Samaritan Health Services Reported Net Loss in 2012

During the same time span, the assets of its five hospitals grew by 3.1 percent, reaching $34.8 million.

How well are Oregon’s hospitals meeting local needs? Are they making smart decisions about their money? Today, The Lund Report runs the fourth in a series of stories exploring hospitals across the state.

This project begins with a review of more than 50 hospitals licensed to operate in Oregon. These stories look at profit margins, hospital size and reach, and touch briefly on executive compensation. Part 1 profiled Providence Health System’s eight hospitals. Part 2 examined Legacy Health’s four Oregon hospitals. Part 3 visited with hospitals owned by four small chains: Kaiser, Asante Tuality and Salem Health. Today, we dig in to Samaritan Health Services.

After examining the details of every Oregon-licensed hospital, The Lund Report will follow up with stories that dive deep into the facts we’ve uncovered. We’ll ask about profits, compensation and the cost of caring for the poor.

Samaritan Health Services

Samaritan Health Services serves the mid-Willamette Valley and central Oregon Coast with hospitals, clinics and senior living centers. The Corvallis-based nonprofit was founded in 1997 when Mid-Valley Healthcare and Samaritan Inc. merged in an effort to more effectively and efficiently serve their communities. Over the years other organizations have joined Samaritan Health, which now operates five hospitals – two on behalf of public districts - and also runs a coordinated care organization known as InterCommunity Health Network.

Most of the system’s leaders earn fairly average salaries, according to an analysis of executive compensation by Dr.Ashish Jha of the Harvard School of Public Health. He found that typical CEOs earn between $400,000 and $500,000 – more at large institutions, or if they oversee more than one hospital, and less if they work in rural areas. Jha’s research looked at total reported compensation, a figure that includes actual pay as well as benefits like retirement plans and other benefits that executives don’t bring home.

The CEOs of Samaritan’s five hospitals each received 2012 total compensation of between $190,000 and $470,000, with those at the lower end of the scale reflecting the penalty that Jha found typical at smaller and rural hospitals.

President and CEO Larry A. Mullins received 2012 base pay of $587,213. Add in other forms of compensation, and he earned nearly three times that much. He received $27,165 in nontaxable compensation, $20,596 in deferred compensation and $934,672 in what Samaritan calls “other compensation” – bringing his total remuneration for the year to $1.6 million. In addition, he collected $712,232 during 2012, and, in 2011, by comparison, his total compensation was $1.4 million.

Mullins’ total compensation is higher than Jha’s calculations would consider typical - $725,000 would more closely match the nationwide expected pay for the manager of a multi-hospital system Samaritan’s size. But those calculations don’t factor in how other business lines, such as insurance, are likely to affect pay.

With program service revenue and investment revenue both declining, Samaritan Health reported a net loss of $42,288 in 2012, down from a $24.7 million profit a year earlier. It ended 2012 with $34.8 million in net assets, up 3.1 percent.

Good Samaritan Regional Medical Center

The largest hospital serving Linn, Benton and Lincoln counties, Corvallis-based Good Samaritan Regional Medical Center employed more than 2,100 people in 2012.

Steven Jasperson, CEO of Good Samaritan Regional Medical Center, received total compensation of $467,637 in 2012 – down from $500,289 a year earlier. The breakdown for 2012: $387,815 in base pay, $26,721 in nontaxable benefits, $20,596 in deferred compensation, and $32,505 in other compensation.

Finances, year 2012:

Net loss: $3 million, compared to a $1.97 million net loss in 2011.

Net patient revenue: $312 million, up 2 percent.

Reported charity care charges: $20.5 million, down 6 percent.

Profit margin: Negative 0.9 percent, compared to 0.6 percent a year earlier.

Size and scope, as of 2012:

Available beds: 165

Inpatient days: 40,281.

Emergency department visits: 18,658.

Outpatient visits: 170,767.

Samaritan Albany General Hospital

Though relatively small, Samaritan Albany Hospital employed more than 1,000 people over the course of 2012. Its joint replacement program was recognized as one of the top 10 percent in the country in both 2011 and 2012.

David Triebes, CEO of the hospital, received total compensation of $370,084 in 2012 – base pay of $296,311, $27,782 in nontaxable benefits, deferred compensation of $20,596 and other compensation totaling $25,395. His 2011 total compensation was higher, at $398,546.

Finances, year 2012:

Profit: $3.3 million, down 46.1 percent from 2011.

Net patient revenue: $120.4 million, up 11.2 percent.

Reported charity care charges: $7.6 million, down 4.7 percent.

Profit margin: 2.6 percent, down from 5.3 percent a year earlier.

Size and scope, as of 2012:

Available beds: 70.

Inpatient days: 9,940.

Emergency department visits: 22,082.

Outpatient visits: 100,786.

Samaritan North Lincoln Hospital

In 2001, North Lincoln Health District contracted with Samaritan Health to run its hospital. Since then, it has been known as Samaritan North Lincoln Hospital, under an agreement that continues through 2030. Based in Lincoln City, the hospital employed more than 400 people in 2012, and delivered 153 babies that year.

Samaritan North CEO Marty Cahill received total compensation of $188,856 in 2012 - $149,152 in base pay, $25,128 in nontaxable benefits, $10,897 in deferred compensation and $3,679 in other forms of compensation.

Finances, year 2012:

Net loss: $337,024, compared to a net loss of $307,632 in 2011.

Net patient revenue: $40.97 million, down 1.3 percent.

Reported charity care charges: $3 million, up 25.8 percent.

Profit margin: Negative 0.8 percent, compared to 0.7 percent a year earlier.

Size and scope, as of 2012:

Available beds: 25.

Inpatient days: 3,043.

Emergency department visits: 9,360.

Outpatient visits: 52,998.

Samaritan Pacific Communities Hospital

In 2002, Pacific Communities Health District contracted with Samaritan Health to run its hospital. Since then, it’s been known as Samaritan Pacific Communities Hospital, under an agreement that lasts through 2031. Today, the hospital employs 380 people, 110 of whom are nurses. It provides hospital care for a 270-mile area of Lincoln County, including Newport, Waldport, Toledo, Depoe Bay and Yachats.

Hospital CEO David Bigelow received 2012 total compensation of $246,069 - $179,539 in base pay, $15,930 in deferred compensation, $27,287 in nontaxable benefits and $23,313 in other forms of compensation.

Finances, year 2012:

Profit: $2.1 million, down 58.8 percent from 2011.

Net patient revenue: $62.2 million, up 1.1 percent.

Reported charity care charges: $4.3 million, up 12.1 percent.

Profit margin: 3.3 percent, compared to 8.1 percent a year earlier.

Size and scope, as of 2012:

Available beds: 25.

Inpatient days: 4,193.

Emergency department visits: 12,071.

Outpatient visits: 66,900.

Samaritan Lebanon Community Hospital

Started as a 50-bed acute-care hospital in 1952, Samaritan Lebanon Community Hospital was converted to a smaller 25-bed critical access hospital in 2005. It serves small towns in east Linn County, including Lebanon, Sweet Home and Brownsville.

Samaritan Lebanon Community Hospital CEO Becky Pape received $290,301 in total compensation in 2012 - $229,519 in base pay, $29,247 in nontaxable benefits, $20,128 in deferred compensation and $11,407 in other forms of compensation.

Finances, year 2012:

Profit: $2.97 million, down 22.6 percent from 2011.

Net patient revenue: $78.7 million, up 1.4 percent.

Reported charity care charges: $5.6 million, up 3 percent.

Profit margin: 3.3 percent, compared to 8.1 percent a year earlier.

Size and scope, as of 2012:

Available beds: 25.

Inpatient days: 5,224.

Emergency department visits: 15,800.

Outpatient visits: 86,979.

News source: