Hospital costs likely to rise

From an employer’s standpoint, health care reform will increase costs for Jay County Hospital.
Human resources director Jerry Bozell gave a focused presentation to the Jay County Hospital Board of Trustees about how the health care reform bill passed in March will affect the hospital from the employer’s side.
Bozell told the board that several provisions of the health reform bill will begin to take effect September 23 and the rest will be phased-in through 2018.
The main point of the presentation was that, as an employer, health care reform will hurt the hospital’s bottom line.
“We know it’s going to be painful from the employer standpoint because it’s going to increase our cost,” he said.
Some changes that the bill will bring is that the hospital will have to cover adult children without their own employer coverage to age 26.
Currently those children are dropped from their parent’s plans when they turn 19 or 23 if they are a full-time college student.
The bill also removes lifetime maximums — the maximum amount an insurance plan will pay for during the term the insurance is in place. Right now the hospital has a $1 million maximum in place.
“This could have a significant impact,” Bozell noted, since some employees who are not covered by the hospital insurance plan may choose to enroll.
The bill will also remove pre-existing condition limitations for children under 19 years old, another factor that could increase costs.
Even though the bill has not yet taken effect, Bozell said health insurance costs this year are already greater than 2009.
“Our health insurance costs are way up this year,” he said.
“(The reform bill) is going to build cost into our health plan,” he said, expecting it will add another 8 to 10 percent.
Although the health care reform bill may increase hospital cost from the employer side, the bill may also aid the hospital from the health provider side if greater insurance coverage for the population increases volumes.
In other business Wednesday, the hospital board:
•Heard the auxiliary report from auxiliary president Marilyn Post. In July 76 volunteers worked 1,124 hours.
•Heard the financial report from chief financial officer Don Michael. Michael reported the hospital experienced a net loss of $33,459 in July due in part to health insurance claims about $211,000 above expected values.
•Approved an agreement with MidAmerica Clinical Labs for lab specimen collection. The hospital receives income for providing the group with lab samples.
•Approved payment of 932 checks and disbursements totaling $1,742,729.77.
•Approved a contract with SSI Group to install “claims scrubber” software at a cost of $18,524 per year with a $4,500 initial setup fee. The software takes hospital billing and formats it to meet the requested criteria of different insurance agencies before mailing.
•Approved purchase of a Sysmex hematology instrument from LABSCO at a cost of $48,600. The machine will be a replacement for a seven-year-old piece of equipment. Hospital CEO Joe Johnston said the chemicals required to utilize the machine will also be significantly cheaper than the current machine.
•Approved a contract with John M. Hilty Construction to do concrete work at the hospital grounds at a total cost of $35,715. That work will include a turnaround for semi trucks at the back loading docks as well as other work.
•Approved two appointments and one reappointment to the hospital’s courtesy staff.
•Approved three reappointments to the Jay County Hospital Foundation board. Reappointed members were Dan Orr, Donna Haggenjos and Janet Bantz.[[In-content Ad]]