New City Council Reviews Memorial Hospital Situation
Memorial Hospital has improved from a $32 million loss in 2008 to a $32 million profit last year, but that financial turnaround doesn’t guarantee there won’t be future changes in ownership and management.
Tim Leigh, one of six new members of the Colorado Springs City Council, said, “They’re looking pretty smart at this point. But I would say that every question is an open question. We’re looking at all options.”
“We favor a local solution to this,” said Memorial CEO Larry McEvoy. “We really think that Memorial staying in the community is very important. Selling the hospital is not the answer.”
The city-owned hospital’s future has been hotly debated since 2008. The previous council and a citizens’ commission recommended that the hospital become an independent nonprofit entity under local control.
However, the new council and new Mayor Steve Bach are reconsidering the hospital’s options. Leigh said the previous effort did not adequately consider some options, such as selling the hospital. A new council task force will decide whether to submit a plan on the hospital’s future to voters in November.
After the 2008 financial losses, there was some concern that city taxpayers would have to bail out the hospital financially. Councilman Bernie Herpin said that concern is reduced because the hospital now turns a profit.
“But it can do better,” said Herpin.
On Monday, Memorial officials presented their first monthly report to the new city leadership. According to the report, hospital admissions are down almost 9 percent and net income is down 11 percent. However, the number of emergency room visits is up — partly, officials said, from patients who are under-insured or uninsured.
McEvoy said for Memorial to remain among the few that don’t receive taxpayer support, the hospital must change to focus more on preventive care and depend less on filling patient beds for income. He said half of every dollar collected pays for staff, and half of all health care revenue pays to treat patients with diabetes.
“Costs should go down,” McEvoy said. “It should be easier to use the care. It should be easier to understand the care. Only a few places are doing it the right way. We’re trying to be one of them.”
McEvoy said the recent profit allows the hospital to invest in technology and other necessary resources. “Nobody wants to come to a hospital and find out you’re using yesterday’s operating room gear,” he said.
Finally, McEvoy said Memorial’s 2008 struggles were partly affected by the overall economic downturn, and as a result the hospital now is more stable financially. Memorial also wants to become more of a regional hospital and sees a greater potential for growth there.
