GRMC’s 2012 Annual Report Available

Grinnell Regional Medical Center released its annual report, “Composing a Better World,” that summarizes the hospital’s activities and finances during 2012. The annual report can be found online at www.grmc.us.

This year’s report focuses on the importance of a well orchestrated organization that embraces life-advancing technology, new providers, and quality of care.  In 2012, GRMC welcomed eight new medical staff members: Jacob Boyer, PA-C, Grinnell Regional Family Care; Jessie Collun, ARNP, Deer Creek Family Care; Corrine Fogle, PA-C, Lynnville Medical Clinic; Jill Jensen, PA-C, Occupational Health and Wound Care Clinic; Clifford Novak, MD, Grinnell Regional Orthopedics; Joel Rand, PA-C, Grinnell Regional Orthopedics; Pascuala Reyes, DO, GRMC Emergency Department; and Mathew Severidt, DO, general surgeon with Surgical Associates. New clinics included the Grinnell Regional Orthopedic Clinic, and the GRMC Ostomy and Wound Clinic. 

The past year allowed GRMC to add key technology to improve patient outcomes and capabilities for staff and medical providers. In 2012 GRMC had the opportunity to upgrade its digital mammography unit to include breast tomosynthesis, also called 3D mammography. For the benefit of patients and staff, GRMC purchased 22 new patient beds, thanks to the annual fund drive donations.

GRMC ended the year with the unique opportunity to lease a daVinci^® robotic surgical unit. The hope is to raise funds in 2013 to purchase the unit.

“Area residents want and deserve modern diagnostic and treatment equipment to feel confident that they receive the best care. GRMC chose to invest in these technologies for the benefit of area residents,” says Bill Menner, GRMC Board of Director chair. “The bed investment speaks for itself as every inpatient wants a good night’s sleep.”

Menner added, “We finally saw a short-lived improvement in Medicare reimbursement in 2012. We decided to invest in technology for the future.”

GRMC also invested in needed services for the areas when it launched Grinnell Regional Orthopedics and Grinnell Regional Ostomy and Wound Clinic. Both of these specialty clinics provided a specialized service that residents have traveled to other facilities to receive.

Financial Report of 2012

GRMC was proud to report an overall gain of $1,949,927 for 2012, when including non-operating sources of revenue (contributions and gain on investments). GRMC administration, staff, and advocates worked hard for years to secure better Medicare payment for the medical center. In 2012, the medical center finally saw improvement through the Medicare Rural Demonstration Program.

“GRMC was one of twenty hospitals nationally and one of four Iowa hospitals approved for the program that pays for Medicare inpatient services on a cost basis. While this was not the same level of payment received by Critical Access Hospitals, it represented about $1.3 million in additional payment,” says Todd C. Linden, GRMC president and CEO.

The medical center also received large one-time payments of $1.8 million for reaching a government incentive program for meaningful use of electronic health records and a sizable grant to upgrade digital mammography that helped GRMC end the year with a positive operating margin.

GRMC admitted 1,608 inpatients and 48,399 outpatients, including laboratory procedures, radiology procedures, chemotherapy procedures, sleep studies, and surgical procedures. This compares to 1,695 inpatients and 50,707 outpatients in 2011.

Total operating revenue from all sources totaled more than $80 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 2012, GRMC had total deductions of $37.7 million, which allowed GRMC to end the year with a net revenue of $42.8 million. Total expenses were $41.9 million, leaving a total operating gain of $951,740.

 “Unfortunately, the sequestration and the fiscal cliff removed about $1.3 million from our estimated payments for 2013,” Linden says. “We had to make difficult decisions recently to compensate for the dramatic and unexpected reduction in Medicare reimbursement to GRMC. We believe the restructuring in July will allow GRMC to be set for the future. We are very proud of high quality, safe, and efficient care provided at GRMC and look forward to the reforms coming where these things will be rewarded.”

For the complete financial report, the lists of donors, and all the successes in 2012, 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.