GRINNELL (SPECIAL) – Grinnell Regional Medical Center released its 2008 annual report, “Your Hospital, Our Story,” to the public. The 2008 report can be found online at www.grmc.us . It is the first online annual report for GRMC, strengthening the organization’s commitment to the environment and to saving paper, printing, and postage costs.

Within the online video and text report, GRMC’s main accomplishments and advances in 2008 are highlighted, along with a financial performance summary, optimal healing practices, new medical staff, and advocacy efforts to correct unfair Medicare payment.

While providing some of the highest quality, lowest-cost medical care in the nation, GRMC still struggled with a $3.1 million loss from operations for 2008. Reimbursement challenges, decreasing numbers of patients, the rising need for charity care, and more people having difficulty paying their medical bills all contributed to this loss. GRMC’s total operating revenue was $74,754,158 however deductions such as commercial insurance and government insurance discounted rates, charity care, and bad debt reached $33,370,454. This generated a net revenue of $41,383,740, which is a $2.9 million reduction from the previous year.

Total expenses were $44,452,868 in 2008. GRMC reduced expenses by $1.8 million to counter the revenue challenges; however, it wasn’t enough to close the $3.1 million gap in operations budget.

Community members contributed to the medical center in exceptional ways with last year’s record-setting annual fund drive of more than $313,000 from 1,148 donors. GRMC also received nearly $600,000 from other sources such as memorials, gift annuities, fundraisers, and estate distributions. Along with grants, these donations help to upgrade needed medical equipment, renovations, and other ongoing programs. This support helps bridge the widening gap between revenues and expenses.

Optimal healing created an environment of health and harmony at GRMC last year. Our medical center is a leader in the nation for offering integrated therapies to patients. USA Today (June 2008) featured Anne Stephens, an acupuncturist at Postels Community Health Park, GRMC’s integrated therapies clinic.

“Success came in different forms this year. We made some serious changes due to financial challenges, but we still recruited eight healthcare providers, reached out to neighbors affected by natural disasters, and gave outstanding care to our patients. You cannot assign a numerical value to those successes,” says Susan Witt, chair of GRMC’s board.

Ongoing community programs and benefits supporting the optimal healing environment to area residents included the Women’s Health Focus, Community Care Clinic serving those without healthcare insurance, Senior Education Program, GRMC Baby Fair, distributing bike helmets to third graders in the area, community blood screens, donations to more than 10 area schools funded by the sports physical at area clinics, Relay for Life support, infant/car seat safety checks, and the Green Health initiative.

“In national studies, Iowa ranked second best in the nation for highest quality, lowest cost, and best access in healthcare. GRMC’s costs are below the national average, yet we still only receive 67 percent of our costs in caring for Medicare and Medicaid patients, representing nearly two-thirds of our patients. Considering the national average for Medicare reimbursement is about 90 percent, rewarding inefficient healthcare in other states is an injustice that must be addressed this year in healthcare reform,” says Todd C. Linden, GRMC president and CEO. “It is simply unacceptable to be paid almost $7 million less than we spent taking care of these patient populations, and expect we can shift those costs to the rest of our patients.”

The 2008 GRMC Annual Report, “Your Hospital, Our Story,” can be viewed online at www.grmc.us . If you have any questions, please call the public relations office at 641-236-2593.