April 10, 2013 -- Revenue climbed at five central and southern Oregon hospitals in 2011, even as they all reduced how much they spent on charity care. Expenses were up as well, and four of the five saw profit margins decline, according to financial details revealed in this fifth installment in a series examining the state of Oregon hospitals.
Later this week The Lund Report will conclude its review of individual hospitals. The early stories in this series aim to provide snapshots of the 26 Oregon acute-care hospitals that pay a 4 percent tax on net revenue. In exchange for paying this tax, these hospitals receive higher Medicaid reimbursements for the care they provide. Next week, the series will begin to examine questions raised by these hospital snapshots. Upcoming installments will dig into executive pay, charity care and the Medicaid provider tax.
Today, The Lund Report examines the finances of Asante-owned Rogue Regional and Three Rivers medical centers, Sky Lakes Medical Center of Klamath Falls, Catholic-affiliated Mercy Medical, and no-longer-church-affiliated St. Charles Medical Center Bend.
The first four stories in the series covered:
-
Providence Health and Services, parent of Providence St. Vincent, which had a 12.4 percent profit margin in 2011.
-
Peace Health, which saw its president’s compensation top the million-dollar mark in 2011, and Salem Health, which reported a $23.9 million profit at its larger hospital.
-
Legacy Health. Though profits dropped at three Legacy hospitals, the nonprofit continued to pay ex-CEO Robert Pallari – who resigned in 2005, yet received $6.3 million during fiscal year 2012.
-
OHSU, Kaiser, Adventist and Tuality: Kaiser's hospitals reported an 8.5 percent profit, while Tuality Community Hospital reported net losses.
Asante’s hospitals
Medford-based Asante is a nonprofit healthcare company that owns two hospitals and operates a number of clinics along the Interstate 5 corridor in southern Oregon. Those hospitals – Rogue Regional Medical Center in Medford and Three Rivers Medical Center in Grants Pass – are at the heart of Asante’s efforts. The combined system’s revenue was $518.9 million in fiscal year 2011, with profit standing at $42.8 million.
Roy Vinyard, president and CEO of Asante, received total compensation of $1,270,590 million in fiscal year 2011 -- $566,662 in base pay, $202,922 in bonuses, $84,761 in nontaxable benefits, $383,567 in deferred compensation (usually pay an executive collects later, when his or her tax rates are lower), and $32,678 in other compensation.
Asante Rogue Regional Medical Center
Founded in 1958, Medford-based Rogue Regional Medical Center is Asante’s flagship hospital. Formerly known as Rogue Valley Medical Center, it completed a $6 million expansion to its neonatal intensive care unit in 2011.
Kent Brown, former CEO of Rogue Regional Medical Center, received $281,477 in base pay in fiscal year 2011, plus $82,134 in bonuses, $26,020 in deferred compensation, $21,917 in nontaxable benefits and $64,471 in other compensation – bringing his total remuneration to $476,019. Brown stepped down in April 2012 after five years on the job. IRS tax documents detailing the salary of his replacement, current CEO Scott Kelly, are not yet publicly available.
Finances, year 2011:
-
Profit: $16.8 million, down 55.8 from a year earlier.
-
Net patient revenue: $363.4 million, up 4.29 percent.
-
Reported charity care charges: $37.7 million, down 3.9 percent.
-
Profit margin: 4.6 percent, compared to 10.8 percent in 2010.
Size and scope, as of 2011:
-
Staffed beds: 302.
-
Inpatient days: 66,401.
-
Emergency department visits: 30,465.
-
Outpatient visits: 356,382.
Asante Three Rivers Medical Center
Grants Pass-based Three Rivers Medical Center prides itself on awards and citations it has received for quality care and good practices. It was designated a “Baby Friendly Hospital” by the World Health Organization and UNICEF, and was named a “Mother Friendly Hospital” by the Center for Improving Maternity Services.
CEO Win Howard received total compensation of $343,005 in FY 2011 -- $187,941 in base pay, $51,720 in bonuses, $18,470 in deferred compensation, $20,686 in nontaxable benefits and $64,188 in other compensation.
Finances, year 2011:
-
Profit: $8.9 million, down 16.4 percent from 2010.
-
Net patient revenue: $135.8 million, up 6.7 percent.
-
Reported charity care charges: $21.4 million, down 5.6 percent.
-
Profit margin: 6.5 percent, compared to 8.3 percent a year earlier.
Size and scope, as of 2011:
-
Staffed beds: 105.
-
Inpatient days: 21,794.
-
Emergency department visits: 33,160.
-
Outpatient visits: 239,943.
Mercy Medical Center
The Sisters of Mercy raised $12,000 from residents of Roseburg to build and open Mercy Medical Center in 1909. Nearly nine decades later, the hospital joined with other faith-based groups to found Catholic Health Initiatives, or CHI. Today, CHI is a national nonprofit that operates 73 hospitals, 40 senior-living care centers, two nursing colleges and many other health-related endeavors. Mercy Medical, meanwhile, continues to be Douglas County’s only acute-care hospital.
Kelly Morgan, CEO of Mercy Medical, received total 2011 compensation of $696,946. Of that, $424,199 came in the form of base pay, $179,533 in bonuses, $58,064 in deferred compensation, $14,218 in nontaxable benefits and $20,932 in other compensation. Morgan was paid by Catholic Health Initiatives, not directly by Mercy Medical, unlike other executives at the hospital.
Finances, year 2011:
-
Profit: $22.1 million, up 62.3 percent from the year before.
-
Net patient revenue: $177.8 million, up 10.3 percent.
-
Reported charity care charges: $13.4 million, down 23.7 percent.
-
Profit margin: 12.8 percent, compared to 8.3 percent in 2010.
Size and scope, as of 2011:
-
Staffed beds: 141.
-
Inpatient days: 29,502.
-
Emergency department visits: 41,824.
-
Outpatient visits: 287,012.
Sky Lakes Medical Center
Founded in 1965, Klamath Falls-based Sky Lakes Medical Center is the only full-service hospital in a 10,000-square-mile area of southern Oregon and northern California. In 2007, the hospital opened a 100,000-square-foot inpatient care area. Though it is independent, Sky Lakes has established an affiliation with Oregon Health & Science University through which the Klamath Falls nonprofit carries out research and acts as a teaching hospital.
President and CEO Paul Stewart’s 2011 base pay was $317,525, but add in other forms of compensation and he actually made much more. He received $12,250 in retirement or deferred compensation benefits, $13,824 in nontaxable benefits, and $175,000 described by Sky Lakes only as “other compensation.” Add it all up, and Stewart’s total compensation for the year was $518,599.
Finances, year 2011:
-
Profit: $12.9 million, down 9 percent from the previous year.
-
Net patient revenue: $166.7 million, up 2.3 percent.
-
Reported charity care charges: $11.9 million, down 3.9 percent.
-
Profit margin: 7.5 percent, compared to 10.8 percent in 2010.
Size and scope, as of 2011:
-
Staffed beds: 100.
-
Inpatient days: 20,181.
-
Emergency department visits: 19,833.
-
Outpatient visits: 219,990.
St. Charles Medical Center Bend
Known as Cascade Healthcare Community until 2010, St. Charles Health System grew out of a merger of St. Charles Medical Center Bend and Central Oregon District Hospital in Redmond. Today both those hospitals use the St. Charles name, and their parent company also runs Pioneer Memorial Hospital in Prineville and operates clinics throughout Central Oregon.
St. Charles Bend, which opened in 1918, overshadows its sibling hospitals. It contributed close to 60 percent of its parent nonprofit’s revenue in fiscal year 2011. Built by Sisters of St. Joseph, the hospital ended its affiliation with the Catholic Church in 2010.
James Diegel, president and CEO of the St. Charles Health System, had official base pay of $450,202 in 2011, but other forms of compensation brought his total remuneration for the year to $1,170,600. He received $137,223 in bonuses, $99,057 in deferred compensation, $28,000 in nontaxable benefits, and $456,118 described by St. Charles only as “other compensation”
James Henry, CEO of St. Charles Medical Center Bend, had base pay of $262,545 in 2011, and received a $54,631 bonus. He also received $43,088 in deferred compensation, $24,485 in nontaxable benefits, and $187,885 in other compensation – bringing his total benefits and pay for the year to $571,994.
Finances, year 2011:
-
Profit: $14.2 million, down 26.1 percent from a year earlier.
-
Net patient revenue: $345.8 million, up 2.2 percent.
-
Reported charity care charges: $22.1 million, down 30.2 percent.
-
Profit margin: 3.8 percent, compared to 5.2 percent in 2010.
Size and scope, as of 2011:
-
Staffed beds: 281.
-
Inpatient days: 59,094.
-
Emergency department visits: 29,666.
-
Outpatient visits: 294,085.
FOR MORE INFORMATION
To review the financial data for these hospitals, click here.
To reach reporter Courtney Sherwood, write to [email protected].
Image for this story by Dino Borelli (CC BY-NC 2.0) via Flickr.
