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AnMed restructuring won't impact Anderson economy, hospital officials say
Photo by Ken Ruinard
AnMed Health Medical Center Dr. Anil Kumar Tammineni, middle, talks to discharge planner Brandy Salah, right, at the nurses fourth center floor.
Photo by Ken Ruinard
AnMed Health Medical Center in Anderson faces business decisions while it still attracts many patients and visitors.
Photo by Ken Ruinard
AnMed Health Medical Center continues to get business, where patients, employees, and visitors come and go the front lobby to different areas of service. The current economic climate has many businesses, including the hospital, looking into different approaches in spending money.
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ANDERSON COUNTY — AnMed Health’s new financial plan for fiscal year 2008-09 won’t impact Anderson’s economy, said Bill Manson, chief operating officer of the organization.
“We realize how much of an impact our organization has on the community,” Manson said. “I don’t think there’s anything that we’ve done that will have a significant impact on the Anderson economy. I think it’s more likely that the area’s economy will have a significant impact on us.”
Job losses, insurance cost increases from employees and a sagging economy combined last year to create a $5 million shortfall for Anderson-based AnMed. A new financial plan for the hospital for 2008-09 will correct that, said Jerry Parrish, chief financial officer for the hospital.
AnMed officials estimate that the organization has a total direct and indirect economic impact of nearly $800 million on the area’s economy.
The hospital employs roughly 3,500 people, and officials estimate that for every dollar it pays in salary, another $2.05 in payroll is generated in non-health care employment.
Changes to AnMed’s financial plan, Manson said, would not impact the area’s economy. But, the impact of the nation’s economy and the area’s economy will determine whether further measures need to be taken at AnMed, Parrish said.
The problem, Manson said, is not illegal immigrants using AnMed services, but that of Anderson residents who are uninsured or underinsured.
“The economy, of course, has an impact,” Manson said. “A lot of our emergency department growth is from folks losing their jobs. Our bad debts have increased significantly for just that reason. It’s very difficult to predict where the economy’s going to be for the rest of the year precisely. … Those two issues are the things that will (have) the most impact — increased demand for free care in our emergency departments and bad debt from people who can’t afford to pay the bills.”
Medicare and Medicaid patients account for nearly 67 percent of the total discharges at the hospital. Roughly 45 percent of those patients are Medicare patients, and those patients represent 57 percent of the hospital’s revenue. The area’s older population, and the fact AnMed is the only hospital in Anderson County, contribute to AnMed having a large number of Medicare patients, spokesmenfor the hospital said.
AnMed supplies roughly $29 million in charity care annually, Parrish said. Charity care involves services provided to those whose income is below 200 percent of the national poverty level, he said. The hospital also writes off more than $64 million in bad debt from clients who could not or would not pay.
Costs to treat Medicare and Medicaid patients was projected to be $226.24 million for AnMed for 2007, but the hospital only received $164.13 million, according to officials.
One measure the hospital has taken has been to create a minor care facility, which opened in earlier this year, to take some burden off of the emergency room.
State law requires the emergency department must provide a medical screening examination to everyone who comes to the emergency room.
Officials estimate the hospital sees more than 100,000 patients each year in the AnMed Health emergency department and trauma center. That number has increased roughly 20 percent over the last two years, Manson said.
The minor care facility, which is next to the main hospital on Fant Street, was opened to treat people whose health care concerns were not life-threatening. The facility, Manson said, was a proactive step to keep people from using the emergency room as their primary care physician.
“We have seen our minor care volumes grow significantly,” Manson said. “Every time we try to create something to move primary care from the emergency department … it really creates its own demand.”
Officials said they will continue to look to create increased efficiencies in the hospital’s operations. The current plan includes moving Wellspring, an adult chemical dependency treatment facility in Williamston, to the AnMed Health Medical Center campus on Fant Street in Anderson; moving the organization’s Women’s Health Clinic to the family medicine residency program; and eliminating 15 full-time positions through attrition, among other things.
“I wouldn’t say the (hospital’s economic picture) is rosy,” he said. “I think we’re trying to put together a financial plan that’s better than we’ve seen in the past. But, it will be difficult to manage it to that point now. Especially with the payers paying what they are.”
The hospital doesn’t anticipate any more adjustments to its current plan, but that could change, Manson said.
“As we get into the fiscal year, the economy worsens, people don’t pay, Medicare and Medicaid cut back on what they are paying. … We’d have to adjust to deal with the circumstances,” he said. “We don’t know, for example, (exactly what will happen with the economy).”
Much also hinges on what happens at the state level, he said.
“The economic forecast for the state is not good,” Manson said. “Medicaid is one thing that is one of the more significant parts of the South Carolina budget. Since we have such a large portion of Medicaid patients, it they end up cutting Medicaid funds, we would have to deal with that.”
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the hospital writes off 64 million. is that like say..i get a bloodtest. anmed charges $300, somewhere else may charge $100. remember i am only speculating. so, anmed bills your insurance and/or medicare $300.. insurance tells anmed your bill is ridiculous and we will only pay $200. anmed then bills patient with remaining balance and yada yada they are told i will only pay half of that...here's $50, leave me alone! do you mean like that other made up $50?
Yep, you are exactly right!! Patients are over charged for what ever thay have done and the insurance companies know this and they also know that they are being ripped off because of this and that makes them pay less than what is actually charged. Now I am not saying that it is just Anmed that does this , because it isn't. it is all hospitals and even doctors offices to. If these places would lower their prices for certain things that are way to high priced then maybe the patients could afford to pay what they owe. Personally I think that the Big Wigs way up in these companies need to take pay cuts and not have to lay off employees but like any company the rich get richer and the poor get poorer. That is America for ya. Don't get me wrong I love America and it's a great country but you have to admit that somethings need changing.
There isn't a Hospital in this country that doesn't bill this way. The government only pays 42 cents on the dollar for the people they insure. Private insurance companies pay a little bit better but not 100% Add to this the patients who never pay a dime for their care. Someone is going to get stuck with the rest. It's only a matter of simple economics. If Hospitals only accepted what insurance companies and self pay patients pay they would be bankrupt in a matter of days.
This story is changing faster than a bill to my insurance company. I am sure there are plenty of charity cases being treated at AnMed. However, my BCBS insurance does not pay for things like granite floors & artwork. AnMed started treating healthcare as if it were all elective care: http://www.independentmail.com/news/2...
Here is an experiment that will make your head spin. The next time you are treated at AnMed, forget to give them your insurance information. When you get the bill, hang on to it & then provide AnMed with your insurance. Compare the two bills when they think you are uninsured against BCBS insured. The rates charged for everything are drastically inflated for uninsured patients. I now think of my BCBS insurance as nothing more than mafia style protection against thieves. As for making monthly payments to AnMed, I have done so for years. I had to in order to pay off the charges in excess of what my insurer would pay. I like to think of that money as paying for the granite tiles. That tile is very nice & I enjoy walking across it.
how about the million dollar road at the health campus. very nice.
in response to xenacat2
With a budget twice the size of Anderson County's annual budget and showing a $5 million dollar loss on the books makes you wonder how much AnMed paid in taxes to the County last year. Sounds like they have been taking advice from Joey Preston. Would that be a conflict of interest? If everyone in the county followed Joey's example and changed their businesses over to non-profits would the county go broke? LOL Just kidding of course.
I'm just amazed with the lavish building and salaries paid by AnMed that they are so poorly managed they have to blame illegals, minorities or poor people for their malaise. Maybe they are under insured for non-paying clients.
The article indicated that illegals were specifically excluded as being part of the problem.
The problem with hospital billing is that they charge UNINSURED or "SELF-PAY" patients 2.5 times MORE than what they charge the insurance companies... go figure.
If I do get elected, I aim to work diligently to correct this problem.
Plain.
Simple.
Common Sense.
Capt. Leonardo Ortiz (USMM)
in response to Parent
Parent,
I believe there is a class-action lawsuit underway where this very issue is to be addressed.
http://anmedripoff.com/Site/Home-1.html
- SSHM
In response to all of you... It is really easy to set in judgement when you don't have to resolve the issue. We are working very hard to provide care and do it at a reasonable cost. Pretend for one minute that you own a business and people are not paying you. How do you pay the bills??? Unless you work in health care it is hard to understand, but there are hundreds of people working behind the scenes(making a living just like you) making sure that your blood work get processed correctly, your radiology exams are read correctly, you heart is checked out so that you don't come back an sue us. We do care about prices. We pay the same prices that you do. So do our families. After more than two decades in health care, I can say that we are not perfect but strive for excellence. Remember you do have a choice. There are other hospitals that you can use. The people complaining are usually the ones who won't pay. If you want to do something constructive, pray for our leaders that they have the wisdom to resolve these issues. As for the marble floors, Yes after 20 years we are upgrading our buildings to code and to provide patients and their families some comforts while away from their homes. If you comes to us and everything is worn out, you will also complain. So for all of your wining,,, stand up and do something positive to help. Make a difference.
in response to sportsdad
Thanks Sportsdad.. As an AnMed employee,I could not have said it better myself.
I understand the business of healthcare is unique. AnMed does not always have the ability to deny service when people are unable to pay. This places AnMed at a disadvantage compared to businesses capable of demanding payment or withholding services. AnMed is a non-profit & receives substantial tax breaks & receives grants to help offset this expense. They are now shifting expense onto less fortunate consumers who are less able to defend themselves in court.
There is a segment of the population avoiding needed treatment out of financial fear. More often than not, the choice of an alternative facility is not an option. The sickest people do not tend to go shopping – AnMed obviously knows that.
What bothers me more than over charging is over treating! I see patients that have fallen victim to this nasty cycle as a RESULT of having excellent health insurance. Not only does AnMed overcharge the uninsured, their physicians tend to over treat the properly insured. I worry more about the people who refuse admission to AnMed. But then again, maybe these people are better off.
The public needs to educate themselves on the business of healthcare. They need to understand that a hospital is not always looking out for the patient’s best interest. Always get second opinions when feasible & establish relationships w/ MDs prior to a crisis.
in response to sportsdad
I agree 100%!!! I work for another hospital in the area (former employee of AnMed,too) and can testify that when a hospital looks ratty and outdated, these are the very things people will complain about first on the survey forms. Yes, these are read and acted on if possible. If you stop and think about it, what if the other local businesses tried to run off of only half of their customers paying for services? They wouldn't be around for long. As usual, the ones who pay also pay for the ones who don't or can't. But we will continue to care for everyone.
Sportsdad, I'm sorry but if any area of the medical field charged a reasonable rate, they might get paid. Aspirin $5, pap smear $200 plus $200 for 5 min with a doctor. Heaven forbid you have surgery. If we all charged figures in line with this, none of us would get paid. And I'd rather walk than have to use an ambulance. It goes on and on.
AnMed Facts
Spooktacular was cancelled because the people attending were not the target market for AnMed.
Too many minorities without insurance. This is the reason the city made them move out of town.
You know, too many poor people.
Losing Five Millon a year? Check Again.
The conference table cost $100,000.
The Shower(private).....
?????????????????????????
While I agree that a hospital should not look ratty or rundown....the AnMed campus is waaaaaaaay overboard. Looking nice is one thing. Wasteful spending on architecture is another. And in my opinion, that is wasteful.
As for the writing off part...a member of my wife's family had his house taken and auctioned by AnMed. So don't give me that BS! He wasn't paying enough by their standards.
All the elitists in Anderson County tend to worry more about looks than workings. Spend more on the guts of the operation and worry less about being high class snobs and you may see an increase in revenue. (The Civic Center is another example of this. All show...no seating.)
The Hippocratic Oath
ÅEAR by Apollo the physician, and Aesculapius, and Health, and All-heal, and all the gods and goddesses, that, according to my ability and judgment, I will keep this Oath and this stipulation to reckon him who taught me this Art equally dear to me as my parents, to share my substance with him, and relieve his necessities if required; to look upon his offspring in the same footing as my own brothers, and to teach them this art, if they shall wish to learn it, without fee or stipulation; and that by precept, lecture, and every other mode of instruction, I will impart a knowledge of the Art to my own sons, and those of my teachers, and to disciples bound by a stipulation and oath according to the law of medicine, but to none others. I will follow that system of regimen which, according to my ability and judgment, I consider for the benefit of my patients, and abstain from whatever is deleterious and mischievous. I will give no deadly medicine to anyone if asked, nor suggest any such counsel; and in like manner I will not give to a woman a pessary to produce abortion. With purity and with holiness I will pass my life and practice my Art.
I will not cut persons laboring under the stone, but will leave this to be done by men who are practitioners of this work. Into whatever houses I enter, I will go into them for the benefit of the sick, and will abstain from every voluntary act of mischief and corruption; and, further from the seduction of females or males, of freemen and slaves. Whatever, in connection with my professional practice or not, in connection with it, I see or hear, in the life of men, which ought not to be spoken of abroad, I will not divulge, as reckoning that all such should be kept secret.
While I continue to keep this Oath unviolated, may it be granted to me to enjoy life and the practice of the art, respected by all men, in all times! But should I trespass and violate this Oath, may the reverse be my lot!
Source: Hippocrates, Works trans., Francis Adams (New York; Loeb) vol. I, 299-301.
I agree that a hospital has to make facial improvements and not look run down or ratty but does this have to be done at the expense of the employees? by that I mean Anmed says thay have lost sooooooooooo much money or rather not made enough but look at the price of what is paid out to upgrade the building and now since they have had a financial short fall for varies reasons they say they are going to give some of the full time employees the boot. Why don't they start with the Temporary employees they have and see how that helps out first instead of letting full time employees go first. I just think that Anmed's higher ups that are making all these decisions needs to step back and really look at the big picture and find a different avenue to cut back instead of letting valuable good loyal full time employees go. Maybe if the higher ups took a pay cut then the low employees would not have to suffer but that we all know is not likely to happen ever!! Come on Anmed your emplyees need their jobs to live, give them a break!!!!!!!!!!!!!
Hey higher ups, BE SMART FOR ONCE!!!!!!!
We all need to pray for a better future and that the higher up hospital decision makers would make better decisions and that our government decision makers would make better decisions. Pray people , it works!!!!! God still answers prayers!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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