Turn forThe Good
Jersey Shore Hospital ends fiscal year with "profit"
JERSEY SHORE, Saturday, July 14, 2001 - Jersey Shore Hospital appears to be turning the corner, working to balance patient care with the need to remain fiscally sound, its chief executive believes.
Amid a very competitive atmosphere, the hospital ended fiscal year 2001 on June 30 with "a profit margin," Lou Ditzel, chief executive officer, confirmed this week.
In fact, the hospital has been honored with the "Most Improved Operating Margin" among hospitals in the north-eastern division of Quorum Resources. The hospital is managed by Quorum Management Group, a subsidiary.
Moreover, the hospital was honored by the independent Joint Commission on Accreditation of Health-Care Organizations for achieving a score of 97. Based on a patient satisfaction survey, the score is indicative of the hospital's having met certain performance standards for high quality patient care. A not-for-profit organization, the Joint Commission evaluates and accredits nearly 19,000 health care organizations and programs in the United States.
Ditzel said the awards are just one example of the hospital's achievements. "The hospital has been operating at a very profitable level since last July, and it continues to grow," he said.
Ditzel declined to release the hospital's bottom-line profit figure for the fiscal year, saying the numbers must first be audited.
At length, Ditzel discussed Jersey Shore's "model year" in 2001, the failed merger bid, the hospital's future and some of its achievements over the past five years.
He referred to collaboration with other hospitals and successful physician recruitment as among the key elements of Jersey Shore's strength.
Meanwhile, he said any movement toward an affiliation between Jersey Shore and Lock Haven Hospital appears to be history.
The hospital recently sent a letter to Lock Haven officials, explaining that the door remains open to any possible merger of the two organizations.
"They were reminded that we never slammed the door," said Ditzel, adding that the Jersey Shore board believes the letter was necessary. Jersey Shore did not submit a formal merger proposal to Lock haven, but the two have talked for a number of years.
The sticking point - according to information from both sides - is Jersey Shore's proposal to have a medical center built halfway between the two institutions to serve patients and create more modern health-care facilities.
Lock Haven recently sent out bids to seven different companies in attempt to solicit a buy-out offer. Of the seven, Community Health Systems, Inc. of Brentwood, Tenn., has shown the strongest interest, responding with a $17 million offer. Four others receiving bids - Geisinger Health System, Susquehanna Health System, Providence Health Care and Health Management Associates - responded to Lock Haven with letters on interest. Tennet Health Care Company and Triad Hospitals received bids but did not respond.
Like Jersey Shore, Lock Haven is managed by Quorum Management Group but under a separate arrangement. Its contract expires this year.
Lock Haven Board President Tom Davis responded to Jersey Shore's letter this pat week, making it clear they were not interested in any type of transaction with Jersey Shore that included the building of a new medical facility costing " approximately $20 million."
When asked if any deal between the hospitals will happen, Ditzel said, " It really doesn't sound like it."
Ditzel said hospital officials really never expected to receive a reply from Lock Haven either, and that's a shame considering what joining forces would have meant to the communities involved.
He said Lock Haven is a 150-bed hospital, but is really not "consuming health care" to that degree.
"We wish them the best. We really do," he s
Ditzel didn't rule out that Susquehanna Health System could become part of any deal involving Lock Haven. However, he noted that serious anti-trust issues would certainly have to be considered.
Companies are regulated by the state with regard to how many hospitals within their network can operate in a region. Susquehanna's operations include Williamsport, Divine and Muncy Valley hospitals.
Another aspect to consider in a Susquehanna affiliation, he said, is that some of the same services are offered at both hospitals, creating a duplication of services.
Ditzel spoke often of collaboration- the kind that occurs behind the scenes and primarily involves physicians caring for patients.
He noted that Susquehanna and Geisinger physicians rent space in Jersey Shore Hospital, and it's such collaboration and sharing of services that serve the hospital well.
Good relationships have been forged not only with Susquehanna, but also with Soldiers and Sailors and Bucktail hospitals. He referred, for example, to radiology services provided by Jersey Shore to Bucktail. And Ditzel noted that Lock Haven and Jersey Shore have formed similar agreements.
Interestingly enough, Ditzel said he sees Jersey Shore Hospital's presence in McElhattan or somewhere nearby - sometime over the next five years. In talks between Jersey Shore and Lock Haven in recent years construction of a facility in McElhattan had been envisioned. He said by virtue of its geographical location between the two hospitals, it only makes sense that area could figure into some type of plan.
There's no truth to the rumor that Jersey Shore has been ordered by the state or any regulating agency to renovate building infrastructure to get it up to proper standards, according to Ditzel.
He admits the hospital is an aging facility originally built for in-patient care and services.
Now, it's primarily an outpatient center, and officials have done what's feasible to bring the buildings up to date.
Among the hospital's more glaring problems is its lack of handicapped accessible features, but Ditzel said his team is on top of keeping the facility as user-friendly as possible.
Ditzel said that, in recent times, the hospital has met the challenge of recruiting doctors to its rural campus. In fact, he refers to physician recruitment as one of the hospital's strongest endeavors.
" It has had the greatest positive impact," he said.
Just within the past couple of year, he said the hospital saw more than a handful of local physicians retire, creating a huge gap in care.
"The hospital worked hard to recruit physicians- providing incentives while selling the region's quality of life - and has been successful," Ditzel said.
Grant funding and evolving technology will continue to have a say in how the hospital operates in coming years, according to Ditzel.
Not to be forgotten either are the hospital's employees.
"Jersey Shore has a great team. That's always been a forte of Jersey Shore's," he said.
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