Over $30 Million Last Year in Uncompensated Care, Services, Programs

Mercy Medical Center—Sioux City provided more than $30 million in community benefits to the Siouxland region, according to an assessment of those programs and services completed late last year. That amount, based on Fiscal Year 2005 figures, included a broad array of programs and services designed to improve health status and increase access to health care.

Beyond what hospitals refer to as “charity care,” Mercy’s programs and activities for populations at risk take the form of services provided without reimbursement, the donation of time, resources and talent by many of Mercy’s employees and, on occasion, direct donations or grants to specific community programs.

Among the many programs that benefited populations at risk were discounted laboratory testing and services, support for Meals-on-Wheels and local food pantries, Mercy’s Medicaid Assistance Program, transportation services for the disabled and support for agencies serving those in need — like the Mary Treglia House and the Council on Sexual Assault and Domestic Violence.

Mercy’s total cash and in-kind commitments specifically for populations at risk in its last fiscal year totaled nearly $1.3 million. Additionally, Mercy provided $2.5 million worth of charity care at cost.
In addition to its assistance to those who are most vulnerable, Mercy Medical Center’s Community Benefit Ministry for the broader community in the last fiscal year contributed nearly $1.6 million to programs, grants and activities that served the community at large. Support for the Mercy Child Advocacy Center, which provides leadership in a community-wide effort to combat child abuse, and important community screening and education programs, were a large part of that effort.

“Mercy also supported free monthly educational programs to foster positive health practices in the broader community,” according to John Brehany, director of Mission Services and Ethics at Mercy. “Programs and activities in this category of support included babysitting and breastfeeding classes, diabetes and cholesterol screenings and first-aid and safety classes – to name a few.”

“Mercy also supports the Graduate Medical Education program, which gives medical residents the chance to complete their training and provides additional medical resources for Siouxland. The hospital’s contributions to education and research-related endeavors last year totaled nearly $600,000,” Brehany added.

Mercy Medical Center also provides a large amount of uncompensated care to the community by absorbing the shortfalls in the government-funded programs of Medicare and Medicaid.

“Iowa suffers from the lowest Medicare reimbursement rate in the country,” Brehany explained. “This has a significant impact on hospitals and providers. Mercy’s shortfall from Medicare last year was $13.4 million. The hospital’s Medicaid shortfall was more than $3.6 million.”

“Mercy continues to provide the highest quality medical services despite these shortfalls,” Brehany emphasized. “Significant reforms to these government programs are required. It is still an issue that should very much concern our whole community and state.”

When you combine the impact of programs and services, charity care, bad debt, and shortfalls in Medicare and Medicaid, Mercy’s total benefit to the regional community carried a monetary value of more than $30 million from July 1, 2004 to June 30, 2005.

Mari Kaptain-Dahlen, Mercy’s interim president and CEO, said the hospital’s Community Benefit Ministry reflects its long-standing mission.

“Everything we do is shaped by our mission, vision and values,” she said. “In addition to taking care of patients, we exist to serve the whole community, particularly the area’s underserved population. Our role as a servant leader in the community, and our dedication to compassionate service to others is an extraordinarily important part of Mercy’s identity.”

The results for Mercy are included in a statewide report by the Iowa Hospital Association (IHA) that shows Iowa hospitals provided more than $393 million in community benefits during 2004. That figure includes more than $217 million in uncompensated care and $59 million in free or discounted programs and services that hospitals offered to help the communities they serve.

“When community benefit programs are threatened, then so is access to health care for thousands of Iowans,” said Kirk Norris, IHA President/CEO. “These kinds of programs are not likely to be offered by any entity other than a community hospital. Without Iowa’s 117 community hospitals offering this type of service, demand for tax-support programs to provide the same services would be greater.”

Detailed information regarding Mercy’s Community Benefit Ministry is available on the hospital’s Web site, www.mercysiouxcity.com.

The IHA hospital community benefits report, “Opening Doors: How Hospital Community Benefits Count in Iowa,” is available on-line at www.ihaonline.org or by calling (515) 288-1955.