St. Luke’s responds to concerns about finances

Published 2:04 pm Friday, July 23, 2010

Editors note: The following statement regarding Polk Countys donation to St. Lukes Hospital was issued last week by St. Lukes CEO Ken Shull and is reprinted here in full:

As Polk Countys largest private employer and our communitys safety net, St. Lukes Hospital approached the Polk County Board of Commissioners last spring to explore funding support for a strategy that would strengthen our ability to meet the healthcare needs of our community.

Faced with challenging times in healthcare delivery, many community hospitals have closed, leaving a critical void in a countys quality of life and ability to attract or retain industry and residents. We did not want that for Polk County.

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With numerous citizens voicing their support, hospital representatives asked the board of commissioners to support the first phase of a strategic plan that would improve the financial viability of the countys small hospital yet large employer. Granting those funds, hospital officials proposed, would allow us to upgrade infrastructure, information technology, surgical technology and marketing.

These upgrades would enable St. Lukes to better compete for orthopaedic business, bringing in patients from across the state and across state lines.

With economic development funds available, the commissioners appointed a task force to begin discussions on how best to use those funds to benefit Polk County. The task force was made up of representatives of St. Lukes Hospital and Polk County, including the Polk County Economic Development Office.

After an in-depth study of our request and critical needs, this task force presented a compelling statement for funding that would support the local economy through the growth of Orthopaedics in particular and surgery in general at St. Lukes. Polk County commissioners received our strategy for sustainability and growth.

In June 2009, they voted unanimously to grant $285,000 the County received from the sale of the James Tool Building, monies specifically designated for economic development.

Its important to know that these funds were project specific and utilized for no other purpose than to strengthen a successful hospital service line. Drawn down in phases as projects/purchases have been completed, the EDC funds have been spent solely on the items shown in the table below to complete Phase 1 of St. Lukes Hospitals Strategy For Growth.St. Luke’s Hospital use of Polk County funding

June, 2009

Area&bsp;&bsp; &bsp;Item&bsp;&bsp; &bsp;Amount

Office expansion&bsp;&bsp; &bsp;Construction&bsp;&bsp; &bsp;$33,945.06

C Arm Xray&bsp;&bsp; &bsp;Imaging technology&bsp;&bsp; &bsp; $87,000.00

Information Tech. &bsp;&bsp; &bsp;Hardware&bsp;&bsp; &bsp;$29,254.00

Information Tech. &bsp;&bsp; &bsp;Fiber optics&bsp;&bsp; &bsp;$12,655.23

Operating room&bsp;&bsp; &bsp;OR software&bsp;&bsp; &bsp;$46,500.00

Surgical Clearance&bsp;&bsp; &bsp;Surgery scheduler&bsp;&bsp; &bsp;$27,400.00

Marketing/advertising&bsp;&bsp; &bsp;&bsp;&bsp; &bsp;$48,245.71

Total&bsp;&bsp; &bsp;&bsp;&bsp; &bsp;$285,000.00

Growth in our orthopaedics program has indeed generated increased revenues that have cascaded to other services provided by St. Lukes for the health, wellbeing and quality of life for Polk County residents. This has helped to strengthen our financial foundation, not only as a healthcare provider, but also as a large employer and good corporate citizen.

In addition, weve improved our financial situation by managing expenses and by improving operations and staff productivity. Eight months into this fiscal year, we are making a little profit, the first since 1997. One year ago, the idea of breaking even seemed impossible.

After salaries and wages had been frozen for 12 months, our Board of Trustees voted unanimously to share this success with those whove worked hard to help improve St. Lukes financials our staff. Though small, this raise is extremely important to employee morale and retention especially in critical needs areas for highly trained medical professionals on call 24/7, 365 days a year. &bsp;

Many counties our size, unfortunately, have lost their hospital and safety net. In these counties, loss of the small community hospitals has had a devastating economic impact. Whether through volunteerism, philanthropy or county assistance, community support is vital to the stability of a community hospital, especially in areas with little population or county growth.

Without doubt, the countys investment has proven successful. St. Lukes Hospital is stronger and leaner and here to provide exceptional care, close to home, thanks to the support from our county and our community.

Ken Shull, CEO St. Lukes Hospital