Hospital highlights - Too Many Hospitals on the Palouse?

On a few occasions I have been asked questions like, “Are there too many hospitals on the Palouse?” or “Should Whitman Hospital combine with the Pullman and Moscow hospitals?” People who ask theses questions are usually wondering if we could save money by combining hospitals.

These are good questions, and they are tough to answer. The best answer I can give is, “Yes, you could probably save some money, but not as much as you think. Plus there are some very big reasons to not do this.”

First, a new hospital would have to be built. None of the current hospitals could absorb the load from the others. Then, the only real savings would come from sharing fixed costs. Practically speaking that means some of the routine facility and equipment expenses. Variable costs that go up and down with patient load, such as labor and supplies, do not matter much if they are consolidated into one facility. This is because there will still be the same number of patients and they will still require the same number of nurses, therapists, pharmaceuticals, etc.

Having one hospital would also significantly decrease revenue. All three hospitals are designated as Critical Access Hospitals which limits them to no more than 25 beds and provides better Medicare and Medicaid reimbursement than many larger hospitals. If the hospitals were to combine, 25 beds would not be enough. That new hospital would have to be much larger. Expansion would eliminate the CAH designation and create significant financial problems.

Another reason to not combine is that all three hospitals are economic engines for their individual communities. They provide some of the highest paying and most stable jobs in the region. They also provide a visible inspiration to youth deciding what their future might be. Losing one of these larger employers would be devastating to their community.

These three hospitals are made up of persons who live in their communities and provide personalized care to their friends, family and neighbors.

The importance of that close connection cannot be overstated.

Our community has wanted this connection so much that it created and sustained this hospital in some tough times over the years.

It was a community member who convinced the sisters to start St Ignatius in 1893.

It was the community who rallied to build a new hospital and transform it into a private, not-for-profit hospital in the 1960s.

It was the community that voted to create a Hospital District and tax itself to keep the hospital open in the 1980s.

And it was the community that voted to pass a bond issue to build the new hospital a few years ago.

The bottom line is there are not too many hospitals on the Palouse. It makes financial sense to keep them separate and the community wants it that way.

David E. Womack, CEO

Whitman Hospital & Medical Center