REBUTTAL HEALTH ADMIN

Please write a 200 word response in AMA format with 2 references. Thanks you

 

St. Joseph’s Hospital is a nonprofit organization providing rural healthcare in Buckhannon, West Virginia. The Pallottine Missionary Society immigrated to the United States as early as 1912, passing the wreckage of the ill-fated Titanic on their voyage.1 The primary goal of this society was to provide necessary medical care to underserved regions. St. Joseph’s Hospital was founded on February 15, 1921, and operated by the Pallottine Sisters until its acquisition by United Hospital Center and West Virginia University Medicine in 2015.1 The hospital continues to serve the rural population of north-central WV. In 2019, St. Joseph’s was recognized as one of the top 100 critical access hospitals in the United States.2 This organization is the only hospital within 15 miles of Buckhannon, WV, which allows for their critical access status. Critical access allows for higher reimbursement from insurance payers. In recent years, the critical access status has been in jeopardy as Mon Health, Stonewall Jackson Memorial Hospital moves to build a new facility less than 12 miles from St. Joseph’s.3 If this critical access designation is lost, St. Joseph’s could suffer detrimental consequences. CEO Skip Gjolberg estimates these losses to be between $3-4 million annually, and litigation has begun to protect the facility’s critical access status.3 This facility was chosen due to this potential loss of revenue as this author’s employer. As this organization is a nonprofit, an IRS form 990 was utilized to complete this financial analysis.

         As a nonprofit, St Joseph’s Hospital reported total revenue of $91,224,270 in 2021, with $13,436,341 reported as profit minus expenses.4 This excess revenue includes all salaries, employee benefits, operational costs, contributions, and grants paid out during the fiscal year.  The overall assets at the end of the fiscal year were $76,723,048, with total liabilities of $32,567,019.4 Thus, St. Joseph’s Hospital had a total of $44,156,029 in net assets at the end of 2021. The highest-paid position within St. Joseph’s is one of the general surgeons. In 2021, Dr. Susan Long received a total of $786,761 in reportable compensation with an additional $42,055 in other compensation.4 Ranking in order of earnings, the CEO Ivar “Skip” Gjolberg was the 6th highest paid employee of the nonprofit. His gross earnings were reported as $349,644 in actual compensation, with 468,721 in other compensation from the organization.4 Employed physicians held the top 9 highest earning positions except number 6, which was the CEO.

         An evaluation of the past 3 years shows significant growth within St. Joseph’s Hospital regarding revenue. In 2019 a total revenue of $71,620,100 and $7,264,239 net revenue were reported.5 At the end of the 2020 fiscal year, total revenue was $77,330,909, with net revenue of $12,924,090.6. These figures show a significant upward trend in revenue for this organization.

         While the upward trend in revenue can be perceived as beneficial, should this facility lose its critical access status, a substantial decrease in revenue can be expected. Given that St. Joseph’s Hospital is a critical access rural hospital, should Mon Health, Stonewall Jackson Memorial Hospital obtain their certificate of need and build a facility within the 15-mile radius, St. Joseph’s will have to explore avenues to recoup the lost revenue.

 

References

1. St Joseph’s Hospital About US. WVU Medicine. Accessed May 29, 2023. https://wvumedicine.org/st-josephs-hospital/about-us/

2. Wharton, L. St. Joseph’s Hospital named one of the top 100 critical access hospitals in the nation. February 28, 2019. Accessed May 29, 2023. https://wvumedicine.org/news/article/st-joseph-s-hospital-named-one-of-top-100-critical-access-hospitals-innation/

3. St. Joseph’s Hospital files objection to Mon Health’s plan to build new Stonewall Jackson Memorial Hospital. WV News. May 29. 2021. Accessed May 29, 2023. https://www.wvnews.com/news/wvnews/st-josephs-hospital-files-objection-to-mon-healths-plan-to-build-new-stonewall-jackson-memorial/article_d67132cc-0ec6-5f3e-8f7c-24c09a2e457c.html

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