By Jim Mimiaga

The financial health of Southwest Memorial Hospital is below expectations for the first month of 2000 — slow growth that can be attributed to a lack of space at the 61-bed acute care facility, according to Chief Operating Officer George Brisson.

"We’re working our way out of a hole for now," Brisson said. "One negative is that the building is really just too small for us to work with anymore. We need more space if we are to develop more revenues."

Covering uncompensated care for this region has also been particularly difficult for Southwest Memorial, Brisson said, because it operates in an economically depressed region. SHS writes off nine to ten percent of its earnings — about $3 million per year —due to charity care.

"This area is very high in uncompensated care, and we’re struggling to live with that," he said.

An overview of fiscal matters showed that overall patient revenues were $73,103 below budget for January. The hospital admitted 182 patients last month, with an average stay of 2.9 days. That is lower than the same month last year, when 208 patients were admitted for an average of 3.6 days. Total revenues for outpatient and inpatient revenues came to $2.8 million. After subtracting revenue deductions resulting from Medicare, charity care and managed care payments, the hospital recorded a revenue before deductions of $1.7 million for January. Total hospital assets are valued at $14.6 million, less accumulated depreciation.

Excess revenues over total expenses came in at $94,520 for January, although doubtful collections of past due accounts rose to $95,204 during the same month. Salaries represented 5 percent of total costs, or $735,745 for January. That was $36,157 over budget, due in part to an increase in contractuals for nursing because of an industry-wide shortage.

Other matters at Southwest Memorial were discussed at the SHS Feb. 24 meeting included:

• Southwest CEO Bob Peterson gave an update on staff recruitment. The surgeon staff at Southwest Memorial is down to two full-time general surgeons due to the retirement of Dr. Gerald Howe and the unexpected resignation of Dr. Kazinski. SHS has received 45 general surgeon resumes, 15 of which look promising. Southwest has set aside $200,000 for recruitment priorities to hire one general surgeon, two internists, one urologist, and one anesthesiologist.

• Quorum, Inc., Southwest’s health-management group, has ordered an architectural review of the Vista Grande nursing home to determine how it can be best utilized. Extensive remodeling is not possible due to toxic asbestos in the walls that, if disturbed, can cause respiratory illness. An on-site analysis is expected this week to determine what departments could realistically move into the building adjacent to Southwest Memorial. Southwest may expand into the 76-bed facility if Vista Grande’s management group, Continuum, is given the green light by Southwest’s two governing boards to construct a new nursing home on the hospital campus. The other option under the hospital’s management lease with Continuum is to extend that agreement long-term.

• Southwest will under go an annual accreditation survey this week by the Joint Commission of Accreditation for Health-Care Organizations. The intensive, comprehensive survey analyzes all aspects of hospital operations for code, safety, and regulatory compliance with national standards.

• The SHS board approved Southwest education director Joe Huggins’ plan to start an Internet Web site for the hospital. Huggins will be researching the details of what the site should include, and how those services can be used to improve hospital operations. An Intranet system will also be included for employees to access information in-house more quickly, such as with code requirements, or other reference material.

"I’ve had professionals ask me if we really exist because they cannot find us on the Internet," said Peterson. "So this can be a help, but it needs to be done so that the public can get some practical use out of it."