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Small Hospitals See Operating Profits Fall

Charity care spending has begun to tick up, cutting into the margins of small rural hospital, echoing a trend seen at larger, urban medial centers.
April 5, 2017

Small rural hospitals that often act as vital lifelines for remote communities across Oregon are starting to see profits fall, following several strong years in the aftermath of the Affordable Care Act.

In an earlier story, we dug into the finances of the state’s largest hospitals. 

Today, we look at much smaller institutions, which may carry less clout statewide, but which rural areas of the state rely on. Classified as Type A hospitals if they are more than 30 miles from the nearest competition, or Type B if they are less than 30 miles from the next-nearest hospital, the small medical centers we’re reviewing in this story charity care spending rise in the third quarter of 2016, compared to the third quarter of 2015.

Charity care, the term hospitals use when forgiving the debts of patients unable to pay for treatment, dropped sharply after the Affordable Care Act, which vastly increased insurance rolls. But in the third quarter of 2016, charity care spending at the state’s 12 Type A hospitals climbed to $3.87 million, up from $3.38 million a year earlier. At Oregon’s 20 Type B hospitals, it climbed to $8.75 million, up from $8.41 million a year earlier.

“In Q3 of 2016, Oregon’s type A and B hospitals began to see the downward trend in margins like their larger counterparts,” said Philip Schmidt, associate vice president of the Oregon Association of Hospitals and Health Systems. “For these smaller facilities, any erosion of financial performance is something to closely monitor given the significant economic impact they provide their communities. We have confidence in their leadership and know they will manage any challenges.”

Here’s how profits from operations (as opposed to investments, taxes or one-time events) climbed or fell at these smaller hospitals, from largest operating profit to steepest loss:

  • St Anthony Hospital: $3,926,924 operating profit, up by $2,176,170 from Q3 2015.
  • Good Shepherd Medical Center: $3,342,088 operating profit, down by $493,578 from Q3 2015.
  • Tillamook County General Hospital: $1,971,223 operating profit, up by $763,188 from Q3 2015.
  • Samaritan Lebanon Hospital: $1,895,055 operating profit, up by $739,509 from Q3 2015.
  • St Charles - Redmond: $1,757,905 operating profit, down by $1,815,694 from Q3 2015.
  • Columbia Memorial Hospital: $1,488,906 operating profit, up by $718,509 from Q3 2015.
  • Providence Newberg Medical Center: $1,412,666 operating profit, down by $1,420,124 from Q3 2015.
  • Grande Ronde Hospital: $1,299,364 operating profit, up by $551,865 from Q3 2015.
  • Samaritan North Lincoln Hospital: $1,050,994 operating profit, up by $887,657 from Q3 2015.
  • Samaritan Pacific Community Hospital: $956,691 operating profit, up by $133,231 from Q3 2015.
  • Mid-Columbia Medical Center: $872,296 operating profit, up by $872,969 from Q3 2015.
  • St Charles - Prineville: $740,189 operating profit, down by $1,433,772 from Q3 2015.
  • Santiam Memorial Hospital: $669,269 operating profit, up by $90,765 from Q3 2015.
  • St Alphonsus Medical Center Ontario: $638,257 operating profit, up by $752,336 from Q3 2015.
  • PeaceHealth Peace Harbor: $534,316 operating profit, up by $313,980 from Q3 2015.
  • West Valley Hospital: $321,730 operating profit, down by $856,968 from Q3 2015.
  • Harney District Hospital: $165,271 operating profit, up by $714,357 from Q3 2015.
  • PeaceHealth Cottage Grove: $77,102 operating loss, up by $1,401,136 from Q3 2015.
  • St Alphonsus Medical Center Baker City: $130,966 operating loss, down by $79,250 from Q3 2015.
  • St Charles - Madras: $132,341 operating loss, down by $1,025,036 from Q3 2015.
  • Lower Umpqua Hospital: $194,836 operating loss, up by $223,647 from Q3 2015.
  • Blue Mountain Hospital: $223,751 operating loss, down by $21,315 from Q3 2015.
  • Southern Coos Hospital: $237,322 operating loss, down by $180,697 from Q3 2015.
  • Curry General Hospital: $247,981 operating loss, up by $160,993 from Q3 2015.
  • Wallowa Memorial Hospital: $403,927 operating loss, down by $544,833 from Q3 2015.
  • Lake District Hospital: $472,271 operating loss, down by $125,238 from Q3 2015.
  • Pioneer Memorial Heppner: $600,135 operating loss, down by $203,786 from Q3 2015.
  • Legacy Silverton Medical Center: $1,083,852 operating loss, down by $1,897,422 from Q3 2015.
  • Coquille Valley Hospital: $1,388,688 operating loss, down by $560,399 from Q3 2015.
  • Providence Seaside Hospital: $1,463,770 operating loss, down by $1,137,931 from Q3 2015.
  • Providence Hood River Hospital: $1,696,976 operating loss, down by $627,822 from Q3 2015.
  • Ashland Community Hospital: $2,338,862 operating loss, down by $2,950,351 from Q3 2015.

A close-up look at each of these small hospitals follows.

Ashland Community Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: negative $2,338,862, down from $611,489 in the third quarter of 2015.
  • Revenue sources: 4.65% self pay, 41.94% commercial insurance, 19.48% Medicaid, 33.93% Medicare.
  • Charity care: $450,971, up from $227,326 in the third quarter of 2015.

Blue Mountain Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $185,776, down from $224,257 in the third quarter of 2015.
  • Revenue sources: 6.14% self pay, 31.39% commercial insurance, 16.04% Medicaid, 46.43% Medicare.
  • Charity care: negative $1, down from $48,278 in the third quarter of 2015.

Columbia Memorial Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $2,141,207, up from negative $115,050 in the third quarter of 2015.
  • Revenue sources: 7.57% self pay, 40.09% commercial insurance, 16.54% Medicaid, 35.80% Medicare.
  • Charity care: $574,895, up from $495,796 in the third quarter of 2015.

Coquille Valley Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: negative $1,177,425, down from negative $617,691 in the third quarter of 2015.
  • Revenue sources: 4.51% self pay, 24.26% commercial insurance, 12.13% Medicaid, 59.09% Medicare.
  • Charity care: $46,994, up from $13,047 in the third quarter of 2015.

Curry General Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $116,694, up from negative $79,491 in the third quarter of 2015.
  • Revenue sources: 5.37% self pay, 35.45% commercial insurance, 20.68% Medicaid, 38.50% Medicare.
  • Charity care: $87,130, down from $127,528 in the third quarter of 2015.

Good Shepherd Medical Center, third quarter 2016 snapshot:

  • Total margin, or profit: $5,784,505, up from $4,195,665 in the third quarter of 2015.
  • Revenue sources: 6.06% self pay, 48.36% commercial insurance, 23.78% Medicaid, 21.81% Medicare.
  • Charity care: $1,069,669, up from $744,042 in the third quarter of 2015.

Grande Ronde Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $4,026,034, up from negative $80,228 in the third quarter of 2015.
  • Revenue sources: 2.30% self pay, 12.56% commercial insurance, 35.88% Medicaid, 49.26% Medicare.
  • Charity care: $597,710, up from $384,386 in the third quarter of 2015.

Harney District Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: negative $739,973, down from $484,276 in the third quarter of 2015.
  • Revenue sources: 5.13% self pay, 25.53% commercial insurance, 26.67% Medicaid, 42.67% Medicare.
  • Charity care: $30,971, up from $14,584 in the third quarter of 2015.

Lake District Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $41,263, down from $185,506 in the third quarter of 2015.
  • Revenue sources: 4.33% self pay, 34.67% commercial insurance, 23.46% Medicaid, 37.53% Medicare.
  • Charity care: $98,635, up from $84,764 in the third quarter of 2015.

Legacy Silverton Medical Center, third quarter 2016 snapshot:

  • Total margin, or profit: negative $1,067,626, down from $826,883 in the third quarter of 2015.
  • Revenue sources: 2.70% self pay, 62.75% commercial insurance, 25.20% Medicaid, 9.35% Medicare.
  • Charity care: $1,096,152, up from $737,086 in the third quarter of 2015.

Lower Umpqua Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $322,912, up from $40,670 in the third quarter of 2015.
  • Revenue sources: 4.87% self pay, 24.17% commercial insurance, 15.73% Medicaid, 55.22% Medicare.
  • Charity care: $30,762, down from $31,435 in the third quarter of 2015.

Mid-Columbia Medical Center, third quarter 2016 snapshot:

  • Total margin, or profit: $1,271,267, up from negative $38,195 in the third quarter of 2015.
  • Revenue sources: 1.78% self pay, 47.35% commercial insurance, 14.83% Medicaid, 36.04% Medicare.
  • Charity care: $558,831, down from $1,442,800 in the third quarter of 2015.

PeaceHealth Cottage Grove, third quarter 2016 snapshot:

  • Total margin, or profit: $89,396, up from negative $1,519,540 in the third quarter of 2015.
  • Revenue sources: 3.93% self pay, 20.31% commercial insurance, 22.24% Medicaid, 53.51% Medicare.
  • Charity care: $87,926, up from $75,256 in the third quarter of 2015.

PeaceHealth Peace Harbor, third quarter 2016 snapshot:

  • Total margin, or profit: $709,255, up from $34,774 in the third quarter of 2015.
  • Revenue sources: 2.43% self pay, 21.70% commercial insurance, 16.99% Medicaid, 58.89% Medicare.
  • Charity care: $220,899, up from $212,725 in the third quarter of 2015.

Pioneer Memorial Heppner, third quarter 2016 snapshot:

  • Total margin, or profit: negative $100,292, down from negative $17,937 in the third quarter of 2015.
  • Revenue sources: 7.23% self pay, 30.92% commercial insurance, 15.52% Medicaid, 46.33% Medicare.
  • Charity care: $15,013, down from $29,385 in the third quarter of 2015.

Providence Hood River Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: negative $1,678,495, down from negative $1,069,154 in the third quarter of 2015.
  • Revenue sources: 3.15% self pay, 52.06% commercial insurance, 14.54% Medicaid, 30.24% Medicare.
  • Charity care: $606,827, down from $618,861 in the third quarter of 2015.

Providence Newberg Medical Center, third quarter 2016 snapshot:

  • Total margin, or profit: $1,455,709, down from $2,832,790 in the third quarter of 2015.
  • Revenue sources: 3.29% self pay, 58.13% commercial insurance, 15.85% Medicaid, 22.73% Medicare.
  • Charity care: $984,983, down from $1,195,709 in the third quarter of 2015.

Providence Seaside Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: negative $1,386,457, down from negative $325,839 in the third quarter of 2015.
  • Revenue sources: 2.53% self pay, 38.29% commercial insurance, 17.14% Medicaid, 42.04% Medicare.
  • Charity care: $216,613, down from $612,458 in the third quarter of 2015.

Samaritan Lebanon Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $2,161,652, up from $1,325,450 in the third quarter of 2015.
  • Revenue sources: 3.73% self pay, 40.01% commercial insurance, 22.24% Medicaid, 34.02% Medicare.
  • Charity care: $1,195,093, up from $763,640 in the third quarter of 2015.

Samaritan North Lincoln Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $1,434,416, up from $486,964 in the third quarter of 2015.
  • Revenue sources: 2.63% self pay, 36.11% commercial insurance, 19.97% Medicaid, 41.29% Medicare.
  • Charity care: $631,604, up from $330,701 in the third quarter of 2015.

Samaritan Pacific Community Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $1,249,231, up from $1,099,780 in the third quarter of 2015.
  • Revenue sources: 4.06% self pay, 38.29% commercial insurance, 19.46% Medicaid, 38.19% Medicare.
  • Charity care: $988,762, up from $525,094 in the third quarter of 2015.

Santiam Memorial Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $706,346, up from $519,479 in the third quarter of 2015.
  • Revenue sources: 7.75% self pay, 46.89% commercial insurance, 15.78% Medicaid, 29.58% Medicare.
  • Charity care: $129,908, up from $99,812 in the third quarter of 2015.

Southern Coos Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: negative $10,859, down from $151,077 in the third quarter of 2015.
  • Revenue sources: 2.60% self pay, 27.88% commercial insurance, 12.04% Medicaid, 57.48% Medicare.
  • Charity care: $4,114, down from $23,136 in the third quarter of 2015.

St Alphonsus Medical Center Baker City, third quarter 2016 snapshot:

  • Total margin, or profit: negative $56,032, up from negative $218,600 in the third quarter of 2015.
  • Revenue sources: 2.29% self pay, 35.68% commercial insurance, 25.74% Medicaid, 36.29% Medicare.
  • Charity care: $123,884, down from $144,262 in the third quarter of 2015.

St Alphonsus Medical Center Ontario, third quarter 2016 snapshot:

  • Total margin, or profit: $1,451,722, up from negative $1,179,115 in the third quarter of 2015.
  • Revenue sources: 6.60% self pay, 41.28% commercial insurance, 20.92% Medicaid, 31.21% Medicare.
  • Charity care: $909,345, up from $723,376 in the third quarter of 2015.

St Anthony Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $4,803,327, up from $797,166 in the third quarter of 2015.
  • Revenue sources: 2.60% self pay, 64.41% commercial insurance, 11.14% Medicaid, 21.85% Medicare.
  • Charity care: $368,544, up from -$16,235 in the third quarter of 2015.

St Charles - Madras, third quarter 2016 snapshot:

  • Total margin, or profit: negative $145,199, down from $912,198 in the third quarter of 2015.
  • Revenue sources: 2.28% self pay, 32.24% commercial insurance, 34.14% Medicaid, 31.34% Medicare.
  • Charity care: $112,965, down from $137,089 in the third quarter of 2015.

St Charles - Prineville, third quarter 2016 snapshot:

  • Total margin, or profit: $785,090, down from $2,182,255 in the third quarter of 2015.
  • Revenue sources: 2.39% self pay, 30.04% commercial insurance, 20.20% Medicaid, 47.36% Medicare.
  • Charity care: $149,927, down from $200,824 in the third quarter of 2015.

St Charles - Redmond, third quarter 2016 snapshot:

  • Total margin, or profit: $1,711,074, down from $3,582,651 in the third quarter of 2015.
  • Revenue sources: 3.86% self pay, 43.22% commercial insurance, 20.20% Medicaid, 32.72% Medicare.
  • Charity care: $469,847, down from $480,868 in the third quarter of 2015.

Tillamook County General Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $2,114,053, up from $1,400,965 in the third quarter of 2015.
  • Revenue sources: 6.01% self pay, 27.10% commercial insurance, 20.35% Medicaid, 46.55% Medicare.
  • Charity care: $535,046, down from $1,044,739 in the third quarter of 2015.

Wallowa Memorial Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: negative $82,107, down from $438,156 in the third quarter of 2015.
  • Revenue sources: 4.30% self pay, 32.81% commercial insurance, 14.26% Medicaid, 48.63% Medicare.
  • Charity care: $35,843, down from $48,419 in the third quarter of 2015.

West Valley Hospital, third quarter 2016 snapshot:

  • Total margin, or profit: $316,221, down from $1,177,579 in the third quarter of 2015.
  • Revenue sources: 5.18% self pay, 46.12% commercial insurance, 15.58% Medicaid, 33.11% Medicare.
  • Charity care: $196,068, up from $190,720 in the third quarter of 2015.

Reach Courtney Sherwood at [email protected].

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