Good Samaritan Hospital's Board of Governor's meeting lasted all of 15 minutes on Tuesday afternoon, during which members learned about the success of the hospital's trauma services program, agreed to purchase another piece of state-of-the-art equipment, and learned that March had been a “great” month financially.
Belying the dark clouds gathering from an approaching storm, chief financial officer Thom Cook told board members that last month's numbers were the brightest so far this year, with the hospital showing an almost 11 percent net margin.
Even when discounting the more than $1 million hospital investments accrued as the stock marketed rebounded, Good Samaritan still showed a better than 6 percent operating margin.
“The numbers are better than groovy — they're great,” Cook said.
He pointed to another month of strong outpatient numbers as driving the revenue growth.
Plus, department heads had again held down expenses.
“We're seeing continued, strong growth (in outpatient numbers) and that growth is running ahead of accompanying increases in our expenses,” Cook said. “That's excellent, those are very good ratios to have.”
The great financial month also moved the hospital ahead of budget for the year.
A portion of the revenue can be traced to Good Samaritan's new trauma center. Dr. David Purdom, director of the center and a surgeon, briefed board members on the success of the program, calling it a “tremendous success.”
Purdom said not only are trauma patients staying close to home following an accident and saving money, the hospital is also making money treating them.
Before the state began pushing for the expansion of Level III trauma centers, a large part of Southwestern Indiana (especially the area within a 60-mile radius of Good Samaritan Hospital) were in what Purdom called “a dead zone.”
Getting the required care at a Level III trauma center usually meant a helicopter ride to Evansville — and having $30,000 added to the patient's medical bill, he said.
“Most of them go home the same day,” Purdom said. “So you can imagine being in an accident where the treatment allows you to go home that day but you still have to pay for that $30,000 chopper ride.”
But since Good Samaritan implemented plans and developed its own qualifying center, that's all changed.
“We've totally flipped the script,” Purdom said.
Now, 83 percent of trauma patients are being treated close to home at Good Samaritan Hospital, he said.
“They're being treated here and they're not paying that extra $30,000,” Purdom said. “It's a tremendous savings for the patient.”
That's also important for the hospital in that it means more revenue.
Cook pointed out that it was another example of how the hospital's having “nationally recognized, quality” programs relates to stronger financial health.
“You have that reputation for top-notch programs and it literally pays off,” he said.