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Luis Hospital in British Virgin Islands to raise rates, explore downsizing
– Reported, February 11, 2012
“The financial situation of the hospital continues to be under stress,” Chief Executive Officer Jeff Nelson told the hospital board during its regular meeting Wednesday night.
The board took several steps to deal with the situation, including raising rates effective March 1.
The V.I. Office of Management and Budget informed Luis Hospital on Dec. 1 that its General Fund appropriation would by reduced by $667,403. Luis officials received another notification dated Jan. 1, informing them that the allocation would be reduced again by that same amount, Nelson said.
That means that instead of the $20.5 million the hospital was expecting to receive from the General Fund, it will be working with $19.2 million instead, Nelson said.
General Fund appropriations and patient revenues are the chief sources of income for the territory’s hospitals.
In addition, Nelson told the board that he anticipates the pending closure of HOVENSA’s refining operations will result in a major hit to the hospital’s net revenues, reducing them by least $3.5 million per year.
“We now have to explore all possibilities,” said hospital board chairwoman Kye Walker.
Based on recommendations from its Finance Committee, the board voted on Wednesday to:
– Allow administrators to increase the rates the hospital charges for rooms and services to levels that match the rates Schneider Regional Medical Center on St. Thomas charges.
“The idea is to bring us up to par with Roy Lester Schneider,” said Finance Committee chairman Wallace Phaire.
Nelson said after the meeting that the percentage by which the rates would increase would vary, but that the adjustments will result in rate increases of at least 10 percent.
– Directed management to look at staff composition and to come back to the board with recommendations.
“We are going to have to size the organization to accommodate the loss in revenue,” Walker said after the meeting.
Nelson and Walker both stressed that no decisions have been made.
“There have been no lists made, no final decisions made,” Nelson said.
– Directed management to provide the board with information about alternatives to the hospital’s current operations, including possible joint ventures and contracting with different entities to improve the hospital’s financial situation.
A number of physicians have approached hospital managers about potential options, and officials will explore them and return to the board with information, Nelson said after the meeting.
In addition to Luis Hospital’s financial situation, discussion at the meeting also focused on the steps staff is taking to meet the mandates of a settlement agreement with the Centers for Medicare and Medicaid Services
Credits: BY JOY BLACKBURN (DAILY NEWS STAFF)
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