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Letter of Intent to Sell

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									Washington Hospitals: A Few Facts


 • Frequently-requested information is
   presented in these slides.
 • Look in the “Notes” section below each
   slide for more detail.
 • More information about Washington
   hospitals is available on the Fast Facts
   page at the www.wsha.org website.
 • Questions?: contact Jane Feldman,
   janef@wsha.org.
                                         June 2008

Washington State Hospital Association   Health Information Program
    Washington has 95 community
          general hospitals


 • Washington also has 14 other
   hospitals, which include
      -- 4 private specialized services,
      -- 2 state-owned psychiatric,
      -- 4 U.S. military, and
      -- 4 U.S. Veteran Affairs hospitals



Washington State Hospital Association   Health Information Program
    Hospitals cluster in the Seattle,
     Spokane, and Tacoma areas




                                2                                       4
                           12

                                            2
                       4

               2




                                        2


                                                     2




                   2



Washington State Hospital Association           Health Information Program
Two hospitals have closed this year, and
       one will open next year

   •    Providence Health & Services closed Deer
        Park Hospital in March 2008.
   •    Group Health Cooperative ended inpatient
        services at its Eastside Hospital May 2008,
        and will move remaining services to other
        facilities by the end of the year.
   •    Franciscan Health System plans to open
        their new facility, St. Anthony Hospital in
        Gig Harbor, in early 2009.



  Washington State Hospital Association   Health Information Program
Hospital systems are restructuring

 •    Multicare Health System acquired Good
      Samaritan Community Healthcare in 2006,
      and Enumclaw Regional Hospital joined the
      Franciscan Health System in 2007.


 •    In June 2007, Empire Health Services signed
      a letter of intent to sell its two nonprofit
      Spokane hospitals to for-profit Community
      Health System, based in Pennsylvania.




Washington State Hospital Association   Health Information Program
Washington hospitals are relatively small

                                               Hospitals by Bed Size
 Most                   50
 Washington                      42
 hospitals              40

 have fewer
 than 100               30

 beds.
                        20                                17
                                             15
                                                                       12
                        10                                                          7

                                                                                                 2
                         0
                              0 to 49      50 to 99   100 to 199   200 to 299 300 to 399       400+

                                                      Available Beds
                      Data Source: Washington State Dept. of Health Hospital Fiscal Year-End Reports, 2006


   Washington State Hospital Association                    Health Information Program
          As the population has grown,
         available beds have decreased

                                         Available Beds Per 1,000 Population
Washington             3.00
is a                                     The 2006 national average is 2.7 beds per 1,000
consistently
                       2.50
top-ranked
                               2.14   2.14
state on                                     2.02   2.04   2.00    1.96   1.93
                       2.00                                                      1.87   1.88   1.86
measures of                                                                                           1.82   1.78

efficiency of
inpatient              1.50

care.
                       1.00
                              1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006


                      Data Source: Washington State Dept. of Health Hospital Fiscal Year-End Reports


   Washington State Hospital Association                          Health Information Program
Almost half of Washington hospitals are
         government owned

                                                 Hospital Ownership
Public
district
hospitals,                      Public
                               District                                                  Private
mainly rural,                  Hospital                                                Not for Profit
are                              = 42                                                       = 44

government
entities with
publicly
elected
boards.                                    State/
                                                                           For Profit =
                                          County
                                                                                7
                                            =2
                       Source: Washington State Department of Health Hospital Directory.


    Washington State Hospital Association                    Health Information Program
     Almost all inpatient beds are in
        not-for-profit hospitals
                                       Available Beds by Hospital Ownership
Public and
private not-                                                                           Private
for-profit                                                                           Not for Profit
                                                                                          69%
hospitals
account for
95 percent of
all                             Public
                               District
community                      Hospital
                                 19%
beds.
                                              State/                           For Profit
                                             County                               5%
                                               7%
                       Source: Washington State Department of Health Hospital Directory


    Washington State Hospital Association                   Health Information Program
  Thirty-nine of Washington’s hospitals are
         designated as Rural facilities

                                Rural and Critical Access Hospital Distribution
Most of
Washington’s
rural                                                                                   Critical
hospitals are                                                                         Access = 38
                                                                                         40%
Critical                Urban: Not
Access                    Critical
                        Access = 51
Hospitals                  54%
(CAH)
                                                                                  Rural: Not
                                                                                   Critical
                                                                                  Access = 6
                                                                                     6%

                      Data Source: Washington State Dept. of Health, Office of Community and Rural Health


   Washington State Hospital Association                    Health Information Program
    77 hospitals are designated by the
  Department of Health as trauma centers

                                          Hospitals Providing General Adult Acute Care Trauma Services
Level 1
                                         40
designates
                                         35                                             33
the most
                                         30
intensive
                        # of Hospitals
                                                                         25
                                         25
and skilled                              20
level of                                 15                                                      13
trauma                                   10
                                                             5
services                                  5
                                                 1
provided.                                 0
                                                 1           2            3             4        5
                                                                 Trauma Service Level

                      Source: Washington State Department of Health Office of Emergency Medical Services
                      and Trauma System


   Washington State Hospital Association                            Health Information Program
   33 Washington urban hospitals provide
     $629 million in community benefits

                                          Community Benefits, FY2006
For these
non-profit                                                                    Community Services
hospitals, the                                                                   $111 million

value of their                                                  18%
community
benefits was
far more than                                   82%
their $269
                         Low-Income
million in tax           Patient Care
exemptions.               Shortfalls
                         $518 million

                        Source: Washington State Hospital Association Community Benefits Inventory Report,
                        December 2007

    Washington State Hospital Association                    Health Information Program
 Out-of-state patients make up 3.5 percent of
             inpatient discharges

• The majority of                       Percent of Out-of-State Discharges
out-of-state
                                                                                Idaho
patients were                                                                   6,299
from the                                                                         29%

bordering states
of Oregon and                                                                       Alaska
                                                                                     2,265
Idaho.                                                                               10%
• Patients from                    Oregon
                                    7,300
Canada made up                      34%
                                                                                   Montana
                                                                                    1,402
just one percent                                                                     6%
of out-of-state
discharges and                             Other
                                                                        Other U.S.
just 0.04 percent                         Countries   Canada              States
                                             78
of total                                     0%
                                                        227               4,493
                                                        1%                 20%
discharges.              Data Source: Health Information Program Enhanced CHARS Inpatient file, CY2006


     Washington State Hospital Association                  Health Information Program
Out-of-state patients may be a large portion of
        a hospital’s inpatient business
     Top Ten Hospitals: Percent of Discharges for Out-of-State Patients
                                                   Percent of Hospital’s
    Hospital                                       Discharges                      Location
    Tri-State Memorial Hospital                              45.7                  Idaho Border
    Seattle Cancer Care Alliance                             39.8                  Seattle
    Newport Hospital & Health Services                       32.1                  Idaho Border
    Saint Mary Medical Center                                32.1                  Oregon Border
    Walla Walla General Hospital                             27.0                  Oregon Border
    Pullman Regional Hospital                                16.0                  Idaho Border
    Saint Luke’s Rehabilitation Institute                    11.0                  Idaho Border
    PeaceHealth Saint John Medical Center                    10.9                  Oregon Border
    Sacred Heart Medical Center                              10.7                  Idaho Border
    Deaconess Medical Center                                 10.5                  Idaho Border



   Data Source: Health Information Program Enhanced CHARS Inpatient file, CY2006


   Washington State Hospital Association                         Health Information Program

								
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