Why Choose GRMC?
Balancing the complexities of healthcare takes a great deal of financial management, community support, exceptional service, and delicate negotiations with payers like Medicare. In 2010, GRMC received anticipated financial relief through healthcare reform. Though this will not be realized until 2012, advocacy at the national level has resulted in better reimbursement.
In 2010, GRMC reduced its costs significantly over 2009, through expanded group purchasing, shifts in costs for services using our Mercy Health Network relationship, and personal sacrifices by staff with the hopes that a short-term forfeit of benefits provides a long-term benefit of the hospital. These cost reductions of nearly $1.4 million helped in reducing the expenses over revenues and over all loss for the year.
Here’s a snapshot of the medical center’s 2010 finances.
Resources
Total Operating Revenue | $70,356,379
The medical center’s sources of revenue include patient charges, grants, and miscellaneous items. In 2010, this is the total from all sources.
Total Deductions | $33,557,183
The medical center was not able to collect all of the patient revenue due to charity, bad debt, and Medicare, Medicaid, and commercial insurance deductions.
$400,257 | Charity care is the uncollected revenue for care provided for those with little or no insurance who are unable to pay.
$1,910,055 | Bad debt is the uncollected amount of charges, deductibles, and co-payment obligations due from individuals who chose not to pay but did not qualify for charity.
$31,246,871 | Medicare, Medicaid, and commercial insurance deduction is the difference between charges and the pre-determined rates paid by payers. This amount is not billed to patients.
Total Net Revenue | $36,799,196
Net revenue is the amount remaining to operate the medical center after deductions are taken from revenue.
Total Expenses | $39,006,457
In order to care for patients, the medical center must incur expenses consisting of :
$23,015,699 | Staffing expenses of salaries, wages, and fringe benefits
$15,990,758 | Other expenses that include costs of supplies, interest, depreciation, and insurance
Total Operating Loss | $2,207,261
Operating loss is the next loss after expenses from healthcare operating activities. In 2010, the hospital experienced a loss from operations.
If we include non-operating sources of revenue (Contributions and Gain on Investments), GRMC had an overall loss of $1,049,220 for the year.
GRMC is a nonprofit, non-tax supported regional medical center serving more than 40,000 residents in a seven-county area of east central Iowa. Supporting and maintaining such a facility demands strong financial management and exceptional support from individuals in the service area.