Balancing the books at Hazel Hawkins
By Ken Underwood
Hazel Hakwins Hospital administrator
Hazel Hawkins Memorial Hospital and many other hospitals
throughout California are on the front lines of our healthcare
system
– operating around-the-clock emergency rooms and providing
life-saving emergency care to anyone who needs treatment. Our
hospital’s dedicated employees are the primary caregivers who treat
and attend to every patient who walks through the door, regardless
of their ability to pay. In 2007, we tre
ated 14,100 emergency patients, 23,400 clinic patients, 2,910
surgical patients, 2,310 patients admitted to the hospital, 37,200
skilled nursing resident days, and a total of 77,241 outpatient
visits. One third of our patients are either uninsured or covered
under Medi-Cal.
Balancing the books at Hazel Hawkins
By Ken Underwood
Hazel Hakwins Hospital administrator
Hazel Hawkins Memorial Hospital and many other hospitals throughout California are on the front lines of our healthcare system – operating around-the-clock emergency rooms and providing life-saving emergency care to anyone who needs treatment. Our hospital’s dedicated employees are the primary caregivers who treat and attend to every patient who walks through the door, regardless of their ability to pay. In 2007, we treated 14,100 emergency patients, 23,400 clinic patients, 2,910 surgical patients, 2,310 patients admitted to the hospital, 37,200 skilled nursing resident days, and a total of 77,241 outpatient visits. One third of our patients are either uninsured or covered under Medi-Cal.
California is facing a severe budget shortfall, estimated at $16 billion. To address this massive budget deficit, the governor signed a measure reducing Medi-Cal payments to healthcare providers by 10 percent, beginning July 1. The cut represents a $500 million loss to hospitals and will severely impact a wide range of services. California already has the largest uninsured population in the country – 6.8 million. The severity of the cuts will put at serious risk the future financial stability of hospitals. One in six hospitals and emergency rooms have closed in California in the past 10 years.
California’s rural hospitals and healthcare providers are projected to be among the hardest hit because they serve large Medi-Cal populations. The Medi-Cal program has been chronically under-funded for more than two decades and ranks dead last in the nation in payments to healthcare providers.
This reduction in funding translates to a $2.2 million cut to Hazel Hawkins Memorial Hospital. These cuts will seriously jeopardize access to hospital care for our working poor and uninsured, as well as specialized services such as emergency care that we all depend on regardless of our insurance status.
Statewide, nearly half of California’s hospitals operate in the red, and many are either near or already in bankruptcy proceedings. For-profit hospitals that are part of larger healthcare corporations have financial back-up in a time of need, as do multi-hospital, non-profit systems and county-owned hospitals, or they would close their doors. As a District hospital, we are owned and governed by the community. System or county backing or closure is not an option for Hazel Hawkins Memorial Hospital. We must find a way to balance our budget and comply with our bond obligations.
As difficult as it is, we are faced with the task of implementing budget-cutting measures to ensure the financial viability of the District. Service eliminations and closure of long-term care beds is imminent unless these cuts are minimized or eliminated. Our 2008 fiscal year-end, June 30, 2008, will reflect a payroll and benefit expense of $33.3 million for our 560 full and part-time employees, many covered under collective bargaining agreements with three separate labor organizations.
I’m extremely proud of our staff, who have worked hard to provide the high quality care this community deserves – close to home. Our most fragile and vulnerable residents in our long-term care facilities will suffer the most with this 10 percent reduction in nursing home payments. We project an annual operating loss of $1.8 million in our nursing homes with this legislated cut in payments.
Given the enormity of the state’s fiscal problems, it is clear that all state programs – including those affecting California’s hospitals – are going to face budget cuts. But we must do all we can to minimize the impacts of those budget cuts on patients. Last year health care reform was at the center of Governor Schwarzenegger’s policy platform. Included in his comprehensive healthcare reform initiative was a commitment to improve the Medi-Cal payment rates to providers in California. This latest Medi-Cal budget cut undermines that broad policy perspective by cutting those that are already at the bottom of the barrel in reimbursement rates.
It is simply not feasible to cut our way out of a $16 billion deficit. A balanced approach is needed to address the state’s budget problems. Hazel Hawkins Memorial Hospital is advocating for a balanced solution with a combination of new revenues and budget cuts, along with comprehensive health reform and adequate Medi-Cal payments. San Benito County deserves more from its elected state officials. These cuts will have a negative affect on the health of every resident in this county.
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