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 firstname.lastname@example.org or 641-236-2946.