andursky, meanwhile, said despite the challenges facing the hospital, the future appears bright for its continued growth.
“Things are looking good for 2003,” he said.