Texas County Memorial Hospital is bracing for a $1.4 million hit to the hospital’s bottom line, board members heard at last week’s monthly meeting.
“Medicaid was not expanded by our state government this session, so TCMH will not receive any type of payment to offset the high number of Medicare and Medicaid patients we provide for,” said Wes Murray, TCMH chief executive officer.
Murray explained that in the past TCMH has received additional federal dollars due to the number of Medicaid patients seen at the hospital through a “disproportionate share” program known as DSH. Those additional funds are going away under the Affordable Care Act.
According to Murray, $1.2 million of DSH funds were taken from TCMH for 2012.
The lack of DSH funds from the Affordable Care Act is projected to account for an additional $1.1 million hit to the hospital’s bottom line in 2013.
Medicaid expansion in Missouri was supposed to ease the blow of losing the DSH funds, but state legislators did not pass Medicaid expansion legislation during the spring session.
“The sequestration of the federal government has also resulted in a 2 percent reduction in Medicare payments,” Murray said.
The 2 percent reduction totals approximately $300,000 annually.
“We are beginning to experience a monthly loss of approximately $116,600 from these cuts,” Murray explained.
Murray explained, “a plan is in place,” to a try to make up for some of the losses.
“We have to manage carefully with this expansion,” Murray said. He explained that all cost saving measures are being considered and implemented when possible.
Earlier this year, the TCMH Fitness Center was handed over to the Houston Optimist Club to cut expenses. Other cuts in services are also being considered.
In her financial report, Linda Pamperien, TCMH chief financial officer, reported a loss of $72,395 for May. There is a negative year-to-date balance of $380,014.
“Inpatient volumes were down slightly for the month of May, but almost all outpatient services were down for the month,” Pamperien explained.
TCMH, like healthcare facilities across the region, has experienced a downturn in outpatient service utilization.
“Our inpatient numbers show that TCMH is holding steady in inpatient market share in Texas and Wright counties,” Murray said. “But our overall outpatient market share is dropping continuously.”
Murray explained that recent healthcare news shows an uptick in the overall economy, but that healthcare is not following suit.
TCMH is trending inpatient and outpatient volumes, with special attention to the effect on volumes with the new, private patient rooms and new diagnostic equipment in place.
“We have to be more aggressive about asking our patients to get their procedures and diagnostic services done at a local level,” Murray said.
Murray said out-of-town specialists that treat TCMH patients will refer the patients back to their local primary care doctor, but the specialist may order lab or imaging services at his or her clinic, local hospital or surgery center.
“Area patients need to remember that they don’t have to drive back to Springfield or Rolla or West Plains for blood work or for an MRI,” Murray said. “They need to tell their healthcare provider that they want to get their testing done at home.”
With the hospital’s new construction, a complete radiology suite was added with two new X-ray units, new ultrasound, nuclear medicine, 64-slice CT and digital mammography machines were added.
“Truly, the latest in technology is available here, so there’s no need for a local patient to go elsewhere for diagnostic services,” Murray said.
Outpatient service departments are making a concerted effort to reach out to area healthcare providers to educate them about the services available at TCMH, too.