Backus remains strong in fiscal 2015, though some slippage noted
Norwich — The William W. Backus Hospital maintained its financial strength in fiscal 2015 despite increasing challenges, though some weakening in a key measure was noted during the annual meeting Wednesday.
The region’s second largest hospital, which joined the Hartford HealthCare network two years ago, ended fiscal 2015 with a 14 percent operating margin of revenues over expenses. The $40.9 million positive margin compares to a $48.6 million positive margin in fiscal 2014, in which revenues exceeded expenses by 16.2 percent.
“Just because Backus had a successful year financially doesn’t make Backus immune to all the pressures hospitals are facing,” hospital President David Whitehead said. “In the face of these headwinds, Backus has completed another highly successful year...in terms of quality, patient safety, access to care and financial performance to allow for reinvestment in our system of care.”
Elliot Joseph, president and chief executive officer of Hartford HealthCare, said declining Medicare and insurance reimbursements, coupled with Gov. Dannel P. Malloy’s plan to cut $55 million in state support for hospitals, are threatening the ability of hospitals to invest in new technology and continue to be economic engines for the state. He said that 15 percent of the state’s gross domestic product and 15 percent of its labor force is tied to health care.
“We’ve got to change the conversation, and I need your help,” he said, addressing a roomful of corporators, staff and board members. He urged audience members to become active in lobbying state legislators to stop the governor’s proposed cuts through www.stopthecutsnow.org.
“I will give you talking points about how you can help to raise your collective voices,” he said. In addition, Medicare — one of the hospital’s main revenue streams — is moving toward basing reimbursements on outcomes and quality measures rather than procedures, forcing hospitals to find new ways to adapt.
“It’s a time of innovation and opportunities for a system like ours,” he said.
Despite the sobering outlook, both he and Whitehead noted that Backus enjoyed some substantial achievements in the past year. Among them, the nonprofit hospital was among 132 others in the Northeast named on Tuesday to the Joint Commission’s list of top performers in 49 quality measures, including care for heart attacks, pneumonia, surgical care and stroke. Nationwide, 1,043 hospitals — 31.5 percent — were named to the top performers list, including nine in Connecticut. The Joint Commission is the independent, nonprofit organization that accredits the nation’s hospitals.
Other accomplishments of the past year noted at the meeting include:
• The creation of new primary care centers in Ledyard, Waterford and Norwichtown
• Groundbreaking for a 40,000-square-foot Backus Center for Specialty Care in Plainfield that will offer physical rehabilitation, women’s health care, cardiology, medical oncology, infusion and a surgery center.
• Launching of the Preventive Medicine Initiative that includes assigning clinical social workers to health centers in Norwichtown and Colchester to provide mental health care and nurse care managers at all health centers to work with high-use patients.
• Addition of robotic hip and knee surgery services
• Submission of an application with state regulators to add primary and elective angioplasty procedures
• Plans to expand rehabilitation services in Waterford.
Whitehead noted that as part of the reorganization of the Hartford HealthCare network, Backus, Windham Hospital and Natchaug Hospital are now overseen by a 13-member Eastern Region Board of Directors rather than three separate boards. The new board recently met for the first time.
j.benson@theday.com
Twitter: @BensonJudy
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