Dr. Jim Harrell, Hugh Chatham Foundation president, introduced Loving by saying “his name is Loving and he is a very loving person.”
Harrell spoke to the leadership class of Loving’s experience in running hospitals and how pleased Hugh Chatham was to have him onboard.
Loving spoke to the class about the financial stability of HCMH and the many new innovative health care services that are being offered through the hospital with the new $50,000,000 tower and specialty departments.
“Everything has a financial aspect within the hospital,” Loving said. “Our in-patient care takes care of an average of 50 patients per day. In 2003, the hospital averaged 3,222 patients compared to 5,114 in 2009. We had 18,572 acute patient days as well as 26,181 emergency room visits in 2009.
“All these account for the income of the hospital,” he said. “The hospital has close to 1,000 people on payroll with a salary expense of $32,538,221 in 2009 and an expected salary expense of $33,908,000 for 2010. Our capital expenditures, which allow us to add more programs, centers and build new facilities, were $29,277,036 in 2009.
“We have been able to provide new technology and services and our surgeries continue to change and expand as technology is reinvented every day,” Loving said. “Our bond rating and interest rate depends on how stable people think we are and if we’re doing the right things. A low interest rate on our debt service allows us to continue to do the things we do.”
Hugh Chatham’s cash available amount for 2010 is $62,000,000. The debt service the hospital is paying on is $80,000,000.
“We do use an advisor; Merrill Lynch, who helps us to maintain,” he said. “We rely on them to help with swaps and finding the best rates. With their help, we’ve been able to maintain an effective three percent interest rate on our capital.
“I’ve been in hospital’s where there has only been 15 days of cash on hand,” Loving said. “If anything would have happened the question was would they have been able to make their payroll. Here at HCMH, we have a very strong foundation.”
Loving explained to the class that 90 percent of clients/customers that come to Hugh Chatham have a fixed reimbursement for the services performed for them.
“The hospital needs to run effectively to be profitable,” Loving said. “In evidence based medicine, the physician may say ‘this is the best way to treat a particular diagnosis,’ and this may effect our way of billing and/or receiving reimbursement for the treatment. In 2003, HCMH had $750,000 in charity care cases and $3,411,462 in bad debt. In 2010 so far, the numbers are $3,800,000 in charity and $16,286,161. in bad debt. One of the biggest challenges that hospitals all across the nation are facing is that 80 percent of all hospital visits are now self-pay, and hospitals are receiving less reimbursement from both Medicaid and Medicare.
“Because of the federal rules and regulations, we have to treat everyone regardless of whether they can pay or not. Sometimes these laws really effect the cost of running the hospital. Supplies that are used daily are one additional cost that is not often thought about. But, at HCMH, it’s about the quality of care our patients receive and providing them with the newest innovations in healthcare.”
Loving talked about the hospital’s commitment to the community.
“Our plan is to serve the community to the best of our ability,” he said. “Every two years, the board sets out strategic priorities for needs with the facilities, staffing, and new technology. All this is a big financial responsibility. Hugh Chatham Memorial has a commitment to this community and will continue to work toward providing the services that the residents need and want in their own community.”
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