September 24, 2010, By Rebecca Layne
Is it not time for the local media to start stating "regional community" for Valley Health since they serve many counties outside of Winchester and Frederick County. VHS serves 18 counties to be exact.
The charity care and bad debt are isolated benefits to those individuals in need. The programmatic community benefit has an affect on every individual within these regional communities.
The programmatic community benefit (community health improvement & community benefit operations; health professions education; subsidized health services; research; cash and in-kind donations) amounts for years 2009 back to 2005 are 7.1, 7.6, 1.3, 1.7 and 2.9 million respectively.
Wonder why Mr. Whitworth Jr. did not share nor the community benefit chart display the excess of revenue over expenses figures for 2005-2009? To be more precise, profit/loss figures.
Valley Health System's five year profit total for years 2004-2008 was a little over $218.6 million.
Valley Health’s community benefit report information for years 2005-2007 was taken from the pamphlet mailer.
2001 - $11.8 million (per Quad State Biz Journal)
2005 - $54,346,679 (per IRS990)
2006 - $57,422,678 (per IRS990)
2007 - $66,617,961 (per IRS990)
Kent said the goal was to reach 5,000 members in three years, but it has moved beyond that. “We hit that number in a year,” she said, noting that the center now has 5,800 members.
Diem sent WMC a letter stating that its marketing efforts must cease because they violate terms set for buildings in the Medical Center zone. Private health clubs are allowed in the zone, but they cannot be marketed publicly.
The zone's definition - including the prohibition on public marketing - was written and submitted on WMC's behalf in 1989.
Butler and hospital officials and board members argued before the BZA that "personal services" best describes the use of the wellness center, a use that allows public marketing.
The BZA quickly rejected that argument, but did not vote to make the wellness center immediately cease its marketing campaigns. Instead, it gave WMC four months to seek an amendment to the zoning code that would enable the center to be marketed publicly.
Information from September 8th WincStar article:
The city zoning ordinance states that recreational facilities and private health clubs or sports-medicine clinics are permitted in the Medical Center District. However, the ordinance includes a provision that the facilities cannot be "marketed to the public-at-large."
Ironically, the restriction was included in an amendment written on behalf of WMC in 1989, and passed by the City Council in 1990.
After reading quotes and statement from the Quad State Business Journal article back in May of 2006, it is safe to say that VHS’s projections were somewhat conservative:
Valley Health is projecting the wellness center business will break even in its second year, and after the third year will throw off cash flow of almost $1.3 million. Funding the cost of the center from Valley Health internal resources means there is no requirement for debt service.
"If it [wellness center] is such a big money maker, others would have come into the market."