Summer, 99

Calendar

  • August 12-13, Hot Springs
    Healthcare Financial Management Association
  • August 18-19, Little Rock
    JCAHO The Advanced Course: Home Care Survey Preparation Clinic
  • August 26-27, Hot Springs
    Arkansas Rural Health Forum n September 10-12, Nashville, Tenn. Joint Leadership Conference
  • September 24, Little Rock
    Arkansas Association for Healthcare Engineering
  • September 29, Little Rock
    JCAHO Assessment and Treatment Planning for Behavioral Health
  • October 3-6, Little Rock
    AHA 69th Annual Meeting and Trade Show
  • October 14-15, Jacksonville
    Arkansas Healthcare Human Resources Association
  • October 28-29, Little Rock
    JCAHO Advanced Course for Improving Organizational Performance

 

 

Arkansas Hospitals Partner In Campaign for Coverage

In January 1997, the American Hospital Association embarked on an ambitious two-year program to partner with hospital associations and local community hospitals across the country to improve insurance coverage and access to healthcare services for millions of people in the United States. By January 1999, more than 1,500 hospitals and health systems, and 53 state, regional and metropolitan hospital associations were participating in this monumental effort. Together, through local initiative programs carried out in conjunction with government agencies, businesses, schools, civic organizations and other healthcare providers these partners found ways to extend coverage to more than 2.5 million uninsured people and improve access to healthcare for another 3.4 million Americans.

In Arkansas, seven health systems and hospitals, and the Arkansas Hospital Association signed-on as official partners in this Campaign for Coverage. They include Arkansas Children's Hospital, Baptist Health, North Logan Mercy Hospital, Ouachita County Medical Center, St. Bernard's Regional Medical Center, St. Joseph's Regional Health Care Center and St. Vincent Health System. Among their efforts, these hospitals and systems worked closely with state officials to publicize the Arkansas ARKids First children's health insurance program and to identify and obtain eligibility for children who qualify for the program. They operated free clinics and wellness centers for low-income populations in their areas, worked with community groups to coordinate care for the uninsured working poor, and conducted free health screening programs to identify potential health problems for persons otherwise unable to get those services. The Arkansas Hospital Association has been an active participant in the Arkansas Health Care Access Foundation, a program that links poor Arkansans needing healthcare services with volunteer providers who treat the patients for free. Almost all the state's hospitals have provided free services to medically indigent people in Arkansas under this program, which was implemented in 1989 by the Arkansas Medical Society and includes a network of more than 1,700 physicians, hospitals, pharmacies, dentists, home health agencies, podiatrists and county health units.

Infant Abductions in Healthcare Facilities

The National Center for Missing and Exploited Children in Arlington, VA, reports that there have been 104 infant abduction cases in healthcare facilities from 1983 to 1998. Ninety-eight of the infants were located, while six are still missing. In the 13 cases reported from 1996 to 1998, one of the infants is still missing. Between 1991 and 1998, there was a 55% reduction in infant abductions from healthcare facilities.

In the past three years, the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) has reviewed eight cases related to infant abductions. All three took place in hospitals with more than 400 beds. Five of the events occurred in the mother's room, while two were in the newborn nursery and one was in the neonatal intensive care unit. Seven of the infants were recovered unharmed, most within a few hours, and there was no evidence of violence to the mother or child. One of the infants is still missing.

A root cause analysis was completed for the eight cases, with all hospitals identifying unmonitored elevator or stairwell access to the postpartum and nursery areas as a root cause. Root causes fell into the following six general areas:

  • Security equipment factors such as security equipment not being available, operational or used as intended.

  • Physical environmental factors such as no line of sight to entry points as well as unmonitored elevator or stairwell access.

  • Inadequate patient education.

  • Staff-related factors such as insufficient orientation/training, competency/credentialing issues and insufficient staffing levels.

  • Information-related factors such as birth information published in local newspapers, delay in notifying security when an abduction was suspected, improper communication of relevant information among caregivers, and improper communication between hospital units.

  • Organization cultural factors such as reluctance to confront unidentified visitors/providers.

Arkansas Hospital Charges Among Lowest

Average charges for patients who are admitted to hospitals in Arkansas for diagnostic, treatment, and surgical services continue to be less than the average charges for services in hospitals in the region or throughout the country. According to information published in the 1999 edition of the American Hospital Association's Hospital Statistics publication, the average bill for a period of hospitalization in Arkansas was $9,504 in 1997, the most recent year for which information is available. That compares with a nationwide average charge of $12,054, and $11,808 for hospitals in the West South Central region of the country, which includes Arkansas, Louisiana, New Mexico, Oklahoma, and Texas. Between 1996 and 1997 the average charge per hospital stay in Arkansas climbed 3.85%, a bit more than the overall U.S. increase of 3.4%.

The $9,504 average charge ranked Arkansas 41st among the 50 states and the District of Columbia in terms of charge per stay. Washington, DC posted the highest charges ($18,815), followed by Hawaii ($15,933), Nevada ($15,684), California ($14,817), and Alaska ($14,663). The least expensive states for hospital services were Mississippi ($8,593), Iowa ($8,224), Idaho ($8,198), Wyoming ($8,138), and Maryland ($8,123).

Although the state's hospitals billed an average $9,504 per stay, they collected only $5,142 of that amount, about 54% of their billed charges. In other words, 46% of the charges were written off as discounts, bad debts, or left unpaid for other reasons. That's close to the U.S. average of 46.75%. The uncollected amounts relate to payment policies of government programs like Medicare and Medicaid, non-covered charges insurance companies don't pay, managed care discounts, and bad debts for services provided to uninsured patients and others who can't afford to pay for all or some of the services they receive. Overall write-offs in Arkansas hospitals have grown steadily since 1991 when they equaled about 37.5% of billed charges. The rate is expected to increase even faster for 1998 through 2000 due to Medicare revenue-limiting provisions of the Balanced Budget Act of 1997.

 

Arkansas Hospitals
Community Hospital Financial And Utilization Indicators 1992-97

Arkansas Hospitals 1992 1993 1994 1995 1996 1997 % of Change 1992-97
Beds Available 11,047 11,039 10,243 10,144 10,260 10,111 -8.4%
Admissions 344,768 342,060 339,755 341,680 343,799 346,426 0.48%
PATIENT DAYS 2,407,337 2,335,646 2,149,785 2,185,843 2,124,289 2,126,384 -11.6%
Non-
Emergency OP Visits
1,781,516 1,904,654 2,176,216 2,562,115 3,066,745 3,180,179 78.5%
OUTPATIENT VISITS 2,796,212 2,991,121 3,181,895 3,623,332 4,090,671 4,176,670 49.3%
NON-
Emergency AS A % OF TOTAL OP VISITS
63.7% 63.7% 68.4% 70.7% 75.0% 16.1% 19.5%
ADJUSTED PATIENT
DAYS
3,282,123 3,286,876 3,102,733 3,273,158 3,228,919 3,239,238 -1.32%
Occupancy RATE 59.5% 58.0% 57.5% 59.0% 56.7% 57.6% -3.20%
INPATIENT Surgeries 117,279 115,474 110,449 104,209 100,498 111,399 -5.0%
Outpatient Surgeries 117,587 120,430 130,924 135,799 144,085 143,322 21.89%
TOTAL Surgeries 234,866 235,904 241,373 240,008 244,583 254,721 8.45%
Outpatient as % of Total Surgeries 50.07% 51.05% 54.24% 56.58% 58.91% 56.27% 12.39%
TOTAL FTE Employees 36,583 37,061 35,915 37,550 38,406 41,129 12.43%
FTEs PER ADJUSTED OCCUPIED
BED
4.07 4.12 4.22 4.19 4.34 4.63 13.91%
GROSS REVENUE, INPATIENT
($)
2,551,582,773 2,722,861,890 2,780,850,665 2,931,380,789 3,135,474,445 3,292,550,631 29.04%
GROSS REVENUE, Outpatient
($)
862,633,587 1,018,020,045 1,136,369,830 1,333,350,521 1,537,088,806 1,732,174,525 99.76%
GROSS PATIENT REVENUE
($)
3,414,216,360 3,740,881,935 3,917,220,495 4,264,731,310 4,672,563,251 5,015,725,756 46.91%
BAD DEBTS
($)
184,749,580 212,858,139 236,455,744 303,897,568 260,404,561 283,840,657 53.64%
CHARITY ($) 71,188,541 82,595,281 111,093,357 112,503,190 128,720,073 159,408,747 123.92%
TOTAL Deductions
($)
1,313,426,376 1,494,233,248 1,633,278,763 1,896,870,526 2,103,205,645 2,302,373,072 75.3%
Medicare, Medicaid and other Payer writeoffs
($)
1,057,488,255 1,198,779,828 1,285,729,662 1,430,370,801 1,714,080,645 1,859,123,668 75.8%
NET PATIENT REVENUE
($)
2,100,789,964 2,246,744,884 2,283,950,742 2,367,860,784 2,569,357,972 2,713,352,084 29.1%
OTHER Operating REVENUE
($)
59,268,328 64,978,999 68,254,344 78,261,879 91,915,545 74,227,059 25.2%
NON-
Operating REVENUE
($)
41,416,530 38,184,141 33,405,521 53,484,820 53,574,770 47,620,583 14.9%
TOTAL NET REVENUE
($)
2,201,474,822 2,349,908,024 2,385,610,607 2,803,505,051 2,714,848,287 2,835,199,726 28.8%
PAYROLL EXPENSE
($)
865,953,638 924,961,925 945,086,619 974,869,920 1,042,934,145 1.084,502,545 25.2%
TOTAL EXPENSE
($)
2,078,393,611 2,229,491,032 2,244,921,469 2,304,500,580 2,514,053,912 2,583,850,005 24.3%
PATIENT REVENUE MARGIN 1.1% 0.77% 1.71% 2.68% 2.15% 4.77% 333.9%
TOTAL MARGIN 5.6% 5.12% 5.90% 7.81% 7.40% 8.87% 58.3%
CHARGE PER ADJUSTED INPATIENT DAY $1,040.25 $1,138.13 $1,262.51 $1,302.94 $1,447.10 $1,548.43 48.9%
RECEIPTS PER ADJUSTED INPATIENT DAY $640.07 $683.55 $736.11 $723.42 $795.73 $837.65 30.9%
EXPENSE PER ADJUSTED INPATIENT DAY $633.25 $678.30 $723.53 $704.06 $778.61 $797.67 26.0%
PAYROLL PER ADJUSTED INPATIENT DAY $263.84 $281.41 $304.60 $297.84 $323.00 $334.80 26.9%
PAYROLL AS % OF TOTAL EXPENSE 41.7% 41.5% 42.1% 42.3% 41.9% 41.9% 0.6%
BAD DEBT AND CHARITY AS % OF TOTAL CHARGE 7.5% 7.9% 8.9% 9.8% 5.6% 5.7% -24.5%
TOTAL Deductions AS % OF TOTAL CHARGE 38.5% 39.9% 41.7% 44.5% 45.0% 45.9% 19.3%
OUTPT. REVENUE AS % TOTAL PATIENT REVENUE 25.3% 27.2% 29.0% 31.3% 32.9% 34.4% 36.0%
Admissions PER BED 31 31 33 34 34 34 9.8%
PATIENT DAYS PER 1,000 Population 1,005 963 876 882 848 843 -16.2%
Admissions PER 1,000 Population 144 141 139 138 137 137 -4.6%
Population 2,395 2,426 2,453 2,479 2,506 2,532 5.3%

 

Arkansas Hospitals % Change 1992-97
Beds Available -8.4%
Admissions 0.48%
PATIENT DAYS -11.6%
Non-Emergency OP Visits 78.5%
OUTPATIENT VISITS 49.3%
NON-Emergency AS A % OF TOTAL OP VISITS 19.5%
ADJUSTED PATIENT DAYS -1.32%
Occupancy RATE -3.20%
INPATIENT Surgeries -5.0%
Outpatient Surgeries 21.89%
TOTAL Surgeries 8.45%
Outpatient as % of Total Surgeries 12.39%
TOTAL FTE Employees 12.43%
FTEs PER ADJUSTED OCCUPIED BED 13.91%
GROSS REVENUE, INPATIENT 29.04%
GROSS REVENUE, Outpatient 99.76%
GROSS PATIENT REVENUE 46.91%
BAD DEBTS 53.64%
CHARITY 123.92%
TOTAL Deductions 75.3%
Medicare, Medicaid and other Payer writeoffs 75.8%
NET PATIENT REVENUE 29.1%
OTHER Operating REVENUE 25.2%
NON-Operating REVENUE 14.9%
TOTAL NET REVENUE 28.8%
PAYROLL EXPENSE 25.2%
TOTAL EXPENSE 24.3%
PATIENT REVENUE MARGIN 333.9%
TOTAL MARGIN 58.3%
CHARGE PER ADJUSTED INPATIENT DAY 48.9%
RECEIPTS PER ADJUSTED INPATIENT DAY 30.9%
EXPENSE PER ADJUSTED INPATIENT DAY 26.0%
PAYROLL PER ADJUSTED INPATIENT DAY 26.9%
PAYROLL AS % OF TOTAL EXPENSE 0.6%
BAD DEBT AND CHARITY AS % OF TOTAL CHARGE -24.5%
TOTAL Deductions AS % OF TOTAL CHARGE 19.3%
OUTPT. REVENUE AS % TOTAL PATIENT REVENUE 36.0%
Admissions PER BED 9.8%
PATIENT DAYS PER 1,000 Population -16.2%
Admissions PER 1,000 Population -4.6%
Population 5.3%


Source: Arkansas Hospital Association, American Hospital Association

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