Valley Health has made epic strides in Excess of Revenue (Profits) since 2001

http://www.valleyhealthlink.com/

Wanted to share so the local community can be more informed on Valley Health's financial success while providing quality care to the entire regional community. 

There was an editorial featured in The Winchester Star (copy is at the end of this post) on January  17, 2009 about a woman's husband stay in the hospital at Winchester Medical Center. Mrs. Luttrell's perception is the nurses at Valley Health are understaffed along with being under-compensated.

While trying to get a better grasp on Valley Health's excess of revenue (profits) since 2001.  The article below gives highlights of the 383% increase ($45.3million) excess of revenue (profits)  for The Winchester Medical Center from 2001 to 2005. Still having much difficulty in obtaining these exact figures for years 2006, 2007 and 2008 for the entire organization of VHS.  The VHS structure has been one of the most difficult that we've ever seen in trying to get the overall organization excess of revenue (profits) for years 2001 to the present day as we have not been anywhere close of being successful in accomplishing such task but our sources within the VHS network are working hard for The Pibbster's Pub to keep the citizenry informed.

Several e-mail requests to Valley Health officials over the last month have went unanswered as of today, October 15, 2009.   The statement from the "NONPROFIT PARADOX" article from the Winchester Star, January 10, 2009 stated the following about their conservative projections for 2009:

For 2009, Valley Health expects the retail price (gross revenue) of all of its services to be $1.1 billion.

After subtracting insurance, Medicare, Medicaid, and charity care, it should earn a net revenue of $693 million, with expenses of $659 million.

That leaves many wondering what Valley Health officials do with the $34 million left over. 

For a few Virginia facilities alone, please review these impressive profits below for FY-2007.  These numbers were obtained from Virginia Health Information, Numbers to Knowledge:

Excess of Revenue
$4,681,417	Warren Mem'l	FY-12/31/07
$66,617,963	Winc Med'l Ctr	FY-12/31/07
$1,673,924	Surgi-Center	FY-12/31/07
$1,933,193	Shenandoah Mem'l	FY-12/31/07
$332,680	Page Mem'l	FY-9/30/07
$75,239,177	Total Excess of Revenue (Profits) for 2007

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Winchester Medical Center Has Very Healthy Finances
Quad - State Business Journal
October 1, 2006
By Peter Heerwager
(brief highlights of the article)

Winchester Medical Center has grown its profits-known as excess revenues over expenses in the non-profit world of health care-from $11.8 million in 2001 to $57.1 million in 2005.

To put it in perspective, the hospital's 2005 profits were more than twice those of the region's six other hospitals taken together, excluding Jefferson Memorial Hospital, which lost money last year (see chart on page 15).

And Winchester Medical Center's operating margin of 14.9% was considerably higher than other hospital in the region.

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Valley Health's extensive regional community operation is detailed as follows as described in the pamphlet that Valley Health mailed out in the fall of 2008 titled, "The Big Picture - 2007 Benefit to the Community":



Valley Health Hospitals:
-    Winchester, VA ( Winchester Medical Center )
-    Front Royal, VA ( Warren Memorial Hospital )
-    Romney, WV ( Hampshire Memorial Hospital )
-    Woodstock, VA ( Shenandoah Memorial Hospital )

Valley Health Premier Affiliate Hospitals:
-    Petersburg, WV ( Grant Memorial Hospital )
-    Luray, VA ( Page Memorial Hospital )
-    Keyser, WV ( Potomac Valley Hospital )

Valley Health Managed Hospital:
-    Berkeley Springs, WV ( War Memorial Hospital )
     (VH just announced $2.75million purchase 12/15/08)

Valley Health other revenue generating services:
-    Winchester, VA ( Surgi-Center of Winchester )
-    Winchester, VA ( Urgent Care Center )
-    Martinsburg, WV ( Gateway Home Care )
-    Winchester, VA ( Valley Home Care )
-    Front Royal, VA ( Valley Home Care )
-    Woodstock, VA ( Valley Home Care )
-    Winchester, VA ( Valley Pharmacy )
-    Winchester, VA ( Valley Medical Transport )
-    Keyser, WV ( Valley Medical Transport )
-    Martinsburg, WV ( Valley Medical Transport )
-    Petersburg, WV ( Valley Medical Transport )
-    Cumberland, MD ( Valley Medical Transport )
-    Hagerstown, MD ( Mid-Maryland Medical Transport )
-    Front Royal, VA ( Lynn Care Center )
-    Stephens City, VA ( Quick Care )
-    Woodstock, VA ( ShenSpa )
-    Winchester, VA ( Piedmont Medical Laboratory )
-    Winchester, VA ( Wellspring )
-    Winchester, VA ( Wellness & Fitness Center )
-    Winchester, VA ( Winchester Imaging Center )
-    Winchester, VA ( Winchester Rehabilitation Center )


Valley Health's Regional city/town location of facilities as of fall 2008:

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Short of nurses

I am writing this letter concerning the Jan. 10 article in The Star headlined “Nonprofit paradox.” I understand the “pie” Valley Health community benefit. I understand the hospital is a nonprofit hospital. But the Winchester Medical Center is very short of nurses.

Several times when my husband has been a patient, I overhear in the hallways, “We are short this shift.” There has been one nurse at a time on a floor to handle 12 rooms. That is one reason, as a care-giver, I stay 24/7.

The point I am getting to is the CEO and administrators whose salaries were posted in the paper could take a lesser pay and see that the money goes to the nursing income. This would make it more inviting to the nursing community to nurse there.

I know of several nurses who are leaving the area because of the pay. These people who get these big salaries have only a medical back ground in books. They are not like the nurses who take care of patients to see they are well. They are short-paid!

I think this “nonprofit” hospital needs to reline its incomes to help the community get more nurses and pay them well enough to want to stay here.

I am not saying my husband did not get good care, because he did. But I was with him 24/7 during his stay. I welcome any response to this letter. If I am wrong, please do not hesitate to answer.

FRANCES LUTTRELL Frederick County
January 17, 2009
Winchester Star's Letter to Editor



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For the record, there has been no rebuttal featured in the Winchester Star toward Mrs. Luttrell's commentary since it appeared in print on January 17, 2009.