Southwest Memorial Hos-pital provides medical care at rates as much as 39 percent lower than comparable hospitals, according to figures released by the Colorado Hospital Association, which publishes a comparative-charge information schedule for each fiscal quarter.

The study surveyed a number of common medical problems, and then compared the cost for each of these services at Durango’s Mercy Hospital and at SWMH with the average cost listed by rural hospitals in Colorado.

Approximately 17 hospitals are within Southwest’s peer group, and the study included inpatient and outpatient diagnoses such as simple pneumonia, heart failure, vaginal delivery, colonoscopy, and removal of cataracts.

Simple pneumonia and other ailments can vary in length and type of treatments, so the hospital association had to average costs from patients to be able to make a valid statistical comparison between the groups.

Southwest charged the same or less than its peer group on 12 of the 18 medical procedures, and less than Mercy on 15 of the procedures.

For instance, ceasarean deliveries at Southwest cost an average of $6,138, compared to an average of $6,962 at Mercy and of $7,609 for the peer group.

The hospital has had a difficult financial struggle in the past few years, and may look at raising prices to offset some costs, according to George Brisson, chief operating officer.

Covering uncompensated care for this region has been particularly difficult for Southwest, he said, because the hospital operates in an economically depressed region. Southwest Health System, the private, nonprofit group that manages SWMH, writes off 9 to 10 percent of its earnings — about $3 million per year — because of charity care.

In order to cover these costs, Brisson said it’s likely that the hospital will have to raise prices on medical procedures at Southwest that cost less than at their competitors.

He estimated that prices would be raised in the next budget cycle. "We’ll try not to raise charges too much," Brisson said.

Bob Peterson, chief executive officer of SHS, said that trying to maintain quality of care while keeping prices affordable can be difficult. "I think that it’s a balancing act," said Peterson.

The SHS board has been trying to attract more surgeons to the area for some time. Because of a lack of surgeons to cover a 24-hour-a-day, seven-day-a-week surgery schedule, the hospital is diverting patients during uncovered shifts.