In an era of hospital consolidation, one of the state’s newest mergers is underway between a large Portland-based chain and a small Willamette Valley community hospital.
Silverton Health is the newest addition to the Legacy family. The previously independent Silverton chose to align with Legacy last year after a long search that involved careful consideration of Providence Health and Services, with community members ultimately choosing a secular nonprofit over a Catholic one.
Legacy reported $156.6 million in profit, or net revenue above expenses, in its most recently reported fiscal year, which ended March 31, 2015. On that date, the system had had $2.1 billion in assets.
That’s among the findings of this latest examination of hospital records.
For the fourth year, The Lund Report is digging into the money and operations of Oregon’s hospitals. In our first six stories, we examined Providence Health and Services; Kaiser Permanente and Asante; PeaceHealth; three faith-based chains with small Oregon footprints; OHSU and its new affiliates Salem Health and Tuality; and Samaritan Health Services. This week we’re digging into Legacy Health.
The figures underpinning these examinations come from multiple sources:
- Profit, revenue and charity care figures come from audited reports prepared by each hospital and submitted to the Office for Oregon Health Policy & Research, which also provided information about capital projects under way.
- The size and reach of each hospital, as summarized through available beds, and inpatient, outpatient and emergency room figures, are reported by hospitals to the state-mandated Databank program.
- Hospital performance metrics are tracked by the Oregon Health Authority.
- Additional financial details about hospital chains come from IRS 990 forms and from the systems’ own unaudited reports.
Though some limited full-year financial information has been released by Legacy Health about its 2015 fiscal year finances, the most recent detailed data about its individual hospitals dates to 2014.
Once we’ve examined every general admitting hospital in the state, we intend to report on the executive compensation, including bonuses, paid to hospital executives throughout Oregon.
Legacy Health
Founded in 1970, Legacy Health originally combined Episcopal and Lutheran medical groups into a single chain. Today, the nonprofit system runs two regional hospitals out of Portland – one with an on-site children’s hospital. It also operates three other Oregon community hospitals, a Vancouver community hospital and a number of labs, clinics and other healthcare operations.
Legacy Emanuel Medical Center
Founded in 1912 as Emanuel Hospital, today’s Legacy Emanuel has been through numerous expansions over the years. In 2012, its centennial year, it opened the nine-story Randall Children’s Hospital at its campus. It also houses the Oregon Burn Center and a nurse training center. OHSU and Legacy Emanuel are Oregon’s only Level 1 trauma centers, capable of providing top-level surgical care to patients in severe need.
This summer, Legacy Emanuel spent $2.1 million to replace its daVinci Si Girgical Robot with an upgraded version of the same heart surgery device, according to capital spending reports filed with the state.
Finances, year 2014:
- Net income: $1,079,000, down 82.71% from 2013.
- Net patient revenue: $620,665,000, up 9.64%.
- Charity care: $71,768,000, up 3.14%.
- Profit margin: .16%, down from 1.04% a year earlier.
Size and scope, 2014:
- Available beds: 427, the same as last year.
- Inpatient days: 104,345, up 5.65%.
- Emergency department visits: 51,439, up 6.79%.
- Outpatient visits: 290,750, up 8.7%.
Legacy Good Samaritan Medical Center
Founded in 1875 by the Episcopal Diocese of Oregon, today’s Legacy Good Samaritan occupies a bustling sector of Northwest Portland. Upgrades that coincided with the hospital’s 140th anniversary last year improved its Northwest 23rd Avenue façade and created an urgent care center within its emergency department. The remodel cost an estimated $10 million.
Finances, year 2014:
- Net income: $21,365,000, up .38% from 2013.
- Net patient revenue: $278,750,000, up 2.54%.
- Charity care: $27,817,000, down 15.12%.
- Profit margin: 7.22%, down from 7.44% a year earlier.
Size and scope, 2014:
- Available beds: 247, down from 248 last year.
- Inpatient days: 51,170, up 1.8%.
- Emergency department visits: 23,609, up 9.88%.
- Outpatient visits: 162,511, up 3.44%.
Legacy Meridian Park Medical Center
Tualatin’s Legacy Meridian Park Medical Center is one of Oregon’s younger hospitals, founded in 1973. Officials at Legacy say that Meridian Park offers a sophisticated range of inpatient and outpatient services, despite its relatively small size and its status as a community hospital.
Finances, year 2014:
- Net income: $29,568,000, down 3.11% from 2013.
- Net patient revenue: $185,907,000, up 6.56%.
- Charity care: $15,182,000, down 4.79%.
- Profit margin: 14.56%, down from 16.07% a year earlier.
Size and scope, 2014:
- Available beds: 130, the same as last year.
- Inpatient days: 28,696, up 4.33%.
- Emergency department visits: 29,747, up 6.3%.
- Outpatient visits: 165,426, down 2.59%.
Legacy Mount Hood Medical Center
Founded in 1922 as Gresham Community Hospital, Legacy Mount Hood has been at its current location since 1984. It’s the smallest hospital in Legacy’s Oregon system
But Mount Hood is growing, last year opening a 68,000-square-foot outpatient and medical services building to the east of the current hospital building, which cost a reported $27 million. Earlier this year, Legacy Mount Hood spent $2.5 million to purchase a new MRI machine for the medical office building, which hospital officials said would allow community members greater evening and weekend access to MRI equipment.
Finances, year 2014:
- Net income: $10,582,000, up 218.73% from 2013.
- Net patient revenue: $118,458,000, up 16.73%.
- Charity care: $22,374,000, down 10.88%.
- Profit margin: 8.53%, up from 3.14% a year earlier.
Size and scope, 2014:
- Available beds: 93, up from 92 last year
- Inpatient days: 21,030, up 2.62%.
- Emergency department visits: 44,758, up 7.85%.
- Outpatient visits: 109,010, up 19.43%.
Legacy Silverton Medical Center
Silverton Hospital was once a subsidiary of Silverton Health, a community-based nonprofit. But as of this summer, Silverton is aligning with Legacy and changing its name to Legacy Silverton Medical Center. In addition to the hospital, Silverton Health’s clinics throughout the Willamette Valley are joining the Legacy system.
Silverton Health officials said they chose to align with Legacy after a long search for a community partner in healthcare. Some community members also raised concern about earlier talks with Providence, because of worries that a Catholic affiliation might limit access to community health services.
Silverton’s hospital was founded in 1918 in a two-story building, and moved to its current location in 1937.
Finances, year 2014, when still operating as Silverton Hospital
- Net loss: $1,642,188, compared to a net loss of $3,243,909 last year.
- Net patient revenue: $108,902,889, up 21.%.
- Charity care: $7,245,123, down 36.91%.
- Profit margin: negative 1.42%, up from negative 3.47% a year earlier.
Size and scope, 2014, when still operating as Silverton Hospital
- Available beds: 48, the same as last year.
- Inpatient days: 8,437, down 1.95%.
- Emergency department visits: 26,726, up 12.32%.
- Outpatient visits: 199,170, up 17.72%.
Courtney Sherwood can be reached at [email protected], or follow her on Twitter at @csherwood.
With the decline at every Legacy hospital in charity care it would be helpful to see what is happening with that revenue instead. It should be going into Community Benefit but little is being done to hold the "non-profit" medical systems accountable. You are in the position to force the question. Please do.
Lynn Knox, State Health Care Liaison
Oregon Food Bank, [email protected]