Owensboro Health tells Daviess County court it expanded services, raised wages and broadened charity aid

Philip, a representative of Owensboro Health, told the Daviess County Fiscal Court that the health system expanded services across its 14-county service area and made changes intended to improve access, quality and financial assistance for patients. "Our value equation consists of providing the best possible care at the lowest cost to the most people possible," Philip said during his presentation.

The hospital reported growth in both staffing and outpatient visits. Owensboro Health said it employed 4,088 people systemwide and recorded a 32 percent year-over-year increase in outpatient visits while inpatient volume rose about 4 percent. The system added 33 providers, expanded ambulatory locations and opened Owensboro Health Muhlenberg Community Hospital as a satellite facility, the presenter said.

Why this matters: Owensboro Health is one of the region's largest employers and a primary health provider; the court heard the report because the system's operations affect county residents' access to care and the local economy.

Owensboro Health pointed to several quality and capability milestones. The hospital said it achieved Level 3 trauma status and a Level 3 neonatal intensive care designation, and named national recognitions from Becker's Hospital Review and U.S. News & World Report for specific services. Philip also described a clinically integrated network and work to expand MyChart adoption (more than 26,700 active users reported) to improve patient access to records and care coordination.

On wages and workforce development, Philip said the system increased wages year over year by $26 million and set a minimum hospital wage of $9.50. Owensboro Health also reported investing $1.2 million in employee education reimbursement; the presenter said 83 nurses were pursuing bachelor's degrees and 22 nurses were in master's programs with reimbursement support.

Philip summarized the system's finances: approximately $500 million in net operating revenue on roughly $1.3 billion in gross revenue, with an operating metric (EBITDA) of about $71 million and a reported net income of $39,039,000. He said an economic model prepared by a University of Louisville researcher estimated the hospital generated about $18.2 million in state and local tax revenue and roughly $129 million in local economic activity in 2013 (the speaker said the latter figure reflects hospital purchases and employee spending and that systemwide figures would be larger).

On uncompensated care and charity assistance, Philip said the hospital has revised its charity-assistance policy to provide a 100 percent write-off for families at or below 225 percent of the federal poverty level and a sliding scale up to 375 percent (a 70 percent write-off at that band). He told the court that high-deductible insurance plans have increased patients' out-of-pocket burdens and that Medicaid reimbursements remain below cost; he said Medicaid paid about 57 cents on the dollar for care of Medicaid patients during the past year.

The presenter noted community programs the Owensboro Health Foundation supported (about 10,145 individuals served last year by foundation-supported services including mammogram assistance) and said the health park membership assistance program helped 940 people access facility services. He asked the court and the public to recognize the hospital's role as an employer and regional health provider.

Several commissioners thanked the presenter for the report and for the system's growth and community investments. The court did not take formal action on the report; it served as an informational presentation and question-and-answer opportunity.

Ending: The court acknowledged Owensboro Health's presentation and moved to the remainder of the agenda.