Hospital a Big Player Economically

by Matt Pedigo, Citizen Times, originally published on 9/22/2011

A recently-released report by the Louisville-based Kentucky Hospital Association (KHA) shows The Medical Center at Scottsville, in addition to being a key medical services provider in the county, is also a shot in the arm for the local economy.

The KHA's Kentucky Hospitals' Economic Importance to Their Communities report studied economic impact of local hospitals on their communities for 2009, the most recent year for which the data has been compiled. The study also noted the nonprofit hospital's major impact in another area vital to people: The care it provided for patients who were unable to pay for it.

Treating uninsured patients whose annual income was below the federal poverty level resulted in an unreimbursed cost of $926,000 to the hospital in 2009. These patients were never billed, according to the report. This doesn't include bad debt, or full costs, beyond government-set reimbursement levels, of caring for Medicare and Medicaid patients. Under state law, all patients seeking treatment at hospitals must be treated, regardless of ability to pay.

The KHA reports that for 2009, The Medical Center at Scottsville paid its then 207-person workforce almost $8.1 million in compensation. This, added with purchases of local materials and services, meant the 25-bed hospital spent $12.7 million for the year. This, the report states, had a substantial ripple effect on the local economy.

"We have close to 300 employees now," said Medical Center at Scottsville Administrator Eric Hagan. "Of those, 65 percent are from Allen County. They pay local taxes; they live here, and go grocery shopping here. And all the services we can get locally, they try to."

Hagan noted that many materials for the hospital's new addition, to be detailed next week, had come from local businesses like Johnson Lumber Company and The Decorating Centre.

For 2009, the KHA report puts the hospital's service level at 722 patients were treated on an inpatient basis, from a total of 5,586 in-hospital days. A total of 8,944 patients sought emergency room care. Outpatient visits totaled 20,493.

In accomplishing this, from fuel to food, the KHA estimates that The Medical Center's employees spent $3.6 million to buy local goods and services for the year. The hospital was responsible for $4.6 million in purchases of local goods and services, the report states.

The hospital paid the City of Scottsville $121,229 in occupational taxes, and $80,820 to the County of Allen. The KHA report links The Medical Center at Scottsville employee compensation and sales taxes to $678,885 in state income and sales tax collected. The hospital paid $419,722 in state provider taxes.

The report argues against cuts in Medicare and Medicaid, noting that a 10 percent cut would reduce the hospital's employee compensation by a combined $808,000. This, KHA projects, would result in lost jobs or decreased compensation. In either case, the report states, the ripple effect could go the other direction, reducing state and local government revenue through withholding and occupational taxes by $159,237. The study projects a loss of $3.5 million in local and regional sales for goods and services, and $1.1 million annually in related worker compensation around the region.

Statewide, in terms of numbers of jobs, hospitals rank fifth among all employers, but were fourth highest among wages and salaries paid. Average pay for hospital employees is 12 percent higher than that of private-sector employees.

Copyright 2011 Citizen Times (Scottsville, KY)

Scottsville extols expansion

by Justin Story, The Daily News, originally published on 9/22/2011

Community leaders formally dedicated the completion of an expansion project at The Medical Center in Scottsville that includes additional clinic space and a permanent MRI system.

The $2.3 million project was nine months in the making, and hospital officials touted the potential benefits for patients and physicians during Wednesday’s ceremony.

The 5,700-square-foot expansion includes new space for the hospital’s Physician Specialty Clinics, where specialists from Bowling Green will see patients on designated days and times each week.

Scott, Murphy and Daniel constructed the expansion project and Ken Lashley served as the architect.

Eric Hagan, vice president of The Medical Center, said that relocating Physician Specialty Clinics from the Scottsville Medical Plaza to the hospital will be more convenient for patients who will not have to do as much traveling to receive specialized care from cardiologists, orthopedists, neurologists and other doctors.

“I think our patients will not have to get up and get around as much and then sit around and wait as much,” Hagan said.

Specialists who will work in the new part of the hospital will benefit from having building space dedicated exclusively to them as well, Hagan said.

Previously, Physician Specialty Clinics shared a facility with the Scottsville Rural Health Clinic.

Hagan said the rural clinic, which is staffed by three physicians and two nurse practitioners and sees an average of 120 patients daily, will have additional work space and patients there may potentially see reduced wait times.

“As the community grows, we continue to try to meet the community’s needs here,” Hagan said.

In addition to the new clinic space, the hospital welcomed the arrival of a new MRI system, the first permanent MRI machine at the hospital.

The new MRI suite will replace a mobile MRI service that visited the hospital once a week.

The permanent MRI was purchased by the hospital from Toshiba America Medical Systems.

Marty Robinson with Toshiba said the hospital’s MRI system represents the latest in imaging technology, noting that the patient table supports 440 pounds and the imaging system’s engine is quieter than other MRI machines.

As with the new clinic space, patient convenience was highlighted as a benefit of the hospital’s new permanent MRI suite.

Pamela Williams, a registered respiratory therapist at the Scottsville hospital, said her mother was one of the first patients to undergo an MRI in the new addition.

A Scottsville resident, Williams’ mother would have previously had to travel out of town or wait for the mobile MRI service to come to Scottsville for her examination.

“It is a huge convenience for our family members and patients to have this here,” Williams said. “A lot of folks have to take a taxi or get a day’s transportation just to go to Bowling Green for this.”

Chris Robison, chair of the Scottsville-Allen County Chamber of Commerce, said the community stands to benefit economically from the hospital’s expansion.

The Medical Center employs more than 200 people in Allen County, and accounts for $8.1 million a year in wages, which represents 6 percent of wages in the county.

Of that total, $3.5 million is spent in the county and about $200,000 is paid to local government coffers in occupational taxes.

“That makes a world of difference to members of the chamber and the overall quality of life here,” Robison said.

Copyright 2011 News Publishing LLC (Bowling Green, KY)