LVHN Annual Community Benefit Reaches Record
Leadership cites not-for-profit’s financial strength amid increasing government reimbursement challenges
Lehigh Valley, Pa. (Nov. 3, 2008) - Lehigh Valley Health Network (LVHN) today announced a record community benefit of $146 million in the fiscal year that ended June 30, 2008, an increase of $18.9 million or 15 percent compared to 2007.
The community benefit includes:
- $101.4 million in direct patient care, the largest portion of LVHN's community benefit
- $32.8 million in physician, nursing and patient education and research
- $7.6 million for community partnerships and support for schools and community organizations, including $1.4 million in real estate taxes paid on not-for-profit owned and leased property and payments and services to municipalities and school districts in our region.
- $4.2 million for community health education and prevention.
The total represents the community benefit of Lehigh Valley Hospital (LVH), Lehigh Valley Hospital-Muhlenberg (LVH-Muhlenberg), Lehigh Valley Physician Group and Lehigh Valley Health Services. LVHN also donates space, equipment and the time and expertise of physicians and staff.
LVHN contributes to the Lehigh Valley's economic growth by providing over 9,500 jobs, which result in income tax payments to government.
LVHN also announced total revenues for fiscal year 2008 of $1.193 billion and total expenses of $1.152 billion, for a patient services net margin of $40.7 million, or 3.4 percent of total revenue. LVHN's patient services net margin for fiscal year 2007 (year-ended June 30, 2007) was $65.5 million, or 6.0 percent of total revenues. Over the past ten years the average patient services net margin has been 4.0 percent or $35.6 million annually.
"Lehigh Valley Health Network remains financially strong," said Elliot J. Sussman, M.D., LVHN's president and CEO. At the same time he stressed that health care experts have determined a 5 percent margin is proper to be able to reinvest in the necessary improvements to continue to care for the community. "Our biggest challenge in the future will be to stay strong financially amid changes that limit health care reimbursement from government payers like Medicare and Medicaid and private insurers."
In fiscal year 2008, LVHN cared for more than 61,000 patients admitted to the hospital, an 11 percent increase over the previous year. Nearly 144,000 patients sought emergency care, also up 11 percent, and another 130,600 were seen in the clinic practices, a 2 percent increase. "As our community continues to grow, so does the need to provide quality and safe health care, as these numbers show," Sussman said. "That's why it is important for LVHN to remain financially strong in order to be able to address these growing needs now and in the future."
Sussman cited the opening of the new Kasych Family Pavilion in January, which added 182 private patient rooms to LVH-Cedar Crest, as well as the new Center for Advanced Health Care as ways LVHN is meeting these needs. He said by reinvesting its patient services net margin in people, technology and facilities LVHN is ensuring that patients receive the highest quality care in the safest possible environment.
The fiscal year 2008 margin will be reinvested in the community to pay for things such as:
- Completion of the expansion at LVH-Cedar Crest
- Replacement of the 13-year-old pharmacy robot at LVH-Cedar Crest with an updated version for dispensing medication to ensure patient safety
- Initiate installation of ceiling lifts in each patient room throughout the LVHN network hospitals for patient and staff safety
- Expansion of clinical exam space for the Center for Women's Medicine outpatient practices at LVH-17th and Chew to meet increased demand
According to Sussman, LVHN is working with more patients and their families to help them afford care based on income guidelines. The number of people filing for reduced cost-of-care applications in fiscal year 2008 increased by 32 percent to more than 5,600 at LVHN. "We are obligated to make sure everyone in our community gets the care they need regardless of their ability to pay," Sussman said. "We offer charity care policies that are both beneficial to those truly in need, and fiscally responsible."
Sussman also stressed a growing community interest in LVH and LVH-Muhlenberg. He said the level of philanthropic support has increased considerably over the past five years averaging $14.9 million per year toward investment in technology, services, programs and facilities.
Based in Allentown and Bethlehem, Pa., Lehigh Valley Hospital and Health Network comprises Lehigh Valley Hospital-Cedar Crest & I-78, Lehigh Valley Hospital-17th & Chew, Lehigh Valley Hospital-Muhlenberg and Lehigh Valley Health Services, which includes home health, hospice, pharmacy and health management. Advanced regional resources at these non-profit hospitals include a Level I Trauma Center with added pediatric qualifications, as well as burn, kidney and pancreas transplant, perinatal/neonatal, cardiac, cancer care, and neurology and complex neurosurgery. LVHHN hospitals are designated national Magnet hospitals for excellence in nursing. Additional information is available at www.lvh.org.
This page last updated 11/4/08 11:21 AM
