Hospital Highlights

Hospital faces challenge

Thank you for the warm welcome I have received to the community. There is a lot to be proud of – especially in our hospital. We consistently score above the 90th percentile in patient satisfaction and have achieved high ratings on quality scores as well. We pride ourselves on the warm, caring environment we have created.

Our challenge as we greet the new year is one critical access hospitals all over Washington are facing. The legislature has a difficult job right now, and they are looking for ways to reduce expenses by $1.5 billion.

Currently, in Washington and many other states, critical access hospitals are reimbursed for services to Medicaid patients based on actual expenses. The cost of providing services in a small hospital is higher given the minimum staffing to assure safety and fewer patients across which to spread these fixed costs. The payment model allows us to cover the cost of being small and keeping services in our community. There is a potential that the legislature may take action to eliminate cost-based reimbursement and move to a fixed-payment model. A fixed-payment model penalizes low volume providers in small communities.

Thanks to the work of legislators Schmick, Fagan, Schoesler, we believe that the reductions will not be as severe as those proposed in HB2130. Please thank them for their continuing hard work on behalf of critical access hospitals and the small communities they serve. In addition, we are actively engaged in developing alternative strategies, along with other critical access hospitals, through the Washington State Hospital Association and the Association for Washington Public Hospital Districts.

Regardless of the final outcome of the legislature, we know that we must reduce the overall cost of healthcare. It is one segment of the basis for healthcare reform, the Triple Aim (from the Institute for Healthcare Improvement), which includes :

Improve the health of the population;

Enhance the patient experience of care (including quality, access, and reliability); and

Reduce, or at least control, the per capita cost of care.

While we currently are on a stable financial base, we know 2012 will require some belt tightening as reimbursement is impacted by both the Federal and State governments. Since we know this problem will not go away, we are beginning to evaluate our expenses and will be doing our part in reducing the cost of care where it makes sense for our community and our patients.

I would welcome your thoughts and suggestions. You can reach me at 509-397-3435 x365 or glassdk@whmc.org.

Debbie Glass,

CEO

Whitman Hospital and Medical Center