Record Charity Care Announced during Southwest's Founder's Week
06/03/2009
On June 6, 1858, a pioneering nun started a hospital to serve those in need of comfort and medical services. In the tradition of Mother Joseph's commitment to those in need, Southwest Washington Medical Center is publishing its annual community benefit and charity care contributions. Throughout the coming days, the more than 3,000 Southwest employees will celebrate our Founder's Week and all that we give in community services.
Southwest is committed to caring for our community's most vulnerable populations. This commitment translated to more than $76 million in total Community Benefits last year. The Community Benefits number includes more than $26 million in free or discounted health services for the poor. Serving vulnerable populations also requires the hospital to subsidize the cost of key mission programs that do not necessarily pay for themselves, such as our mental health services, Healthy Steps Women's and Children's Center and our Family Medicine residency program. In addition, the hospital is committed to offering health education, community outreach and research activities.
The amount of charity care provided on behalf of indigent patients at Southwest increased to $26.3 million in fiscal year 2008, up from $23.4 million in fiscal year 2007, according to recent financial statements of the not-for-profit regional Medical Center.
Additionally, Southwest provided another $29.6 million in services for which it never received payment (bad debt). That compares to $26.2 million in 2007.
'Southwest has a wonderful heritage of reaching out to serve the most vulnerable people in our community, and the latest charity care numbers demonstrate just how significant that commitment has grown over the years,' said Joseph M. Kortum, Southwest President and Chief Executive Officer.
'Unfortunately, the rising cost of charity care and bad debt is something we all end up paying for through rising health care premiums for those with traditional employer-based insurance coverage,' added Kortum.
In addition, the community-governed Medical Center absorbed more than $17.6 million in Medicaid payment shortfalls or un-reimbursed costs of caring for poor patients covered by Medicaid. Southwest estimates it also provided an additional $2.7 million in community services, such as community health programs and outreach efforts, health professional education, health research, and cash and in-kind donations.
Combining charity care, Medicaid shortfalls, uncompensated care (bad debt) and community services brings Southwest's total Community Benefits to approximately $76.3 million for 2008.
Tax Contribution-Although Southwest is a not-for-profit and tax-exempt organization, the Medical Center does pay significant taxes each year. Southwest's combined tax liability (including sales taxes on things like medical supplies and purchased services and capital expenditures) and business and occupational taxes in 2008 exceeded $11.9 million.
