Lawrence Memorial Hospital
Fourth Quarter 2004 Highlights Report to the City
Operations
· Lawrence Memorial Hospital ranks among the top hospitals in the Kansas City area for the treatment of heart attack, heart failure and pneumonia, according to a November report. LMH was the only hospital that had at least a 90 percent rating in all three of the areas. The report was the third in a series of standardized reports to the public on the quality of care provided to patients and is available online at www.healthykansascity.org.
· The Joint Commission on Accreditation of Healthcare Organizations conducted an on-site survey of LMH and its affiliated services in October. JCAHO surveyors were very complimentary of all areas of our inpatient, outpatient and clinical practice services, and especially cited our Oncology Center, 24/7 pharmacy coverage and Maternity Pre-Admission Clinic as best practices. The hospital was awarded three-year accreditation.
· Lawrence Memorial Hospital's Center for Rehabilitation in December was accredited by the Commission on Accreditation of Rehabilitation Facilities (CARF) for an additional period of three years. The Center for Rehabilitation is an acute rehabilitation program for adults experiencing significant decline in mobility and general function due to illness or accident such as stroke or a hip fracture.
· Joining the Medical Staff in the fourth quarter were Sanjeev Kumar, MD, neurology; Eden Wheeler, MD, physical medicine and rehabilitation; and Kimberley McKeon, MD, family practice. Laird Ingham, MD, a long-time member of the LMH Medical Staff, has resigned and has moved to Texas to practice at a VA Hospital.
· Deb Miers, who has been employed at LMH for 33 years, was promoted to Director of Food & Nutrition Services. She had previously served as Assistant Director.
· In recognition of an outstanding year in terms of quality, service and financial performance, LMH associates were awarded a one-time bonus of eight paid hours in October. The associate appreciation program also allowed PTO (paid time off) buy-down of up to 40 hours at a 75-cents-on-the-dollar conversion.
The LMH Board of Trustees approved the 2005 Budget in November. With increased activity and service to the community, revenue is at an all-time high. The provision of new services, acquisition of state-of-the-art technology, and preparation for a future facility expansion are activities proposed in the 2005 Budget that strengthen the hospital’s position as a regional provider of medical services.
· The hospital estimates $114 million in net revenue for 2005, an increase of nearly 8 percent over 2004. Total expenses are budgeted at $109.6 million, an increase of 9 percent. Despite significant increases in charitable care, contractual write-offs and expenses related to increased volume, the organization is committed to maintaining a positive net income. The 2005 Budget reflects a net income margin of 5.8 percent, which is reinvested back into the organization to better serve our community.
4th Quarter Report to the City – Page 2
· Inpatient volumes are expected to increase 2.7 percent next year due to the proposed interventional cardiology program. LMH is forecasting 6,849 adult and pediatric discharges for 2005. Outpatient services continue to drive the hospital’s volume increases. Outpatient revenue is projected to increase 13.6 percent based on gross charges. This includes the impact of rate increases in addition to some services expecting higher volumes next year, including Radiology, Wound Healing Center and the new Breast Center, along with growth from the addition of new physicians at Lawrence Neurology Specialists and Family Medicine of Baldwin City and continued development of the Eudora and Tonganoxie family practices.
· The increasing cost of acquiring state-of-the-art technology continues to be a financial challenge. The Capital Budget for 2005 totals nearly $6.5 million, an increase of $1.1 million over last year. Approximately $1.8 million is allocated for new and upgraded diagnostic imaging equipment. The largest item is a new Magnetic Resonance Imaging (MRI) unit to replace our original fixed unit, which is expected to cost $1.6 million, but will be allocated over two fiscal years. The Capital Budget also includes $300,000 to complete the purchase of the Radiology PACS (Picture Archiving & Communication System), of which $500,000 was allocated in the 2004 Capital Budget.
· Other significant capital expenditures include upgrades of the CT Scanner to a 16-slice unit, a cardiology information system, a new color digital Endoscopy system at LMH South, a redundancy system for information technology to provide high availability during downtime, connectivity technology to allow physicians access to hospital systems from their offices and homes, and the replacement of a generator and cooling tower at the Maine Street campus. Money is also set aside to begin the first phase of a facilities expansion project, including relocation of departments located in the 1969 wing of the old hospital, which is scheduled for demolition in 2005.
· Emphasizing the important role of community service, the budget includes contributions of more than $4.2 million for charity care, in-kind services donations, disaster readiness, health screenings, community education and outreach programs. LMH continues to provide essential health care services for an increasing population of patients who do not have the financial means to pay for the full cost of their treatment. The impact of charitable care deductions on the hospital has increased 115 percent in the last five years, and in 2005 that number is expected to climb to $4 million.
· Year-end 2004 financials will be available in mid-February 2005.
· Judy Keller and Kathy Greenlee were appointed to the LMH Board of Trustees in October, replacing Vickie Randel and David Corliss. Ms. Greenlee resigned the following month because of a conflict of interest, and Scott Bailey was reappointed to replace her. Officers for 2004-5 are Donna Osness, chairperson; Joe Flannery, vice-chairperson; Lindy Eakin, treasurer; and Verdell Taylor, secretary.
· The Stepping Out Against Breast Cancer Dance in October netted more than $30,000 for the LMH Endowment Association, which will be used to support mammograms for women who can’t afford them through the distribution of vouchers at Health Care Access, and for the new LMH Breast Center.