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August ’19 Message from the CEO

Henry County Health Center | August 30th, 2019

Greetings everyone.  I hope you have had an enjoyable remainder of your summer.  Hard to believe we are entering the fall season!


I would like to review with you the health center’s performance this past fiscal year.  We achieved many of our organizational goals.  The health center’s patient satisfaction and quality performance continues to have high performing outcomes.  Our most recent CMS hospital star rating report has HCHC as a four star (5 star is the best) hospital for both patient satisfaction and overall quality.  The 30 day readmission rate from the health center hit our targeted goal for the year and continues to be below our peer group and statewide average.  The health center’s employee turnover rate was our lowest in the last three years.  Overall patient procedures/volume grew by 3.5% from the year prior.  These outcomes demonstrate the tremendous work our associates and medical staff deliver each and every day.


Unfortunately, the health center’s financial performance on the income statement was significantly challenged.  Despite increasing gross patient revenue by 6.3% and an increase in operating expenses of only 2% from the prior year, this performance was all negated with having nearly 70% of our patient revenue coming from Medicare and Medicaid.  Payments from these two governmental payers do not cover the costs to provide services.  Our challenges have worsened since the start of the Iowa Medicaid MCOs in April 2016.  At the end of fiscal year 2016, the percent of the health center’s revenue that was from Iowa Medicaid was 13%.  At the end of this past fiscal year (June 30, 2019), the percent of the health center’s revenue that was from Iowa Medicaid and the Medicaid MCOs was over 20%.


Thankfully, the health center’s balance sheet remains strong at this time.  Financial indicators from the balance sheet still are performing better than benchmarks.  However, we will need to continue to examine how the health center can further reduce operational expenses and examine all service lines for sustainability with having such a high percentage of the health center’s patient revenue coming from governmental insurances.  These same challenges are impacting rural hospitals in Iowa as well as our nation.


The health center has also continued with further planning to update its inpatient/outpatient pharmacy, central sterile services and renovation to 2000 medical office suite.  The construction design phase of the design process has been complete and was taken to the Board of Trustees for review and approval.  The Board of Trustees approved the project to be sent out to bid.  The bid opening is scheduled for September 19, 2019, and the Board of Trustees will consider the bids on September 26, 2019, at their scheduled board meeting for September.


Thanks again for taking the time to read our e-newsletter.  Please make sure to look at the current newsletter to review the different events that will be occurring here at the health center that you may find benefit from.  As always, I hope you find it informative and helpful for your health care.  If you should happen to have any questions, please feel free to contact Shelley Doak or myself and we will be happy to follow up with you.