Small hospitals across Pennsylvania and the nation are experiencing a squeeze as they attempt to increase revenues and cut costs, noted Tyrone Hospital Chief Executive Officer Tommy Bartlett at last night’s 56th annual meeting of the Tyrone Hospital Corporation.
“The issue is not how much malpractice insurance is going to go up, but the issue is if anybody in the state of Pennsylvania is going to underwrite it,” Bartlett said. Tyrone Hospital’s malpractice insurance premiums increased $800,000 in the 2001-2002 fiscal year, which ended June 30, 2002.
Bartlett pointed out that tort reform, or reforming malpractice lawsuit judgements — which have increased dramatically in recent years — and hospital liabilities, would be required before hospitals see any decrease, or leveling off, of malpractice insurance premiums. “The people in the community are going to have to work for tort reform,” he said. Bartlett said that legislators have heard the point of view of hospital administrators and that any real influence to look at tort reform would have to come from the public.
Bartlett said the other major challenge for the hospital relates to the blessing of increased technological advancements coupled with decreased revenues.
“There will be reduction in reimbursements and and increase in costs,” he said. Given the cuts in federal and state reimbursments for procedures and the pressures to keep current with medical technologies and procedures, Bartlett said. He also said the hospital is continually looking for new opportunities to add services that will bring in additional revenue, as well as examining current programs for economic viability.
As for the accomplishments of the hospital, Bartlett said, “The hospital upgraded technology and equipment in various departments, rehabilitation services were expanded, surgical services were enhanced and new physicians were welcomed to the hospital’s staff.”
Chief Financial Officer George Semko reported the hospital experienced a loss from operations in 2002 of $2,065,090. That compares to a loss of $694,240 in 2001. For the 2002 fiscal year, Semko noted a net loss of $3,269,097, which includes a loss from investments of $1,148,013. Tyrone Medical Associates, a physician group practice and a separate for-profit organization that is owned and operated by the non-profit hospital, lost $430,456. The net loss in 2001 was $1,762,072.
“As for how we are positioned as we venture into the next (current) fiscal year, I believe our management team has made some critical decisions in an effort to decrease our losses with the discontinuation of the Partial Hospitilazation and Pulmonary Rehab programs and we will continue to monitor the financial viability of all programs on an ongoing basis, while maintaining an open door for new ventures.”
