Greeneville Community Hospital Opposition to HealthStar Imaging - - PowerPoint PPT Presentation

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Greeneville Community Hospital Opposition to HealthStar Imaging - - PowerPoint PPT Presentation

Aug 14, 2022 182 likes •360 views

Greeneville Community Hospital Opposition to HealthStar Imaging CN1912-056 June 23, 2020 MRI Locations in HealthStar Imaging Proposed Service Area Proposed HealthStar MRI CT Hawkins Ultrasound X-ray Mammography

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SLIDE 1

Greeneville Community Hospital Opposition to HealthStar Imaging – CN1912-056

June 23, 2020

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SLIDE 2

MRI Locations in HealthStar Imaging Proposed Service Area

2

Hawkins Greene Cocke Hamblen

Ballad HealthStar Other Providers GCH West

  • MRI
  • CT
  • Ultrasound
  • X-ray

GCH East

  • MRI (2) – Open and Closed
  • CT
  • Ultrasound
  • X-ray
  • Mammography
  • Bone Density

Proposed HealthStar

  • MRI
  • CT
  • Ultrasound
  • X-ray
  • Mammography
  • Bone Density
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SLIDE 3

Net Revenue Impact for Key Service Lines

As a result of covid-19 there has been a significant reduction in volumes in key service lines. The volume reductions that have

  • ccurred over the past two months have ranged between 20-40%

below the prior four month average run-rate. Further, as a result of reduced volumes, the facility has produced significantly less revenue during this time period.

April-May % Diff Two Month Revenue Impact Discharges

  • 20%

(1,007,920) OP Surgery

  • 39%

(600,496) OP Emergency

  • 35%

(834,768) OP Imaging

  • 39%

(1,232,985) Total ($3,676,169)

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SLIDE 4

Unemployment Rates for Greene County

Unemployment rates have increased sharply over the past 60 days from a 4.3% to 17.1% in Greene County. The percentage point increase year-over-year has increased 13.4%. The Greene County unemployment rate is 2.4% higher than the state rate for the month of April.

Source: https://www.tn.gov/workforce/tennessee-economic-data-/labor-force-statistics/unemployment-rates.html

17.1%

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SLIDE 5

Charity Care and Bad Debt

This graph details the allowances for bad debt and charity care for FY19 and FY20 YTD May Annualized. The annualized combined total for bad debt and charity for FY20 is expected to be $15,184,217 which is 48% greater than the prior year. There is a year-over-year increase in the total self-pay payor mix of 0.71% which is a large portion of the additional bad debt and charity allowances.

5.5 7.6 4.8 7.6

$0 $2 $4 $6 $8 $10 $12 $14 $16

FY 2019 FY 2020 YTD May Annualized

Millions

Contra Revenue Charity and Bad Debt Charity $10.3 Million Total $15.2 Million Total

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SLIDE 6

Greene County Consolidated Financial Performance

FY 2019 FY 2020

Feb Annualized

FY 2020

May Annualized

Total Operating Revenue 111,946,012 109,361,444 100,229,633 Total Operating Expenses 122,488,291 110,781,303 106,479,642 Net Operating Income

Before Support Allocation

(10,542,279) (1,419,859) (6,250,009)

Impact of COVID-19

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SLIDE 7

Greene County Consolidated Financial Performance

FY 2019 FY 2020

Feb Annualized

FY 2020

May Annualized

Total Operating Revenue 111,946,012 109,361,444 100,229,633 Total Operating Expenses 122,488,291 110,781,303 106,479,642 Net Operating Income

Before Support Allocation

(10,542,279) (1,419,859) (6,250,009) Impact of $2.9 Million Net Income Loss to HealthStar* (4,319,859) (9,150,009)

Note: Impact of Net Income Loss to HealthStar calculated assuming 75% of the net income projected in year 1 of the HealthStar project would come from imaging studies that would have otherwise been performed at Greeneville Community Hospital

Impact of COVID-19

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SLIDE 8

Proposed Project Charity Care Comparison

$77,133 $240,596 $18,129 $50,890

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000

HealthStar Greeneville Community Hospital

Total Project MRI

Source: Each project’s respective CON Application 8

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SLIDE 9

Proposed Project Payor Mix Comparison

Medicare/Medicare Managed Care

52%

TennCare /Medicaid

9%

Commercial/Other Managed Care

38% Self Pay 1%

HealthStar

9

Medicare/Medicare Managed Care

52%

TennCare/ Medicaid

13%

Commercial/ Other Managed Care

25%

Self Pay

10%

Greeneville Community Hospital

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SLIDE 10

Service Area MRI Utilization

HSDA Standard - 2,880 Current Average - 1,589 500 1,000 1,500 2,000 2,500 3,000 3,500

Newport MC GCHE GCHW HealthStar Hamblen Morristown-Hamblen Lakeway RH Hawkins Co. MH

Average MRI Scans per Unit - 2018

Series 1 HSDA Standard Current Average

Source: HSDA Medical Equipment Registry Note: Hawkins County Memorial Hospital average based off of service 2 days per week 10

Current average is 59% of the Need Standard

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SLIDE 11

Proposed Service Area Population

Source: https://www.tn.gov/content/tn/health/health-program-areas/statistics/health- data/population.html 11

From page 22 of HealthStar CON Application:

69,382 35,303 64,906 56,622 66,217

20,000 40,000 60,000 80,000 100,000 120,000 140,000 Greene Cocke Hamblen Hawkins

Population by County

Population Overstated

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SLIDE 12

MRI Locations in HealthStar Imaging Proposed Service Area

12

Hawkins Greene Cocke Hamblen

Ballad HealthStar Other Providers GCH West

  • MRI
  • CT
  • Ultrasound
  • X-ray

GCH East

  • MRI (2) – Open and Closed
  • CT
  • Ultrasound
  • X-ray
  • Mammography
  • Bone Density

Proposed HealthStar

  • MRI
  • CT
  • Ultrasound
  • X-ray
  • Mammography
  • Bone Density
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SLIDE 13

Greeneville Community Hospital ODC CN2001-001

June 23, 2020

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SLIDE 14

MRI Locations in GCH ODC Proposed Service Area

14

Greene Cocke Hamblen

Ballad HealthStar Other Providers GCH West

  • MRI
  • CT
  • Ultrasound
  • X-ray

GCH East

  • MRI (2) – Open and Closed
  • CT
  • Ultrasound
  • X-ray
  • Mammography
  • Bone Density
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SLIDE 15

Service Area MRI Utilization

HSDA Standard - 2,880 Current Average - 1,589 500 1,000 1,500 2,000 2,500 3,000 3,500

Newport MC GCHE GCHW HealthStar Hamblen Morristown-Hamblen Lakeway RH Hawkins Co. MH

Average MRI Scans per Unit - 2018

Series 1 HSDA Standard Current Average

Source: HSDA Medical Equipment Registry Note: Hawkins County Memorial Hospital average based off of service 2 days per week 15

Current average is 59% of the Need Standard

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SLIDE 16

Greene County Consolidated Financial Performance

FY 2019 FY 2020

Feb Annualized

FY 2020

May Annualized

Total Operating Revenue 111,946,012 109,361,444 100,229,633 Total Operating Expenses 122,488,291 110,781,303 106,479,642 Net Operating Income

Before Support Allocation

(10,542,279) (1,419,859) (6,250,009) Impact of $2.9 Million Net Income Loss to HealthStar* (4,319,859) (9,150,009)

Note: Impact of Net Income Loss to HealthStar calculated assuming 75% of the net income projected in year 1 of the HealthStar project would come from imaging studies that would have otherwise been performed at Greeneville Community Hospital

Impact of COVID-19