Weirton Medical Center Restructures To Alleviate Debt
By Harris, Linda
Weirton Medical Center furloughed 18 employees, reassigned five others and eliminated 20 jobs through attrition as part of a restructuring plan aimed at reversing a $4.7 million shortfall recorded for fiscal year 2006.
WMC spokeswoman Kelli McCoy said the restructuring plan, which also addresses revenue by expanding services and increasing market share, should realize a $3 million swing in hospital finances, though she could not say how much of it would be attributable to job reductions.
McCoy blamed the cuts on increased salaries and wages, higher medical supply and utility costs, higher provider taxes and the widening gap between Medicare and Medicaid reimbursements and actual provider costs, as well as the high rate of patient defaults.
She said the hospital lost as much as $9 million last year treating patients who later refused to pay their bills – a circumstance far removed from the $3 million in charity care WMC provided area residents in 2006, which McCoy said is part of WMC’s mission as a community hospital.
McCoy said the hospital had seen operating losses in recent years, but the $4.7 million in red ink posted last year “was the most significant.”
In a release announcing the cuts, WMC officials said the changes were done “to ensure WMC’s viability into the future and position WMC to grow the services it offers to members of the community.”
“Our goal was to not affect direct acute patient care,” McCoy added.
She said WMC provides some $3 million in charity care in 2006, something the hospital is obligated to provide to the less fortunate. But she said the hospital also incurred another $9 million in bad debt – that’s people who have the means to pay for their care and agree to do so, only to refuse to honor the debt later.
On the plus side, McCoy said, the hospital is working to grow volume in key areas, such as physical therapy and surgery, and taking steps to boost market share, while at the same time exercising more control over factors such as overtime costs and the supply chain.
WMC also recently signed an agreement with the Highmark insurance company, allowing more people the opportunity to come to the center.
Meanwhile, Dr. Joseph P. Endrich, WMC president and CEO, said patients should not notice any changes “as our commitment to providing quality care remains stronger than ever.”
Copyright State Journal Corporation Jan 12, 2007
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