Securing the Future of Securing the Future of Bacon County HospitalBacon County Hospital

Optimism is a VirtueOptimism is a Virtue

The Reason for Being…The Reason for Being…

• What effect does the hospital have on the community?

• Why have a hospital?

• Why is the hospital important?

Effect and importance of a Effect and importance of a hospitalhospital

• 250 employees and $6 million per year payroll (10.2 million indirect)

• Attraction for business and industry

• Emergency services, base for trauma transport and saving lives

Effect and importance of a Effect and importance of a hospitalhospital

• Convenience for the public Convenience for the public (traveling to get healthcare)(traveling to get healthcare)

• Provides a base for a strong medical Provides a base for a strong medical staffstaff

• Babies are born hereBabies are born here

Effect and importance of a Effect and importance of a hospitalhospital

• Diverse services (hospital, nursing home, rural health clinic, day care)

• Cafeteria

• Quality healthcare (JCAHO accredited)

What’s happened?What’s happened?

• Decrease in state and federal reimbursement

• Payor mix has changed

• More indigent care – can’t turn away

• Aging equipment and buildings

What’s happened?What’s happened?

• Complexity of care has increased

• Expectations of the public have increased

• Needs have changed:

• Most services are outpatient, much fewer inpatient

What’s happened?What’s happened?

• ADA requirements

• Patients want privacy (semi vs. private)

• Aging population

• Sicker population

What’s happened?What’s happened?

• Labor cost has increased

• Equipment and technology have increased

What WE think THEY needWhat WE think THEY need

Why do we need to Why do we need to change? (Build, change? (Build, modernize, update, modernize, update, improve)improve)• Retain physicians

• Recruit physicians

• Maintain current standard of care

• Meet public expectations

Why do we need to Why do we need to change?change?

• Compete effectively

• Become more efficient

• Create a more attractive face

• Source of community pride

What do we want to do?What do we want to do?

• Total 5-year needs: $7.7 million

• Expansion and modernization (ER, OR, OB, Lab, Xray)

• Provide for state-of-the-art replacement equipment (CT, echo, ultrasound)

• Improve appearance and comfort (renovate hospital and nursing home)

How do we do it?How do we do it?

Four options:

1. Live off of operations

2. Ask for millage

3. General obligation bonds

4. SPLOST

Option 1 (live off Option 1 (live off operations) operations) UNACCEPTABLE:UNACCEPTABLE:

• Reimbursement declining, costs Reimbursement declining, costs increasingincreasing

• BCH is already one of the lowest BCH is already one of the lowest cost providerscost providers

• Market base can’t expand enough Market base can’t expand enough to generate dollars neededto generate dollars needed

Option 2 (millage) Option 2 (millage) UNACCEPTABLE:UNACCEPTABLE:

• Unequal taxation (37% of Bacon Unequal taxation (37% of Bacon Countians pay)Countians pay)

• Would need 7-8 mills for five years Would need 7-8 mills for five years to get needs metto get needs met

• Meant for buoying up operations, Meant for buoying up operations, not capitalnot capital

Option 3 (general Option 3 (general obligation bonds) obligation bonds) UNACCEPTABLE:UNACCEPTABLE:

• Bonds are County issued and Bonds are County issued and guaranteedguaranteed

• Millage basedMillage based

Option 4 (SPLOST) is Option 4 (SPLOST) is needed:needed:

• Continuation of the current SPLOST Continuation of the current SPLOST for county (NO NEW TAX) for county (NO NEW TAX)

• Fairest tax (sales tax)Fairest tax (sales tax)

• Only used for capital improvements, Only used for capital improvements, community projectscommunity projects

Option 4 (SPLOST) is Option 4 (SPLOST) is needed:needed:

• Only used for growth, improvement Only used for growth, improvement and modernizationand modernization

• Used locally for important projects Used locally for important projects such as schools, public such as schools, public administrationadministration

• Other hospitals used SPLOST Other hospitals used SPLOST (Hazelhurst, Claxton)(Hazelhurst, Claxton)

There is a difference There is a difference between SPLOST and between SPLOST and needneed

• SPLOST = 5 millionSPLOST = 5 million

• Need = 7.7 millionNeed = 7.7 million

• Difference will be made up in Difference will be made up in operations and managementoperations and management

How will the difference be How will the difference be made up?made up?

• -increased volume-increased volume

• -increase number and type of MDs-increase number and type of MDs

• -promote and market hospital and -promote and market hospital and MDsMDs

• -improve quality-improve quality

• -decrease expenses-decrease expenses

What next?What next?

• Call your county commissionerCall your county commissioner

• Ask that they vote in July to put the Ask that they vote in July to put the sales tax on the September ballotsales tax on the September ballot