|
Blough: Hospital is ‘economic engine' for community |
|
|
|
Local Content -
Local News
|
|
Written by Mike Ishman
|
|
Friday, 26 June 2009 |
PUNXSUTAWNEY — The Punxsutawney Area Hospital not only helps save lives; it is also a large part of the local economy, according to its chief executive officer.
As the featured speaker of this month's "Chamber Chat," hospital CEO Dan Blough, described how the hospital adds to the community economically.
Blough focused on a central statement: Punxsutawney Area Hospital, along with other hospitals in the Commonwealth, is not only important to residents' health, but it is also important to the region's economic health.
"We do a lot more than provide healthcare," he said. "We are an economic engine (for the community)."
According to Blough, the hospital annually contributes more than $47.5 million to the region, as well as more than 300 jobs, factoring in the hospital's spending as well the ripple effect on the economy.
In Pennsylvania as a whole, nearly 625,000 citizens depend on hospitals for their jobs, whether it is direct employment or ripple effect. This equates to roughly one in nine jobs.
Hospitals and health systems provide $34 billion in direct spending and an additional $50 billion in ripple effect money to the state's economy.
The current economic downturn has affected PAH in several ways, causing the hospital to refinance funds spent to build the West Wing.
Fewer people have been going to hospitals statewide, and when they do receive treatment, they cannot or will not pay their bills, he siad.
This money caused the hospital to take on $2.3 million in bad debt and charity care in a recent year. The same figure was $1.8 million in 2006.
Statewide, the figure has risen from $604 million in 2006 to $678 million in 2007.
"Unlike other businesses, we can't pick healthcare up, load it into in a truck and take it back," Blough said, adding that if the hospital could cut the figure in half, "the difference would be like night and day."
Blough said one of the features that sets the hospital apart from other local small-town hospitals is the obstetrics — or maternity — program.
"The program is costing us a lot of money," he said, although he noted that the hospital feels it is a vital part of the community. Without it, patients would need to drive to Indiana or a different hospital to receive care.
"If we lose (Obstetrics) funding, there will be tough business decisions to make," Blough said.
During a Q&A session, Blough said that the healthcare system has changed dramatically in the past half-century. New mothers would spend six days in a hospital following childbirth in the 50s and 60s. Mothers typically spend two days in a hospital in modern times.
Outpatient care accounts for 70 percent of the hospital's business.
With the economy in the state it is in, people are making less scheduled appointments and are relying on emergency services instead.
According to the Hospital & Healthcare Association of Pennsylvania (HAP), 53 percent of hospitals report a moderate to significant decrease in admissions as well as elective procedures. At the same time, HAP reports 20 percent of hospitals are reporting increases in emergency department visits and 21 percent are reporting an increase in behavioral health care cases.
The current versions of the proposed state budget — including Gov. Ed Rendell's and Congress' — both make significant cuts to the state's Medicaid and Medicare budget.
These cuts would impact the healthcare system greatly and put further burden on the hospitals, which must offer competitive salaries and benefits to prospective doctors.
"You can't have a good hospital without good physicians," Blough said. "You don't get good physicians unless you go at risk for their compensation."
He said he's hopeful that the healthcare system will rebound.
"No matter what your political persuasion is, something is going to happen to healthcare at the federal or state level," he said.
The next "Chamber Chat" will take place in July on a date and location to be determined.
|
|
Last Updated ( Saturday, 27 June 2009 )
|
