Arkansas Hospitals: A Few Quick Facts

Arkansas hospitals are a major source of pride for many communities in our state. Like their schools and churches, the hospitals make those cities and towns better places to live. Those hospitals offer the added benefit of giving people peace of mind, just knowing there is a place to get healthcare when and if it's needed and that their hospital could be the difference between life and death in some cases.

For most Arkansans, it is enough to know that their local hospital is there when they, their families or friends need the best healthcare available. They probably don't think much about what the hospital means to the community in other ways or the wide range of hospital services that are provided locally and across the state every day. They may not know how hard the people in all the state's hospitals continually work to improve their services and the pride they take in assuring the quality of care they give is the best it can be. Below are some facts about Arkansas hospitals that you may not know:

• Arkansas hospitals employ almost 47,000 people, ranking them among the state's largest employers. In many communities, the local hospital IS the largest employer. At least nine hospitals located in eight counties throughout Arkansas employ more than 1,000 people.
• Arkansas hospitals contributed about $2.8 billion to the state's economy last year. Hospital payrolls surpassed $1.3 billion, and they spent another $1.5 billion purchasing equipment, goods and services from businesses in their local communities and across the state.
• Arkansas hospitals provided more than 2.1 million days of care to patients who were hospitalized last year and registered about 4.2 million visits to their outpatient departments and emergency rooms by patients needing care for a wide variety of illnesses and injuries.
• Arkansas hospitals continue to make more services available in outpatient settings. Over the past ten years, patient visits to hospital emergency rooms and outpatient departments climbed 82%. Thirty-six percent of all hospital charges in 1998 were for outpatient services.
• Arkansas hospitals give back to their communities, providing community benefit programs under a Òhospital without wallsÓ concept. Arkansas hospitals' community outreach programs extend services into local businesses, schools, churches and community centers. They are partnering with local businesses to improve worker health and reduce missed work days related to illness and injury. Programs are presented in local schools to teach kids about healthy lifestyles. And clinics are being set up in areas away from the hospital to take everything from healthcare services to healthy meals to individuals who wouldn't otherwise get them.
• The hospital part of patient bills for a hospital stay in Arkansas averaged $10,017 last year. That was 22% less than the average charge nationwide and 19% less than the average bill for hospitalized patients in the West South Central region of the U.S. Arkansas charges also average 15.5% less than similar charges in its six surrounding states.
• Medicare and Medicaid account for 63% of all patient admissions to Arkansas hospitals and more than 70% of inpatient days of care provided.
• More than 45% of the average hospital bill in Arkansas reflects the cost of care provided patients who can't afford to pay the entire amount out-of-pocket and who have no insurance or other source of payment. These include patients who receive benefits from Medicare, Medicaid and other government programs, which don't reimburse the full cost of services; patients enrolled with health maintenance organizations and other managed care organizations which pay discounted rates for services they cover and the growing number of uninsured and underinsured patients who receive hospital care, who, at best, may be able to pay only a portion of their bills.
• An increasing number of Arkansas hospitals are facing serious financial pressures related to increasing costs and falling revenues. The Balanced Budget Act of 1997 will remove up to $1.25 billion in Medicare payments alone to hospitals in the state between 1998 and 2002. Last year, operating costs were more than all sources of revenue in almost a third of the state's hospitals. Another 17% of hospitals had operating margins less than 1%. Operating margins for 64% of the hospitals fell between 1998 and 1999 and net income fell in 72% of the facilities.

"Arkansas Hospitals: Enhancing Quality and Trust"
AHA Annual Meeting and Trade Show, October 9-12, 2000

The Arkansas Hospital Association will host its 70th annual meeting and the first of the new millennium with several changes-a new Monday through Thursday schedule, a new golf tournament, and a new location. The meeting will be held October 9-12 at the new Hot Springs Convention Center and the Austin Hotel in Hot Springs.

The new Monday through Thursday schedule will feature learning sessions with prominent speakers, dedicated time to visit exhibits, many networking opportunities, a dinner honoring past AHA chairmen featuring lively entertainment and dancing by Vince Vance and the Valiants, and the return of the annual golf tournament-all in historic downtown Hot Springs.

Speakers scheduled to appear include keynoter Lance Secretan of Ontario, Canada, who will motivate and inspire healthcare leaders; Witt/Kieffer consultant Carson Dye; science and technology consultant Bill Dwyer; customer service expert Quint Studer; and Boston Globe journalist, Larry Tye.

Sessions include discussions of bioterrorism, science and gene therapy research, customer excellence, medical safety, post acute care, refocusing senior team management, and a 2000 election preview.

Much, much more awaits annual meeting participants. Mark your calendar now for October 9-12, and watch the mail for updates and registration information!

Sponsorships and Exhibit Space Going Fast!

Nominations Open for 2000 AHA Awards

Nominations are open for the 2000 Arkansas Hospital Association awards program. The A. Allen Weintraub Memorial Award, Distinguished Service Award, and Statesmanship Awards will be presented during the Association's 70th Annual Meeting in October. Arkansas' Young Executive of the Year will be presented by the Arkansas Healthcare Executives Forum. The Diamond Awards, cosponsored by the Arkansas Society for Healthcare Marketing and Public Relations, will be presented at the same time.

The A. Allen Weintraub Memorial Award, named for the beloved Allen Weintraub, long-time administrator of St. Vincent Infirmary Medical Center in Little Rock, is the highest honor bestowed upon an individual by the AHA. Those nominated for this honor should be hospital administrators who are contributing to their hospitals and communities in much the same manner, as did Allen.

The AHA's Distinguished Service Award is presented to individuals who, while not necessarily AHA members, have promoted a cause of the healthcare industry, thereby becoming entitled to special recognition. Examples of those eligible for this award are physicians, nurses, trustees, auxilians, and other deserving individuals.

The Statesmanship Award is presented to a legislator or congressman who has worked diligently on healthcare issues and is, therefore, entitled to special recognition.

The 2000 recipients of the Weintraub, Distinguished Service, and Statesmanship Awards will be chosen by the AHA Board of Directors from those nominated. Nominations, accompanied by documentation of the nominees' accomplishments, must arrive at AHA headquarters no later than August 4, 2000. A list of previous award recipients and award requirements is available by calling the AHA.

The 2000 Diamond Awards will honor outstanding achievement in healthcare public relations and marketing, and will be presented in several categories, such as publications (internal and external), billboards, and radio, print, and television advertising. Two awards (for hospitals of 175 beds or less, and those of more than 175 beds) will be presented in each category at the ASHMPR annual luncheon held in conjunction with the AHA's Annual Meeting in October. Award recipients will be chosen from entries received no later than Friday, August 4. Detailed entrance information and forms are available from the AHA.

Arkansas Hospitals: Community Hospital Financial and Utilization Indicators, 1993-98 - Click Here for Chart

Meeting Highlights HIPAA Issues

In March, the Arkansas Hospital Association (AHA) held a compliance forum that focused on the Health Insurance Portability and Accountability Act of 1996 (HIPAA).

During the meeting, it became evident that conflicts might arise at times when hospitals must comply with existing state regulations and HIPAA's new, very strict privacy regulations. The HIPAA rule bars release of patient identifiable information which has been, is, or will be stored, maintained, or transmitted by electronic media.

On April 11, the AHA held a meeting to discuss those concerns. In addition to the AHA's legal counsel and members of the association's executive team, others who attended included representatives of the Medicare Fiscal Intermediary, Arkansas Department of Health, the Department of Human Services' Office of Long Term Care, Arkansas State Medical Board, Pulaski County Coroner, Arkansas State Board of Dental Examiners, and Arkansas Board of Pharmacy. Invitations also were issued to other agencies, including the Attorney General's Office and the U.S. Attorneys Office in Little Rock.

HIPAA mandates regulations that govern privacy, security, and administrative "simplification" standards for healthcare information. Several proposed and final regulations are expected this year. They will require major changes in the way healthcare organizations handle all facets of information management, including claims, coding, security, and patient records. The act restricts not only information released by healthcare providers, but the way it is handled and used by groups receiving the information.

Those attending the meeting generally agreed there are several exclusions found in HIPAA's proposed privacy regulations that may cover some potential problems. Those include how the act might affect the Arkansas Department of Health's hospital data program, a prosecutor's subpoena for records, a coroner's request for information, state licensure surveys, or law enforcement requests for information.

There was also considerable discussion about the cost, security, and mandatory forms provisions of HIPAA. The group agreed to review the Act, make comments, and to compare it to state regulations to determine areas where the two differ.