Welcome. Community Benefit Report IN THIS REPORT
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1 2011 Community Benefit Report Welcome PeaceHealth publishes this annual report to the community because the community is literally part of our mission: We carry on the healing mission of Jesus Christ by promoting personal and community health, relieving pain and suffering, and treating each person in a loving and caring way. At PeaceHealth, we understand and take very seriously our responsibility to serve the community through our hospitals, medical groups and related health services. We are the region s largest employer, the largest provider of health services, and by far the primary source of care for the poor and uninsured. For all these reasons, we are pleased to share with you this annual accounting of how we re doing, who we re serving, and where your IN THIS REPORT What is PeaceHealth? By the Numbers Financial Reports Monthly Milestones health care dollar goes. Your health care is important to you, and to us. Health care is becoming more and more challenging. Pressure to reduce costs collides with increased capability and demand for services. On top of this, fewer and fewer people have traditional commercial (typically employer-sponsored) insurance that pays the full cost of care. As we enter an era of health care reform, these pressures will only increase. PeaceHealth is working hard to extract costs from its processes and systems to be prepared for what the future brings. If you have any comments or questions, please share them with us at publicaffairsphor@peachealth.org.
2 What Is PeaceHealth? PeaceHealth traces its origins to Bellingham, Wash., in 1890, when the Sisters of St. Joseph of Peace arrived to establish a hospital to serve the loggers and fishermen of the Pacific Northwest. Hospitals in Ketchikan, Eugene and Longview were added, and in 1976 the Sisters formed a nonprofit company, then known as Health and Hospital Services, to bring them together under one organization. The name was changed to PeaceHealth in For fiscal year , PeaceHealth has one hospital in Alaska, four in Washington and four in Oregon, all in Lane County. Other PeaceHealth services include clinics and PeaceHealth Laboratories, also based in Lane County. PeaceHealth Laboratories and Peace Harbor Hospital, while based in Lane County, are separate business entities with their own leadership teams and boards of directors. For more information, visit PeaceHealth Oregon Region encompasses hospitals and clinics located in the Eugene-Springfield metropolitan area, including Cottage Grove: at RiverBend at University District Cottage Grove Community Hospital and Clinics Cottage Grove Community Hospital South Lane Medical Group Cottage Grove Creswell Dexter PeaceHealth Medical Group Barger Medical Building Downtown Eugene Junction City RiverBend Pavilion Santa Clara South Eugene University District Nurse Midwifery Birth Center PeaceHealth Check-up 4J Wellness Clinic PEACEHEALTH OREGON REGION PAGE 2
3 PeaceHealth Oregon Region By The Numbers JULY 1, 2010 JUNE 30, 2011 FY 2010 FY 2011 Number of licensed beds:, RiverBend: , University District: Cottage Grove Community Hospital: Annual admissions: Sacred Heart, RiverBend 26,437 26,438 Sacred Heart, University District 2,794 2,661 Cottage Grove Community Hospital TOTAL 29,668 29,512 Days of inpatient service: Sacred Heart, RiverBend 101, ,963 Sacred Heart, University District 18,765 19,484 Cottage Grove Community Hospital 1,182 1,075 TOTAL 121, ,522 Number of babies born annually: Sacred Heart, RiverBend 2,867 2,889 Number of surgeries performed: Sacred Heart, RiverBend 16,260 15,996 Number of emergency-room visits: Sacred Heart, RiverBend 49,355 51,717 Sacred Heart, University District 26,214 25,187 Cottage Grove Community Hospital 11,347 11,170 TOTAL 86,916 88,074 Number of clinic visits: PeaceHealth Medical Group 363, ,789 PeaceHealth Medical Group Urgent Care 34,551 38,089 Cottage Grove Community Hospital/ South Lane Medical Group 41,491 53,173 TOTAL 439, ,051 Employment Data Number of PeaceHealth Oregon Region employees 5,054 Number of PeaceHealth System employees based in Lane County 265 Number of registered nurses 1,618 Number of new hires in past year 668 Average annual turnover rate 10.5% (industry average: 14.6%) Average annual salary (excluding executive and physicians) $58,898 PEACEHEALTH OREGON REGION PAGE 3
4 Revenue & Expenses JULY 1, 2010 JUNE 30, 2011 REVENUE: For the first time in PeaceHealth s history, government programs Medicare and Medicaid were our primary source of revenue. PeaceHealth attributes this slow but significant shift in payers primarily to the poor economy. For many people, health insurance was a casualty of lost jobs and diminished income during the recession. Our data show that the number of people without any insurance has gone up more than 30 percent in the past five years. The growth in the share of patients on Medicare and Medicaid is concerning because these programs pay less than the cost of providing care. EXPENSES: Every PeaceHealth employee is a caregiver who is critical to our healing mission; compensating them for their outstanding work is our single biggest expense. Salaries, wages and benefits account for 50 percent of our expenses, followed by supplies and related expenses at 35 percent. With 5,054 caregivers, PeaceHealth is the region s largest employer. PeaceHealth paid $1,336,448 in taxes on property that is not exempt. Examples of property that is taxable because it isn t in service to our nonprofit health care mission include property leased to commercial entities and paid-parking structures. Total Net Operating Revenue 30% Commercial Insurance 8% All Other Payers 3% Other Operating Revenue 14% Medicaid 45% Medicare Total Operating Expenses 39% Salaries & Wages 1% Professional Fees 4% Provisions for Bad Debt 11% Payroll Taxes & Benefits 10% Depreciation / Interest 35% Supplies & Other Expenses Value for Your Dollar at RiverBend and University District consistently perform better than comparable hospitals when it comes to providing value for the health care dollar, as illustrated in the Charge per Discharge graph. Our average charge is about 8 percent lower when compared to similar hospitals in the state in terms of size or services provided, or compared to other community hospitals in our region. Data Source: OR Hospital Discharge Database 2012 $20,000 $17,500 $15,000 $12,500 $10,000 $7,500 $5,000 $2,500 $0 $15,216 Charge Per Discharge $16,712 $18,218 $19,736 $19,653 Oregon hospitals outside SHMC s service area with similar tertiary services and/or discharge volumes All community hospitals in SHMC s five-county area SHMC SHMC SHMC Benchmark Benchmark Group #1 Group # PEACEHEALTH OREGON REGION PAGE 4
5 JULY 1, 2010 JUNE 30, 2011 PeaceHealth provides care to all in need, regardless of ability to pay. When PeaceHealth is not paid for services rendered, the losses are recorded as uncompensated care. This includes shortfalls in payments under government programs (Medicare and Medicaid), charity care for those who cannot pay and bad debt for those who could pay but do not. In fiscal year 2011, PeaceHealth provided $94 million in uncompensated care, exceeding last year s record of $92 million. Of the $94 million, $64.2 million* in care was provided through our innovative Bridge Assistance program. Serving the poor and uninsured is PeaceHealth s primary gift to the community, but PeaceHealth gives back in other ways as well (detailed in the chart labeled Community Benefit by Type ). *Based on charges. $100M $80M $60M $40M $20M $0 Charity Care Bad Debt TOTAL $200M $150M $100M $50M $0 Uncompensated Care $31.5M $38.8M $44.4M $47.4M $52.5M $64.2M $17.2M $16.8M $22M $28.5M $39.5M $29.9M $48.7M $55.7M $66.4M $75.9M $92M $94.1M & Capital Spending Capital Spending $85,780,000 $77,193,704 Capital Spending $5,800,000 $73,705,740 Capital Spending $18,500,000 $60,530, $162,973,704 $79,505,740 $79,030,656 By Type Charity care at cost $30,389,851 50% Unreimbursed costs of public programs at cost $16,033,863 26% Community health programs and services $753,039 1% Subsidized health services $11,559,324 19% Cash and in-kind contributions to community groups $660,120 1% Health professional education $1,134,460 2% TOTAL COMMUNITY BENEFITS $73,705,740 PEACEHEALTH OREGON REGION PAGE 5
6 Monthly Milestones FISCAL YEAR 2011 JULY 2010 Physicians at Peace Harbor Hospital in Florence are linked via a live interactive audio/visual connection to neurologists at the Advanced Primary Stroke Center at Sacred Heart at RiverBend to give rural patients access to medical experts in real time. AUGUST 2010 Low-cost sports physicals are offered at Cottage Grove High School and Creswell Clinic. Proceeds from the $20 examination are donated to local high schools to help replace sports equipment and cover fees for students who would otherwise not be able to participate in sports programs. SEPTEMBER 2010 at RiverBend is recognized in Modern Healthcare s 25th Annual Design Awards for its healing environment and the overall hospitality-inspired design. A record number of PeaceHealth employees participate in the United Way s Day of Caring on September 20. OCTOBER 2010 Cottage Grove Community Hospital unveils its new chapel, which received a major face-lift thanks to donations to the hospital s foundation. NOVEMBER 2010 PeaceHealth announces the integration of the Oregon Cardiology providers with to further strengthen the quality of service available at the Oregon Heart & Vascular Institute. DECEMBER 2010 Local businesses host toy drives during the holiday season to collect items to brighten the days of pediatric patients at. JANUARY 2011 PeaceHealth Medical Group Urgent Care opens a second location at 3321 W. 11th Ave., near Fred Meyer. The clinic is open from 10 a.m. to 8 p.m. seven days a week. FEBRUARY 2011 Oregon Heart & Vascular Institute hosts its 10th annual Heart Fair to educate the public on risk factors for heart disease and showcase the latest technology. MARCH 2011 s Sleep Disorders Center presents its 10th annual Sleep Fair to help serve community members who have difficulty getting a good night s rest. APRIL 2011 receives the Organ Donation Silver Medal of Honor for the hospital s efforts to promote organ donation. Also in April, the Lakeside Clinic in Dexter, Ore., becomes part of the Cottage Grove Community Hospital and Clinics network of care, opening up the practice to serve more of the rural population in and around the Dexter area. MAY 2011 PeaceHealth Medical Group celebrates the first anniversary of its new Nurse Midwifery Birth Center at 353 Deadmond Ferry Road in Springfield. The previous facility in Eugene had served women and families for more than 20 years. JUNE 2011 The Oregon Bariatric Center at Sacred Heart celebrates its fifth anniversary. More than 600 people completed surgical weight loss programs since the center opened in May To better serve patients in Douglas County, Sacred Heart opens a satellite bariatric clinic on Mercy Medical Center s campus in Roseburg. PEACEHEALTH OREGON REGION PAGE 6
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