Good Samaritan Presents Budget for 2016

Good Samaritan’s 2016 Operating Budget was approved at Tuesday night’s Board of Governor’s meeting. The budget highlights the organization’s continued focus on the care and safety of its patients and improving the health and wellness of the communities the hospital proudly serves. There is a 3% operating margin based on increased volumes and reduced costs. The budget reflects Good Samaritan’s commitment to offering higher quality health care combined with cost-effective and state-of-the-art care.

As a testament to the hospital’s mission to provide quality health care to everyone, regardless of ability to pay, the budget anticipates nearly $13 million in charity medical care during the year, which is projected to be a 3.3% increase from 2015. Thomas Cook, Chief Financial Officer stated, “even with HIP 2.0 Medicaid Expansion in place, which is expected to allow 350,000 additional Hoosiers (9,000 Good Samaritan patients) to receive health insurance they did not previously have, the reality is that there is still a great number of people who are living without health care coverage.” The focus of Good Samaritan is on assuring everyone in our community has access to the highest quality health care. The Primary Care Clinic, a health office that provides care to uninsured patients, saw more than 4,000 patients in 2015 and will grow in the next year. Community Health Services (CHS) are also out in the community providing health screenings in Knox and surrounding counties. In 2015, CHS provided 27,310 screenings to 23,890 people that may have otherwise not received any health care.

“Every year the budget process for Good Samaritan and health care in general becomes more difficult. With continuous cuts in Medicare and Medicaid reimbursement and inflationary pressures on the expense side, maintaining a positive operating margin while recognizing the financial impact to our patients is a challenge,” stated Rob McLin, President and CEO. “However, because of the dedicated and passionate people taking care of our patients and our facility on a daily basis, we remain optimistic and encouraged about our future.”

Optimism reigns with new specialty relationships in inpatient care with vascular/thoracic surgery and pain management beginning in January. A new orthopedic surgeon will also arrive at Good Samaritan in August of 2016.

“The hospital’s budget for 2016 is based on positive outpatient growth as particularly seen in the outpatient area in 2015 and is anticipated to continue through the coming year,” added Cook. “We have welcomed 13 new physicians this year and look forward to even more additions to the medical staff throughout 2016. These new physicians allow the hospital to remain optimistic in our vision of growth in the hospital’s future. Because of these additions in 2015, Good Samaritan projects a 3.28% increase in volumes in 2016.

The budget will reflect the growth of the Samaritan Center by 12.6%, outpatient visits by 4% and physician services volumes by 8.49%. Some of the growth centers on a full year in the new Gibault Memorial Tower. “We could not be more excited to be in our new world class facility for our patients,” added McLin. “As we start to wind down the BEACON Project, we will be consolidating our Rehab Unit to a new location within the hospital in May and will open our new Orthopedics Center of Excellence in July of 2016. This will also contribute to outpatient growth.”

Good Samaritan continues to remain price and cost competitive. The hospital announced an average rate increase for services at 3.8%. Compared to Voluntary Hospitals of America (VHA), the typical rate increases being seen across the midwest range from 5-9%. Additionally, Cook noted that through September 2015, Good Samaritan was 12.2% lower in cost than peer hospitals and 15.3% lower than statewide hospitals of similar size based on Indiana Hospital Association comparative data. “We recognize the significant costs of individuals and employers with today’s health care system,” said Cook. “We care about our patients and the communities we serve, and we are sincerely trying to keep our health care costs lower and more affordable to those who put their trust in us.”

Dean Wagoner, Vice President of Human Resources, presented an increase of 2% in employee wages. The result is an additional $1.2 million added to the wage and salary expense. “We are pleased to provide this pay raise in recognition of the outstanding care our 1,900 employees provide every day. Good Samaritan employees continue to improve productivity and cost containment daily and deserve to be rewarded for their hard work,” stated Wagoner.

Health care is continuously changing and Good Samaritan works diligently to ensure the hospital is on the forefront of this change. “I am confident our staff will continue to keep Good Samaritan moving toward its vision of being the regional center of excellence in health and wellness,” stated McLin. Because of our world class staff and medical team, we remain the best choice for health care in our region.”

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