Headline Article Debunks Sutter's Prior "Gloom and Doom" Forecast
For
those who missed the 10/1/15 headline article in The Del Norte
Triplicate, and were unable to attend yesterday's Town Hall meeting,
here is "the rest of the story" on Sutter's financial claims . . . .
Background:
In late 2013, Sutter executives told us that downsizing Sutter Coast
Hospital to Critical Access status was necessary to stem Sutter Coast's
financial losses. Former hospital CEO Linda Horn publicly announced the
hospital had not had a positive operating margin since 2008. (Ms. Horn's
statement is contradicted by Sutter's own data, which shows operating
income of $7 million for years 2009 plus 2010.)
The
Camden Group (a consulting firm paid by Sutter) and Linda Horn both
projected heavy losses at Sutter Coast through 2018. Those dire
predictions were used to justify removing half of the hospital's beds
from service, which hospital officials conceded would necessitate an
increase in mandatory patient transfers (due to the 25 acute care bed
cap imposed by Critical Access). But in the face of the projected
losses, Critical Access would allow Sutter Coast to triple its payments
from Medicare. (source: Linda Horn, NewsPlus," 1/17/14.) Thus, the
downsizing was portrayed as a necessary trade off in the face of
predictions of steep losses ahead.
Fast forward to 2014: The
Del Norte Triplicate's
headline article 10/1/15 reported Sutter Coast Hospital's profits were
$10.8 million in 2014, and according to Sutter Coast CEO Mitch Hanna,
expected to be roughly $11.9 million in 2015
(without Critical Access). (
source: http://www.triplicate.com/News/Local-News/108M-profit-in-2014)
Sutter's
gloomy 2013 forecasts turned into huge profits the next year. These
profits are not surprising--Sutter Health is nationally renowned for its
high prices and profiteering--see the following New York Times article,
which discusses Sutter Health:
Critical Access news for 2015:
The Sutter Coast Board of Directors, noting an influx of patients
seeking treatment, voted to hold off converting Sutter Coast to Critical
Access, but hospital officials "declined to share the census numbers
for 2015 that prompted reconsideration of the Critical Access
application." (
source:
http://www.triplicate.com/News/Local-News/Critical-Access-app-on-hold)
Hospital CEO Mitch Hanna later confirmed Sutter Coast's Critical Access application has not been withdrawn,
so the hospital Board keeps open the option of Critical Access at
Sutter Coast, behind the veil of secrecy of Sutter Coast's closed Board
room.
Why Is This Important to You? Because
if Sutter Coast downsizes to Critical Access, there will be 50% fewer
available beds, more mandatory emergency patient transfers, plus, higher
out of pocket costs and higher secondary insurance premiums for
Medicare patients. (sources: Office of Inspector General Report Oct., 2014, and Kaiser Health News, 10/7/14)
How you can help address Sutter's high prices, conflicting statements, and closed Board rooms:
1. Write The Del Norte Triplicate, letters to the editor, 312 H. St., Crescent City, CA 95531, or by email at
letters@triplicate.com Be sure to include your phone number, which is not published.
2. Contact me at
drgjduncan@yahoo.com if you would like more information, or if you have any information on hospital charges or patient transfers.
3.
Join the 4,000 others who have signed the petition at my office,
opposing Sutter's plans to move ownership of Sutter Coast Hospital out
of our county.
Thank you all for your continued support,
Gregory J. Duncan, M.D.
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