Grinnell
Regional Medical Center released its annual report, “Mission Possible,” that
summarizes the hospital’s activities and finances during 2011. The annual
report can be found online at www.grmc.us.
The past year welcomed several huge successes for the
community hospital. Topping the list are the installation of new anesthesia
machines and surgical equipment; transition to electronic medical records, and
an exceptional survey review by the Iowa Department of Inspections and Appeals.
Recognition also came in the form of better reimbursement beginning in January
2012 from Medicare.
“Sometimes, running a hospital feels like an episode
of Mission: Impossible. We have a
limited amount of resources and we hold the health and wellbeing of thousands
of area residents in our hands. We do have some pretty elaborate equipment to
save lives—just like super agents. And we do have some amazing people who can
do what seems to be the impossible through their expertise, innovation, and
creativity,” says Ed Hatcher, president of the GRMC Board of Directors. “And,
GRMC was seen on TV – in two different news segments focusing on positive
activities.”
Included in the other major advances, GRMC installed the
new 1.5 T Hitachi Magnetic Resonance Imaging unit; relocated wellness services
to Postels Community Health Park; launched Grinnell Regional Family Practice,
and transitioned the ownership of Deer Creek Health Center. Through a generous donation, GRMC was able to
expand continuing education opportunities offered to staff.
“Fortunately,
many vision-focused individuals chose to support GRMC’s mission and vision. We
reinvested in new equipment, such as the MRI and anesthesia machines. We funded
training and development of staff and supported the medical community. We
provided healthy living education and programs to those we serve. Our mission
also assures that we deliver care to those in our community who cannot afford
to pay,” Hatcher says. “In 2011,
the amount of uncompensated care reached $36,267,358 – the highest level in the
medical center’s history. This staggering amount includes charity care, bad
debt from those who did not pay us, and the largest part from discounts the
government takes from Medicare and Medicaid charges.”
The economy was difficult in 2011 and yet giving to
support GRMC increased. GRMC’s 2011 annual fund drive raised almost $378,166
from 778 donors. Simultaneously, 190 donors contributed $140,000 to upgrade the
hospital’s anesthesia machines. Total
giving through memorials, annual fund drive, and special events reached $684,536
during 2011.
This support helps fund the operations of GRMC. Total
operating revenue from all sources totaled more than $75 million – this includes
patient charges, grants, and other revenue. However, the medical center is not
able to collect all the patient charges, primarily due to Medicare and Medicaid
reimbursement policy and commercial insurance deductions. Because of the size
and location of the medical center, GRMC is severely disadvantaged compared to
other rural hospitals in Medicare payments. In 2011, GRMC had total deductions
of $36.2 million, which allowed GRMC to end the year with a net revenue of
$38.8 million. Total expenses were $42 million, leaving a total operating loss
of $3.4 million.
“In 2011, GRMC worked further to reduced costs over
2010, through expanded group purchasing, shifts in costs for services using our
Mercy Health Network relationship, and personal sacrifices by staff with the
hopes that a short-term forfeit of benefits provides a long-term benefit for
the hospital and the people we serve,” says Todd C. Linden, GRMC president and
CEO.
“Fortunately, the future looks much better given the
improvements to GRMC Medicare payment starting in 2012 as part of the
healthcare reform legislation and our wonderful success recruiting physicians
and mid-level providers. With continued reduction in our expenses the past
several years and these improvements which will enhance revenues, I am
confident we have turned the corner financially,” Linden says. “After seven
months of the current fiscal year, we are operating in the black with a
positive margin of nearly $350,000 which is $2,300,000 better than the same
point last year. This is a significant improvement by any measure and has only
happened due to the hard work of everyone associated with our excellent medical
center.”
For the complete financial report, the lists of donors,
and all the successes in 2011, go to www.grmc.us.
Click on the “About Us” link, then the “Annual Reports” link.
For a printed copy of our donors or more information,
please contact Jan Veach, GRMC office of communications and development, at
jveach@grmc.us or 641-236-2946.