Valley Health / WVU-H discord on War Mem'l Hospital will be resolved in late January 2010?

Hearing focused on size & services of new hospital
by Kate Shunney - 10/21/2009
The Morgan Messenger

Officials from Valley Health Systems and WVU Hospitals rolled out their competing visions of a new War Memorial Hospital when they and their lawyers appeared before the state’s Health Care Authority in Charleston last Tuesday.

That body will determine if Morgan County can sell its license to operate War Memorial Hospital to Valley Health, and if Valley Health can proceed with their plans to build a new $30 million hospital in Berkeley Springs.

Their decision is expected in January 2010 at the earliest.

All those involved in last week’s public hearing told The Morgan Messenger they felt the process was fair and thorough, and each of the participants got a chance to raise their key issues before the health care board.

Hearing was “routine”

Tom Jones, president and CEO of West Virginia United Health Systems, said the certificate of need hearing was “routine” and short compared to some he has attended.

His testimony on behalf of WVU Hospitals focused on three main issues: the size of the proposed hospital, the financial viability of the facility and the fairness of the bidding process.

“Although we had concerns about the certificate of need that was presented by Valley Health, we all agreed there is a need for a new hospital,” Jones said on Monday.

“The important thing is to recognize the needs of Morgan County for a hospital and, one way or another, get to that end,” he said.

If the current proposal doesn’t get the okay from the Health Care Authority, Jones said West Virginia University Hospitals would be interested in making a hospital proposal to Morgan County officials.

“If there was a request for proposal that was put out that would allow us to respond in a way that was appropriate, we’d do that,” Jones said.

He emphasized that his company has already spent $80,000 and many man-hours studying Morgan County’s health needs and drafting proposals for a new War Memorial Hospital.

“If the decision goes the other way, we’ll get on with life,” Jones said.

Despite the fact that the public hearing was prompted by Jefferson Memorial Hospital and City Hospital claiming status as “affected parties” in War Memorial’s future plans, officials from those hospitals didn’t testify at the October 6 hearing.

Jones is the head of the health care system that oversees West Virginia University’s hospitals in Fairmont, Morgantown, Martinsburg and Jefferson County.

No new issues

War Memorial Hospital President Neil McLaughlin said questions raised at the hearing were ones he has anticipated.

“We’ve been so over and under this project, it would have been difficult to come up with a question we didn’t expect,” he said.

McLaughlin felt there were three major disagreements about a hospital plan.

He said West Virginia University Hospitals questioned the need for 25 beds instead of 15 beds. He said they argued a new hospital would need only one, not two operating rooms as planned. WVU Hospitals officials also questioned the viability of having a nursing home in the new facility.

McLaughlin agreed that the nursing home component of the hospital would not be the most profitable part of the facility, but said it is key to the mission of War Memorial Hospital.

“People wouldn’t be waiting on a waiting list for the nursing home except this is where people want to be if they have to be in a nursing home,” he said.

McLaughlin said downsizing the hospital to 15 beds would be like building a two-bedroom home for a family with twins on the way.

“We’d have to really consider whether moving into a 15-bed facility would work, whether it’s a project we’d be willing to finance and build,” he said.

In order for War Memorial Hospital to retain its legal status as a critical access hospital, a new facility would have to maintain 75% of the current services, retain 75% of its employees and serve 75% of its current clients, said McLaughlin.

Cutting rooms, hospital size or doing away with the nursing home component would jeopardize that critical access status, he said.

McLaughlin said WVU Hospitals conceded that Morgan County needs a new hospital, but they seemed to suggest they could offer a better alternative to the Valley Health proposal already accepted by the Morgan County Commissioners.

In the end, the Health Care Authority must evaluate Valley Health’s plans on two key features — whether it meets the State Health Plan and is financially feasible, McLaughlin said.

Support was impressive

County Commission President Brenda Hutchinson, who also testified at the hearing, said officials there were impressed by the show of support for a new War Memorial Hospital.

“I think it went very well. I have confidence they’ll weigh the evidence and make a fair decision,” she said of the Health Care Authority.

Will Valley Health become a monopoly similar to Carilion of the Roanoke Valley

To finally bring a conclusion to this informative mission after what I have learned of what is going on down in the Roanoke Valley with Carilion, one can easily develop a similar perception of what is taking place with the rapid growth of Valley Health in the Shenandoah Valley/surrounding regional area.  That why it’s important that the citizenry of the Shenandoah Valley be more informed on Valley Health.


It’s well known that Valley Health’s mission is to have a large presence in the regional area.  Valley Health has not hidden that fact with the $178,000,000 Winchester campus expansion, while continuing to purchase much smaller regional hospitals that appear to have a standard price tag of $30 million for a new facility.


Valley Health’s plan to build a new $30 million hospital in Morgan County, WV  to replace War Memorial Hospital in Berkeley Springs is currently getting resistance from West Virginia University Hospital officials.

WVUH-East President Albert Pilkington has a differing opinion of the events. He has been in this position since January 2009.

"We asked for the hearing because we had serious concerns about the scope of the project, and who put the bid package together," he said. "We felt the size hospital asked for in the bidding package did not fit with the state health plan or our own analysis, and we had additional questions whether we could bid on a project or specs that were designed by an unknown party."

Pilkington said WVUH-East wants to ensure a fair and independent bidding process.

WVU-H East offers more than ‘bus stop’
By Albert Pilkington III, president and CEO, WVU Hospitals-East, Martinsburg

Valley Health has spent a lot of money and time to develop a PR campaign aimed at discrediting our interest in providing health care for the citizens of Morgan County. Beyond all the rhetoric, I ask you to simply consider one basic concept. Do you want a hospital in Berkeley Springs or a medical bus stop for Valley Health?

Ultimately, that is the real question. Our approach will be the same as it has been in Jefferson County in that we believe in building and growing services within the community as opposed to the Valley Health model of using small hospitals as a feeding system for the big hospital in Winchester, Va.

If you are satisfied with driving to Winchester for the majority of your medical needs as if Berkeley Springs were a suburb of Winchester, then we are not your best choice. On the other hand, if you are interested in the development of your own unique community with services provided locally, then that is the approach we offer for health care.

Truly, beyond all the PR and rhetoric, this is the only real question at hand as both companies will give you a new building.

Below are other articles that have appeared in the Martinsburg Journal over the last month and half and I do not recall reading anything about this protest in any of our local media outlets: The Winchester Star, TV3-Winchester or the NVDaily.

(Correction 10/20/09, found NVD article: WV hospital project challenged, WVU-East puts brakes on plans for New War Memorial),
(Correction 10/21/09, found WincStar article: Valley Health's plans for aging WV hospital to get hearing)

Hospital hearing set for Oct. 6
By Erienne Greene, Journal Staff Writer
Posted September 27, 2009
http://www.journal-news.net/page/content.detail/id/525721.html

 

Approval of hospital plans urged
A resolution is passed by Morgan panel
POSTED: September 25, 2009
http://www.journal-news.net/page/content.detail/id/525622.html

 
Delay in hospital construction upsets commissioners
By Tricia Lynn Strader / Special to The Journal
POSTED: September 21, 2009
http://www.journal-news.net/page/content.detail/id/525422.html

 

War Memorial construction delayed
WVU Hospitals files for hearing before panel
By Tricia Lynn Strader, Special to The Journal
POSTED: September 20, 2009
http://www.journal-news.net/page/content.detail/id/525387.html

Another grave concern is “The Lucrative Life of a Nonprofit Hospital” which was a feature by Wall Street Journal blog reporter Jacob Goldstein on August 28, 2008.  Valley Health’s “charges” appear to be competitive at the present moment, but for how long?

“The Lucrative Life of a Nonprofit Hospital”
Jacob Goldstein, WSJ blogger
August 28, 2008
http://blogs.wsj.com/health/2008/08/28/the-lucrative-life-of-a-nonprofit-hospital/

ROANOKE, Va. -- In 1989, the U.S. Department of Justice tried but failed to prevent a merger between nonprofit Carilion Health System and this former railroad town's other hospital. The merger, it warned in an unsuccessful antitrust lawsuit, would create a monopoly over medical care in the area.

Nearly two decades later, the cost of health care in the Roanoke Valley -- a region in southwestern Virginia with a population of 300,000 -- is soaring. Health-insurance rates in Roanoke have gone from being the lowest in the state to the highest.

Nonprofit medical centers are big business these days. Carilion Health System, in Virginia’s Roanoke Valley, had profits of more than $100 million last year, Carilion is Roanoke’s dominant health-care player, and it charges high prices for some procedures — $4,727 for a colonoscopy, which is four to 10 times what a local endoscopy center charges, the article says. The area now has some of the highest health-insurance costs in the state.

Critics say big medical centers like Carilion use near-monopoly power to charge high prices; Carilion says it needs to charge more for some procedures to subsidize other parts of its business, such as care for the uninsured. And the hospital says an HCA-owned hospital in a nearby town offers competition.

Carilion has recently started buying up local medical practices in an effort to move to a multispecialty-clinic model. The hospital CEO says this arrangement will cut down on fragmentation and improve care.

But the move has alienated hundreds of local docs, who circulated a petition and launched a Web site. Those who haven’t sold their practices to the hospital say they’ve seen their referrals plummet.

This "Nonprofit Hospitals Flex Pricing Power" is a MUST read and pay attention the epic profit increases from 2003 through 2007.  Do you remember reading about Valley Health's epic increase from 2001 through 2005?  Yes, it was an eye popping 383% increase for that time period as exact figures for 2006, 2007 and now upcoming 2008 has been an unsuccessful challenge to obtain.

Nonprofit Hospitals Flex Pricing Power
In Roanoke, VA, Carilion’s Fees Exceed Those of Competitors;
The $4,727 Colonoscopy
Thursday, August 28, 2008
http://webreprints.djreprints.com/2017630549095.pdf

Since Valley Health is a not-for-profit, why are not their financial records readily available for public inspection.  Makes you wonder, is Valley Health is trying to hide something?  For example, review Lehigh Valley out of Allentown, PA as their financials are very much unguarded for the public to review:

IRS Form 990:
http://www.lvhn.org/downloads/lvhfinal07.pdf

Financials and Annual Reports:
http://www.lvhn.org/aboutus/Annual_Report_Archive/2008_Report_to_the_Community/2008 Financial_and_Operational_Report%7C4523


 

Below is a very informative video of Frank Cotter speaking to Citizens for Responsible Health-care of the Roanoke Valley speaking out against Carilion.

We are all grateful that Valley Health provides quality care for our regional area but everyone should have much concern about their growth to become the regional authoritarian of medical care and hope more individuals within the regional area will be keeping an eye on them while asking reasonable questions.


In closing, let’s all hope that Valley Health of the Shenandoah Valley doesn’t become a monopoly that is the perception of what Carilion has done within the Roanoke Valley.

NONPROFIT PARADOX : Valley Health

Valley Health brings in millions of dollars tax-free,
but it also gives millions away
    By Jason Kane
    The Winchester Star
    January 12, 2009


    Winchester — Free medical care for some area residents costs big bucks for health-care systems such as Valley Health.

    Tens of millions of dollars, in fact, are given away each year by the nonprofit organization.

    “Our mission is to help the entire community, regardless of ability to pay,” said Michael Halseth, president and chief executive officer of the Winchester-based system that operates five hospitals in the Northern Shenandoah Valley.

    But with generous tax breaks from the city, state, and federal governments, many critics say nonprofit hospitals are receiving a terrific deal without providing enough give-backs to the communities they serve.

    In 2007 — the last year for which data were available — Valley Health spent more than $56 million on charity, bad debt, and uncompensated care, including community education, health screenings, and similar projects.

    Of that, $18.9 million went toward assisting those who couldn’t afford to pay for health services, $10.8 million was absorbed as a loss for caring for Medicaid patients, and $17.5 went toward bad-debt write-offs.

    “We try to work with folks,” said Craig Lewis, the organization’s chief financial officer. “Especially if people are going through struggling times, as they are now with the economy.”

    In exchange for their goodwill, nonprofit hospitals escape the vast majority of state and local income, property, and sales taxes — in addition to federal taxes. That can add up to hefty savings in growing markets such as Winchester.

    At the moment, no federal guidelines specify the percentage of charity care nonprofit hospitals must provide to their communities.

    Institutions such as Winchester Medical Center are simply expected to care for those who walk through their doors without the ability to pay.

    In effect, Valley Health will provide patients with free service — even complicated procedures such as open-heart surgery — if their income falls below 200 percent of the federal poverty guidelines. For a family of four, that’s roughly $40,000 per year.

    For individuals whose incomes fall between 201 and 300 percent of the federal poverty guidelines, the system offers discounts to its normal fees on a sliding scale.

    Lewis said this policy is fairly generous compared to other hospitals in the state. WMC ranks 14th out of 83 Virginia hospitals in the amount of charity dollars it provides. That number would be higher if the area had as many low-income families as central Richmond, for example, he said.

    “We could have a more liberal policy of writing off bills but not have as much charity care — percentage-wise — as other hospitals, simply because the demographics of our community don’t allow us the opportunity to take care of more people for free,” Lewis said.


    Fear of monopoly


    Between 2001 and 2006, the combined net income of the 50 largest nonprofit hospitals jumped nearly eight-fold — to $4.27 billion — according to a Wall Street Journal analysis of data from the American Hospital Directory.

    Under federal law, the revenues that remain at the end of a year for a nonprofit organization must be funneled back into the company to bolster programs, equipment, and facilities.

    Within Valley Health, that money rarely goes toward bringing down costs for patients, Halseth said.

    “We’ve already kept our prices within the lowest quartile in Virginia for years and years,” he said. “A lot of times we’re in the lowest 10 percent.”

    Rate increases over the past several years have been between 3 and 5 percent — set to keep pace with inflation.

    The primary concern that some people have with nonprofit regional systems such as Valley Health is that their tax breaks will allow them to purchase every health facility in the area, creating a monopoly and later driving up prices.

    Last year alone, the company acquired hospitals in Luray and Romney and Berkeley Springs in West Virginia.

    The organization now includes Winchester Medical Center, Warren Memorial Hospital in Front Royal, Shenandoah Memorial Hospital in Woodstock, Page Memorial Hospital in Luray, and Hampshire Memorial Hospital in Romney. It is awaiting permission from West Virginia authorities before officially beginning to operate War Memorial Hospital in Berkeley Springs.

    Valley Health also oversees the Winchester Rehabilitation Center; Valley Home Care of Winchester, Front Royal, and Woodstock; Urgent Care of Winchester; Quick Care of Stephens City; and Valley Pharmacy of Winchester.

    “I would say that fear [of monopoly prices] simply hasn’t been borne out in our history,” Lewis said. “Yes, it’s nice having our regional hospital and system base, but I don’t see us using it in an adverse way for the community.”


    A charge for reform


    Statewide, the amount of community benefit provided by Virginia’s tax-exempt hospitals exceeded the value of the exemptions by more than $195 million, according to the Virginia Hospital and Healthcare Association.

    But that number can be deceptive.

    “A lot of hospital systems across the country were putting in everything but the kitchen sink,” Lewis said.

    In September, the Government Accountability Office released a report concluding that significant variation existed in the types of activities nonprofit hospitals define as community benefit, as well as the ways hospitals measure the costs of these activities.

    Sen. Chuck Grassley, R-Iowa, has been spearheading a charge for reform, recently saying: “As long as there’s such uncertainty and inconsistency in the definition of community benefit, it’ll be impossible to gauge whether the public is getting a fair return for the billions of tax dollars that tax-exempt hospitals don’t pay.”

    This year, the Internal Revenue Service rolled out new 990 reporting forms for nonprofit hospitals that require them to report costs rather than charges, and restrict them from qualifying bad debt and Medicare shortfalls in their definition of community benefit.

    Grassley seemed partially satisfied, but pledged to continue pushing for minimum levels of charity care.

    “While the new IRS Form 990 will help, Congress may need to fill in the blanks since hospitals still get to choose how they calculate their costs,” he said.

    Part of Grassley’s worry is that hospitals — especially the nonprofit ones, due to their tax exemption — generate hundreds of millions of dollars and too often use their surplus funds unwisely.


    Where the money goes


    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.

    The company invests a portion of its surplus in stocks, bonds, and other assets.

    “We try to be good stewards of the money,” Lewis said. “We try to make sure we have a balanced portfolio, to diversify risks and provide optimal returns [often used for building campaigns].”

    A portion of the money is used to finance new facilities, such as the $17.1 million Wellness and Fitness Center on WMC’s Amherst Street campus or the upcoming $178 campus expansion, which will nearly double the size of the flagship hospital.

    Some funds go back into programs to provide flu shots, informational seminars, or resources for free medical clinics throughout the area.

    Lisa Zerull, a registered nurse who has been working for Valley Health for 19 years, helped the company to devise a number of successful community-based programs.

    Her ideas “don’t generate revenue but do generate community support,” she said.

    In 1993, for instance, Zerull helped to establish a group of nurses who visit the homes of frequent hospital visitors to help them with tasks such as medicine compliance, dietary changes, and exercise.

    By preventing health problems before they occurred, the hospital saved money on the patients’ monthly trips to the emergency room.

    “The program is still in existence, which speaks to its success,” Zerull said.

    And then there are the ventures which have been raising eyebrows.

    Among them: Valley Health recently opened ShenSpa — a branch of Shenandoah Memorial Hospital in Woodstock that offers manicures, pedicures, waxing, and facials.

    Or the new Wellness Center. A number of Winchester gyms lodged complaints with city officials before the center opened, saying Valley Health’s nonprofit status gives the facility an unfair advantage.

    In turn, local leaders asked Valley Health to pay property taxes on the facility, Lewis said.

    Still, officials say the spa, the gym, and other such ventures are all approved by the company’s board of volunteer community leaders — another requirement of a nonprofit hospital.

    “Our board is always sensitive to our charity care policies, assuring that we’re being as fair to our communities as we can possibly be,” Halseth said.

    Even if management is not thinking exclusively about consumer benefit — whether regarding charity care or the impact of a spa within a nonprofit business structure — Halseth said, “I assure you our boards are. And it’s healthy for us to have a board not just looking out for us.”

    

    — Contact Jason Kane at  jkane@winchesterstar.com

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

*****************************************************************************

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.

*****************************************************************************


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:

*****************************************************************************

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



*****************************************************************************

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.

Is Valley Health competing against taxpaying businesses?

http://www.valleyhealthlink.com/

Is Valley Health trying to be a good neighbor in the local community or do they want to bully its way over other taxpaying business?

For the record, nobody is disputing the quality of care that Valley Health provides, but there is another side that the local community is not very well informed about.  The two articles below should open your eyes up to a different perspective.

Former Grocery Store Takes on Healthy Look
Quad - State Business Journal
March 1, 2006
By Peter Heerwagen 
(highlights from the article)



While Valley Health sees synergy between its two units at 525 Amherst Avenue, it is less sanguine about the third tenant, the Winchester Eye Surgery Center. Looking for more control over scheduling of patients for cataract and other eye surgeries, ophthalmologists Dr. Frank "Hank" Reuling, Dr. John Stefano, and Dr. Nancy Eisele have joined forces to open their own surgical center.


Last year, the Winchester Eye Surgery Clinic applied to the Virginia Department of Health for a certificate of public need (COPN). Despite receiving a letter of opposition from Winchester Medical Center, which has its own Surgi-Center, at which cataract removals are performed, the state agency granted the COPN on December 22.


"We opposed it because it was a duplication of the services we provide," said Larry Van Hoose, [then] vice president for Valley Health. "Duplication tends to drive health care costs up.


Chamberlin said the ophthalmologists will invest $1.5 million in the center, and "Dr. Reuling is the largest equity owner."

The Eye Surgery Center of Winchester is dedicated to providing the most advanced eye care and technology to the citizens of the Shenandoah Valley region. You will find the best in outpatient care and ophthalmic surgical technology at our facility. ESCW is currently performing cataract surgery, corneal surgery, oculoplastics, glaucoma surgery and general ophthalmology.

It is ESCW's  intention to provide a specialized environment specific to the needs of ophthalmic patients to encourage convenient access with lower cost in a setting more personalized than a traditional hospital.

Their surgeons and surgery center staff enjoy living and working in the Winchester community and surrounding areas and they want to be good community citizens. They plan to foster the delivery of charity care at the Eye Surgery Center of Winchester. They will provide charitable care at their facility in a volume that is in the top levels of health care facilities in the region.

To learn more about ESCW, following this link -> The Eye Surgery Center of Winchester

Valley Health Plans to Build Wellness Center

Quad - State Business Journal

March 2006 by Peter Heerwagen

Valley Health is ramping up its wellness offerings with a $17 million. 55,000- to 60,000-square-foot wellness center, complete with fourlane pool and running track, to be located on the campus of Winchester Medical Center.

Because it is greater than $1 million, the project needs a Certificate of Public Need (COPN) from the Virginia Department of Health. That is expected to be received by next month or in July. "The center should open in the winter of 2008, the first quarter of that year," said Dena Kent, executive director of wellness and rehabilitation at Valley Health.

In the jargon of the health-care industry, wellness centers owned by hospitals are called medical fitness facilities. Many of them, including the proposed Valley Health center, are run as non-profit businesses, so they don't pay income, property and sales taxes.

That status has raised objections from owners of for-profit commercial fitness facilities such as Nautilus, Gold's Gym and others, although none of the local operators has complained about Valley Health's proposed project to the Virginia Department of Health.

Not-for-profit hospitals have for-profit subsidiaries when they establish businesses like home care, pharmacies and physical therapy that compete with the private sector. However, when it comes to wellness centers, hospitals argue that promotion and improvement of the health of the communities they serve is part of their mission statement, so the centers should also be non-profit.

"There are over 1,000 of them [medical fitness centers], and they are primarily part of the health-care mission of preventive care," said Kent. "A lot of commercial clubs have tried to make an issue of it, but we go back to our mission and how much free care Winchester Medical Center provides, which is the second highest of all hospitals in Virginia [University of Virginia Medical Center is first]."

The $17 million cost projection includes the building, equipment and furniture, but that figure could change. "That was based on a 2005 price estimate," said Kent. "We're not going to get it re-bid until the COPN is received and the architect's plans are done." She said the Hughes Group is doing the architectural work, having designed a number of recreational wellness facilities, including university-based ones with pools.

The wellness center will include a 25-yard/meter pool, and a 10-to 15-lap-to-the-mile running track. It will include space for occupational and physical therapy outpatients now receiving services at other locations. Cardiac rehab might also move to the center at a later time.

An issue addressed by one of the oversight agencies reviewing the COPN request, Northwestern Virginia Health Systems Agency, Inc., was the "immediate and long-term financial feasibility of the project," as set forth in its Staff Report/Analysis, as amended March 22, 2006. The answer given in the report was, "The project would be funded from VHS [Valley Health System] cash reserves. FY 2004 year-end balance sheets show cash, cash equivalents and investments in excess of $170 million, easily sufficient to finance the capital costs of the project."

Craig Lewis, CFO for Valley Health, said that $170 million figure has gone up in the last year. "It represents our accumulated reserves, and it helps give us our AA bond rating. We have done well over the years due to the support of the community and our providing quality health care."

The wellness center will fall directly under Valley Health in the organization chart and not be part of Winchester Medical Center. "The wellness department, which serves all our hospitals, has always been under Valley Health, as we run outreach programs, exercise programs and others," said Kent.

Helping Valley Health plan the wellness center is Power Wellness LLC, a Chelsea, Mien.,-based company that manages a dozen large medical fitness centers. "They are a consultant and did the feasibility study and market research for us," said Kent.

"Although they operate other facilities, we will operate ours. They will be doing things that hospitals normally don't do. They will help with small segments such as billing for membership, which we will sub out to them. We are experienced in billing to insurance companies, but not for memberships."

In projections used for COPN approval, Valley Health said it is looking at a membership of 4,000 persons, targeting the 35- to 80-age group, especially people who don't exercise, said Kent. By comparison, Rockingham Memorial Hospital in Harrisonburg, which has operated the RMH Wellness Center for a number of years, has 5,000 members paying $49 a month, said Director Tommy Hodge.

"We have 3,000 of our own employees in Winchester," said Kent. Valley Health is projecting that one third of them will join the wellness center.

"We looked at the current market, and 82% of the people within a 15 minute drive of the hospital do not belong to a health or fitness club," said Kent. Based on a survey, 4,741 of the 12,475 households who are not club members, or 38%, said they would definitely or probably use the Valley Health facility.

"I have met with owners of the local clubs, and some say we will take members away from them," said Kent. "But we are hoping to attract people who don't exercise. In most markets, commercial clubs did not go out of business; their memberships actually went up because of the increased awareness of fitness."

Memberships are slated to cost $50 for a single person and $80 for a family. "We will be more expensive than any other facility in the area because we'll have more staffing," said Kent." We will set the pricing before we open. Our current pool membership is $30 [at the Cork Street rehab center]. Pools are expensive because you need lifeguards and it must be clean.

"This is not just an exercise membership, although exercise is one part of the package. It is nutrition, understanding personal health issues through a health assessment program, and offering other programs like smoking cessation. And, for example, bariatrics, those persons who are overweight, are not comfortable going into a health club. We're not going to be just a workout club; we'll be open to all.

"We hope that businesses will give incentives and discounts to their employees to join the center. We're also interested in working with area industries in the areas of diet, diabetes, all of which drive up health care-costs."

One issue raised by the International Health, Racquet and Sportsclub Association in Boston, in a January letter to Valley Health's board of directors, is that "to justify a hospital-affiliated fitness facility' tax exempt status, it must restrict membership to hospital patients; or if non-patients will be members it must be available to the entire community and be able to document that its membership is representative of all economic classes in the community. The tax exemption of several hospitals has been challenged, often successfully, because hospitals have failed to meet theses guidelines."

Kent said financial aid would be available to some people. "We will do health assessments on every member and develop individual plans for them. If they have a medical condition that needs attention, then they can get a scholarship [if they are needy].

"There will be a number of health outreach programs, where anyone can come at any time and there are no fees."

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.

"The money will go back into programs like the emergency room and other services delivered by the healthcare system," said Kent. "The amount of health care that we give away is far more than the taxes we would pay [as a non-profit].

"If it [wellness center] is such a big money maker, others would have come into the market."

Update on push-button poles/signage @ Braddock/Cork street intersection

There's an update on this post in the comments field.  Just click on the link below of the post that was featured on October 9th.

A mistake or not with the placement of the NEW push button pedestrians poles/signage?




Update Oct. 13th @ 1:03pm from City official:

Thank you for your suggestions regarding the location of the pedestrian signals.

The City’s engineer has looked at this and concludes that while they would work in either location, he thinks they are fine where they are.    

We appreciate your sharing your thoughts with us.  

Update Oct. 12th @ 6pm:

I recv'd a call late this afternoon stating that Perry and Jason were scoping out the Braddock Street intersection. I was informed that there was some gesturing of the hands with what should be the proper location of the boxes and shaking of the head with disappointment.

My informant wish he had a camera as those shots would have been priceless.

This intersection is not the only one, as there many others just like the Braddock/Cork street intersection.

Bottom-line, let's hope all of these push-button oversights get corrected because it's the little details that appear to be getting over-looked

How many Shenandoah University students infiltrate our community each fall?

How many Shenandoah University students infiltrate our community each fall?

This Shenandoah University / Bridgewater College / James Madison University comparison on the number of students that infiltrate our community each year should help to put this in perspective.

Basically, one would take ¾ of the population of Winchester (25,897 estimate 2008) and inject those folks in the City of Harrisonburg (40,885 estimate 2006) each fall.  The town of Bridgewater has a population of 5,203 as of year 2000.

Not 100% sure IF SU's 3,393 students is counting the satellite campuses or not so the number of students that are within the 22601 area is not that transparent.

City of Winchester:
25,897 / 1658 undergrad + ???? out of 1295 grad-students = total # of students living in the Winchester area
3,393 Shenandoah (undergraduate+graduate)

Town of Bridgewater:
5,203 / 1500 Bridgewater College

City of Harrisonburg:
40,885 / 17,964 James Madison (total on-campus enrollment)


SU breakdown:

Student profile, fall 2007
• 3,393 students
1,234 men (36%) and 2,159 women (64%)
• Approximately 1/2 of the student body is undergraduate students; the remaining half is graduate students in master's or doctoral-degree programs.
• 314 international students come from 73 foreign countries.
• U.S. students come from 49 states plus the District of Columbia.
• The average age of undergraduate students is 24; the median is 21.
• Students profess different religions faiths including: Buddhism, Baha'i, Hinduism, Islam, Judaism, Church of Jesus Christ of Latter Day Saints, Orthodox Christian (Russian, Romanian, and Greek), and other Western Christian, non-denomination, and other non-Christian groups. Largest denominational representations include Roman Catholic, United Methodist, and Anglican (Episcopal).
• 3.4% international (non-Green card holders)
• 4.8% Black, non-Hispanic
• .2% American Indian/Alaskan Native
• 2.5% Asian/Pacific Islander
• 1.4% Hispanic
• 31.3% White, non-Hispanic
• 56.5% declined to state

Incoming Undergraduate Students
• 193 men (48%) and 205 (52%) women
• 1.76% international (non-Green card holders)
• 11.31% Black, non-Hispanic
• .75% American Indian/Alaskan Native
• 1.76% Asian/Pacific Islander
• 2.26% Hispanic
• 72.36% White, non-Hispanic
• 9.8% declined to state

All Graduate Students
• 350 men (27.03%) and 945 (72.97%) women
• 4.48% international (non-Green card holders)
• 3.45% Black, non-Hispanic
• .08% American Indian/Alaskan Native
• 2.09% Asian/Pacific Islander
• 1.78% Hispanic
• 35.37% White, non-Hispanic
• 52.74% declined to state

All First-Professional (Doctor of Pharmacy) Students
• 174 (39.55%) men and 266 (60.55) women
• 1.36% international (non-Green card holders)
• .91% Black, non-Hispanic
• .00% American Indian/Alaskan Native
• 5.23% Asian/Pacific Islander
• .91% Hispanic
• 14.09% White, non-Hispanic
• 60.45% declined to state

Student Life
• Seven coed, single and double room residence halls
• Honors and quiet halls are available.
• 745 undergraduate students live in institutional supported housing.
• 913 undergraduates reside in off-campus in non-institutional supported housing.
• Students may choose from 44 different clubs and organizations.
• There are 16 varsity, two club sports and several intramural sports.
• First- and second-year students are required to live on campus.
• The 40,000 square-foot Brandt Student center, opened in May, 2008, is the hub of student activities.

Admissions (Fall 2007)
• 1,281 undergraduate applications were received for a first-year class of 397 full-time, first-time, degree-seeking freshmen students.
• They came from seven countries and 22 states.
• 242 came from a Virginia high school.
• 153 from an out-of-state high school.
• Two were home-schooled.
• One entered with a GED.
• The average high school GPA is 3.2.
• 57 percent of the freshman scored between a 2.5 and 3.5 high school GPA.
• 19 percent scored about a 3.75 percent high school GPA
• 14 percent of the freshmen were in the top 10 percent of their graduating class;
• 38 percent were in the top 25 percent, and 65 percent were in the top 50 percent.
• The median SAT score for admitted students was over 1500, including the writing test.
• 96.67 percent submitted SAT scores. The combined average SAT is 1503 including the new writing test.
• 21.28 percent submitted ACT scores. The average ACT score is 20.
• Of 189 transfer students, 99 were from two-year Virginia junior colleges, 21 from Virginia four-year institutions, and 69 from four-year out-of-state institutions.
• 64% of those applying to master's-level programs were accepted.
• 42% of those applying to master's-level programs including nursing, certificates in health-care management, family nurse practitioner, psychiatric mental health, music therapy, athletic training, occupational therapy, and physician's assistant



Fast Facts about Bridgewater College

• Location: In the town of Bridgewater (population 5,203) in the scenic Shenandoah Valley, eight miles from the city of Harrisonburg.
• Students: Approximately 1500 men and women mainly from Virginia and the mid-Atlantic states; 25 other states and eight countries represented.
• Faculty: 96 full-time faculty members.
• Student-faculty ratio: 14 to 1.
• Activities: More than 70 campus organizations, including campus radio, student government, campus plays, pep band, dance team, cheer leading, student recitals, films, art exhibits, visiting scholars, comedians, and concerts by the college choirs, symphonic band, and jazz band. Students sometimes drive to Richmond, Charlottesville, and Washington, D.C. for museums, ballet, opera, musical concerts, movies, and other cultural and entertainment opportunities.
• Athletics: 21 intercollegiate teams; member of the NCAA Division III and Old Dominion Athletic Conference; a wide variety of intramural sports and sports clubs.
• Alumni: Approximately 15,000.

Now take a look at JMU's numbers:


On-campus Students (Fall 2008)

Undergrad Degree-Seeking: 16,619
Graduate Degree-Seeking: 1,136
Non-Degree-Seeking: 209
Full-Time: 17,078
Part-Time: 886
In-State: 70.3%
Out-of-State: 29.7%
Total on-campus enrollment : 17,964


Applicant details (Fall 2008)

Entering Class Applicants: 19,245
Enrolled: 3,957
Mean SAT (verbal and math only) Score (Freshman): 1148
Transfer Applicants: 1,781
Enrolled: 651
Total applicants: 21,026

Sherando answered the call everytime to get a 21-17 win over James Wood

For James Wood, missed opportunities to finish up drives and must quit trying to arm tackle.  JW's Tinsman had multiple opportunities where he rolled out to pass and had a plethora of real-estate in front of him to pick up much positive yardage vs. waiting for receiver to open up.  If he tucks and run on those roll outs, then it would have opened up the passing game.  Not knocking him, but hopefully his instincts will kick in sooner to recognize that opportunity in the future.  Lockhart had to work his tail off for the yardage that he got tonight. 

As for Sherando, they answered JW's call repeatedly.  The Warriors D came to play and was hitting hard all night long.  Dalton Boyd can flat out fly!  His 94yd kick-off return in 4th quarter was the difference.  Blackwood was difficult to bring down tonight, every-time it appeared that he was stopped, he managed to turn a stop/loss into a positive gain more than just one occasion.

Sherando has some athletes and look for Tre Porter to be a difference maker in the 2nd half of the Warriors season.  James Wood will rebound and get back on a roll to finish up the regular season at the Handley Bowl that will have huge playoff implications.

Great atmosphere up on the Ridge tonight!   Good stuff for the citizenry of Frederick County & Winchester!

Economic Impact on the City if Winchester Baseball is able to host the 2011 10yr World Series

Wanted to share with the local community that the perception taken from this e-mail sent on October 8, 2009 sent from WPRD official [Mike White, Operations Superintendent] is that they are finally admitting that the previous numbers presented by [Brad Veach, WPRD Director] to City Council back in February of $1.2-$2million were skewed and not researched thoroughly.  These numbers of $1.2-$2million were disputed back in late February after they were presented to City Council for consideration for requesting money by WPRD for improvements to the Rotary Field.  The concern was meant by WPRD resistance in the failure to acknowledge the twisted figures until this October 8th e-mail.

-----Original Message-----
From: Michael White
Date: Thu, Oct 8, 2009 at 10:04 AM
Subject: economic impact study
To: The1nOnlyPibb@gmail.com

I read your blog…pretty interesting information.

I’d be interested in looking at your figures on the economic impact of having the Babe Ruth World Series come to Winchester.  We’ve seen different studies and different methods of calculating the impact on these tournaments and events.  What we’ve found is the impact numbers are approximate figures and that it’s tough to determine the exact impact.  I’d be interested in taking a look at your numbers and see what you used for a dollar turnover multiplier, etc.  I’ve run the numbers myself using different formulas than what was initially provided.  I used an average daily spending amount recommended by a national expert in parks & recreation from Texas A&M University.  What I came up with was in between your figures [$337k-$472k] and the $1.2 million figure previously mentioned in the newspaper.

Also, if you’re interested in an update on Bridgeforth field and where the renovations stand, feel free to swing by or give me a call.  Kevin Sine and John gave you accurate information on the current project but I can let you know where the committee currently stands and what our plans are moving forward.

Thanks,

Mike

Michael White, CPRP

Operations Superintendent

Winchester Parks & Recreation Department

1001 East Cork Street

Winchester, VA  22601

(540) 667-1573 - phone

(540) 678-8791 - fax

For the record, these numbers of $1.2-$2million economic impact for hosting a World Series event were sent from the Babe Ruth Headquarters.  Organizations considering hosting such an event much realize that the headquarters executives will make it appear as lucrative as possible because they need host cities each year and the league host officials should do their due diligence.

-----Original Message-----
From: Bradley Veach [mailto:bveach@ci.winchester.va.us]
Sent: Saturday, February 28, 2009 10:53 AM
To:
Subject: RE: local economic impact

It seems to be the standard formula that Babe Ruth shares with all communities in which a World Series is hosted.  I understand what you are saying but I don’t think you realize that the $400K pumped into the community is unrealized beyond the event.  For example, the hotel is paying its staff with this money; their staff goes out and buys something from a local business that pays taxes to the locality, etc.  Most of the money collected will flow through the community beyond the 10 day event.  The communities that host the Series range anywhere from 11,000 people to over 80,000 people according to the folks I personally spoke to in IN, CO, and LA.  Indiana has hosted 4 tournaments over the years and they were pushing Babe Ruth to make them the host site as they realized the dramatic impact it had on their local economy.  Of course, Babe Ruth only allows one area to host it year after year and that is in Aberdeen so their request was not approved.


Folks who use this formula locally did not question the numbers.  I’ve shared this with some local businesses and tourism folks who use these types of formulas all the time and they did not question it.  I think they probably have a better economic background that you or I and realize the potential of this 10 day event and they have the greatest potential to reap the benefits of such an event.


Thanks for your thoughts.  Have a good weekend.

Brad


-----Original Message-----
From:
Sent: Tuesday, February 24, 2009 8:42 PM
To: 'Bradley Veach'
Subject: RE: local economic impact

Brad,

Just wanted to share what I have learned about this compounding factor formula.  Babe Ruth is using an economic impact spending study on a university town.  The University of Georgia is an annual/reoccurring impact on that local economy.  The WS event is just a 10-day event.  That is like comparing apples to oranges.

I believe their figure of $414,600 is a high estimate and is in the ballpark.  I am working on a more detailed analysis of potential revenue that could be drawn into the City of Winchester.  Again, I am concerned about this $1.2 - $2 million dollar figure is being communicated with the community.  Some people will be under the impression that $1.2-2million will be flowing into this town for this 10-day event and that is very misleading.

Again, I am not against the World Series coming to Winchester but I do like this revenue number being thrown out that is unrealistic.

http://www.terry.uga.edu/news/releases/2002/uga_spending.html

 

What are Economic multipliers?

To learn more about Economic multipliers and how they should be viewed with much skepticism, click on the following:

• Economic Multipliers and Mega-Event Analysis
  
  
• Rejecting “Conventional” Wisdom: Estimating the Economic Impact by College of the Holy Cross, Department of Economics Faculty Research Series

Is Bridgeforth Field finally getting the proposed $4.2million dollar makeover?

Baseball enthusiasts should easily remember the architectural drawing that was made public during the Winchester Royals games back in late summer of 2008.  Bridgeforth Field Field serves as a home field for Shenandoah University, Handley High School, Winchester Royals and Winchester Baseball.

Unfortunately the picture(s) taken today, October 6th is not (IMHO) part of the $4.2million dollar renovation project.  This repair work can be easily viewed as a band-aid fix to a much deteriorated press-box at Bridgeforth field in Jim Barnett Park.  The $4.2 million renovation project includes a NEW press-box, new concession stand, new restrooms, new team rooms, new dugouts along with an A-Turf infield.

WPRD associates (Kevin Sine and John Haines) along with a hired outside contractor are removing the old siding on the press-box and will be installing new vinyl siding and new windows.  Also, involved in this project will be Mr. Robertson's tech-ed class from Handley High School.  The students from Handley will be doing work within the press-box that should include a new press row counter-top and maybe some pre-owned cabinets and new wall paneling.

It should not be a surprise to the local fans that the remodeling work on the press-box at Bridgeforth field will be a reason to justify [if approved] WPRD and City Council spending less than $500k on the renovations needed at Rotary Field that will enable Winchester Baseball to host the 2011 10-yr Cal-Ripken World Series.

Nobody is against Winchester Baseball hosting such an event BUT many local residents are against taxpayers money being spent for this event since Bridgeforth Field (constructed 1978) has many known problems, including an infield that is about as safe as playing Russian roulette with the baseballs hit at the infielders.

Also, this financial economic impact described in the article below on the local community of $1.2 - $2 million is very misleading [its not actual dollars being spent] but is determined on a economic multiplier formula.

To learn more about Economic multipliers and how they should be viewed with much skepticism, click on the following:

• Economic Multipliers and Mega-Event Analysis 
• Rejecting “Conventional” Wisdom: Estimating the Economic Impact by College of the Holy Cross, Department of Economics Faculty Research Series
  

An in-depth research indicates a more realistic dollar range of $337k-$472k [actual dollars] that potentially could be spent in the City of Winchester for hosting such an event.  If anyone who would like to see that spreadsheet used to arrive at these figures, please send request to The1nOnlyPIBB(at)gmail(dot)com

To close, since the Bridgeforth Renovation committee meetings are few and very far between, makes many wonder, will the $4.2 million dollar makeover at Bridgeforth Field ever come to fruition? 

Winchester has chance to host Babe Ruth W.S.

By Ben Brooks
The Winchester Star
February 19, 2009

WINCHESTER — Winchester Baseball President Bob Brown knows that area youth players can compete on the national level. As a coach, he’s seen it before. Now, he hopes the rest of the Winchester community will get a first-hand look as well.

They could get that opportunity if nearly $500,000 worth of improvements can be made to Jim Barnett Park’s Rotary Field in time for the 2011 Cal Ripken/Babe Ruth 10-year-old World Series.

“It would be a real plus for Winchester Baseball and the community to host this and for our children to be able to play on a national stage,” Brown said Wednesday. “And they would be able to compete. We’ve played in two World Series over the years and numerous regional tournaments.”

Brown, along with other members of Winchester Baseball, petitioned the national Babe Ruth Baseball organization several years ago about bringing the showcase event to this area. Winchester has hosted several state and regional tournaments in previous years. Last fall Brown and several Winchester Baseball representatives were invited to a training session in Van Buren, Ark., to learn more about how to prepare for such an event.

“They said it’s ours if we can make the commitment and get some things done,” Brown said.

The bulk of the money used for improvements to Rotary Field would go toward building a larger press box. Upgrades would also be needed in lighting, dugouts, and seating.

Winchester Parks and Recreation Director Brad Veach, who Tuesday night presented City Council with the idea of Winchester hosting the 2011 tournament and the price tag for necessary field improvements, said the next step is to gauge how much support there is for such a project within the community.

The councilors said they would be more inclined to support hosting the tournament if the expenses were shared regionally and through sponsorships with local businesses.

“Now’s the hard part,” Veach said. “During these tough economic times there’s not a whole lot of money to give away. I’m going to do what they asked and try to get that community support.

“Winchester Baseball is a major fundraiser. They’ve made great improvements on the fields over the years. I wouldn’t put anything past them. If they’re passionate about something they’ll do whatever they can.”

Both Brown and Veach stressed that a tournament like a Babe Ruth World Series would likely bring in more money to the local economy than it would cost.

Citing an economic analysis that Babe Ruth Baseball does for host cities, Veach said that areas normally generate between $1.2 and $2 million over the 10-day tournament. That money comes from hotels (an estimate of 700 rooms needed) meals at local restaurants, gas and other expenditures.

Bridgeforth Field entire complex pics, taken back in late June 2008:

“Healthcare Soundoff’s” perspective on Valley Health's $56million in "community benefits" for 2007

For the record, I am NOT disputing Valley Health's quality of care, but I am trying to get a better understanding on these huge profit figures that are NOT shared with the local community and the massive “community benefit” figures that they throw out in the public eye.

Bottom-line, it's becoming more known that the nurses are under compensated along with the blue-collar workers, for example: housekeeping associates.

As we all need to get a better understanding on this term "community benefit", an outside organization in Northern VA identified as HealthCare Soundoff was called upon for some help.  Attached below is their perspective on Valley Health's $56 million "community benefit" figure.

As it was explained to me in regards to "charity care" ... If you make a widget and you sell it for $100 but it only costs you $2 to build it, then you are only allowed to write-off $2 when you donate those widgets. That will help to explain "cost" vs. "charges" below.

 

http://www.healthcaresoundoff.com/

December 4, 2008
Based out of Northern, VA

1.    They claim to have actually rendered $18.9 million in charity care.  Care they gave away.  The trick here is what does the $18.9 represent?  My guess is that they use "charges" as the basis for calculating this figure.  No hospital receives charges for their services anymore. All hospitals regularly give substantial discounts off of charges to insured patients.  So this is an inflated figure.

2.    They claim a loss on Medicaid of $10.8 million.  This represents what they collected from Medicaid for services and what they did not receive if they had again received "charges."  This is also funny money.  They got paid for these services according to a Medicaid agreement they have signed but have accounted for it in a way that allows them to claim a loss for "charitable purposes."

3.    They wrote off $17.5 million in bad debts as noncollectable. This is off a "charges" figure as well. This is self explanatory.  Couldn’t collect.

This totals $47.2 million.  The remaining $8.8 million they claim must be part of the expenses of all the services they list on that web page.

So if you were trying to figure out what the actual figure should be it would require you to assign a factor to "charges."  This represents a figure that the typical Blue Cross patient would pay.  I would say 85% of charges would be a good conservative starting point.  So the real figure would be closer to $40.1 million if they were using realistic numbers.  So overall it looks like Valley gave away $48.9million.

Now here is the kicker … Bad debt and Medicaid write offs are the bulk of this calculation.  Many have argued that using Medicaid write offs to bolster your charity care number is intellectually and actually off base.  Why?  The hospital actually collects something for all of these services, not their charges or even what they want but they do collect.

To get the most accurate information on how they are reporting I would suggest you got to the IRS website and pull down the Valley Health Form 990 which is a public record.  Looking at the IRS 990s will be the best source.  It is what they file with the IRS and vouches for their charitable purpose.  When they are counting bad debt, Medicaid bad debt, and free services in the figure they use on their web page, I am sure they are using figures that are based on "charges" and those figures have no relationship to net patient revenue.

There are very few hospitals that do not use "charges" to peg their write-offs and equate that with charity care.  Look at the 990s.  There are a couple of websites that store them.  Go to google and search IRS 990 or nonprofit 990 and you might find the 2007 990 for Valley Health.  It will include all sorts of interesting information.

They will probably file their 2008 sometime in February or March.  The 2007 should be there.  Also contact wherethemoneygoes.org. They may be interested in your story and position.