Nevada hospital profits fall 38 percent

Thursday, Oct. 29, 1998 | 10:50 a.m.

CARSON CITY -- While medical costs are rising nationally, hospital profits in Nevada plummeted to $47.8 million in fiscal 1998, down 38 percent from the prior year.

Nine of the state's 10 rural hospitals operated in the red.

Valley Hospital Medical Center in Las Vegas emerged as the best money-maker, reporting earnings of $19.2 million, but that was still $2.7 million less than 1997. Valley succeeded Columbia Sunrise Hospital Medical Center, which traditionally held the top spot.

The profit and loss figures were compiled in a report released Wednesday by the state Division of Health Care Financing and Policy.

Columbia Sunrise, which was locked in a battle over union organizing and is under investigation by the state Attorney General's Office, saw its net operating income fall from $30.9 million in 1997 to $16.5 million in the last fiscal year which ended June 30.

Ann Lynch, spokeswoman for Columbia Sunrise, said the controversies had no impact on the profit. The hospital is still serving the same number or more patients than in the past. But she said, "The reimbursements are tough," and the cases are more severe.

Payments for treating patients under Medicare were lowered. And contracts between Columbia and groups for medical care have resulted in reduced rates.

Stacy Jennings, acting president of the Nevada Association of Hospitals and Health Systems, said the federal balanced budget act of 1997 led to a reduction in reimbursement for Medicare patients. "When you make a cut in that program, it significantly impacts the rural provider," she said.

In some rural hospitals, 50 percent of the patients are on Medicare. Another part of the problem, Jennings said, was the state health insurance plan in which payments to hospitals, doctors and other medical professionals were delayed up to one year.

How other hospitals did:

--MountainView Hospital, Columbia Sunrise's sister in Clark County, posted a loss of $452,806 for the fiscal year.

--Desert Springs Hospital in Las Vegas posted profits of $6.1 million, up about $168,000.

--University Medical Center, operated by Clark County, posted $651,320 in net operating revenue, down from $2.4 million the previous year.

--St. Rose Dominican Hospital in Henderson reported a net operating income of $3.1 million for the last fiscal year.

--Summerlin Hospital Medical Center registered a $4.6 million loss.

--Lake Mead Hospital Medical Center in North Las Vegas registered a profit of $2.2 million.

--Boulder City Hospital has profits of $295,791.

Jennings said hospital expansions are on the horizon in Las Vegas. "Like many industries we're coping with population growth," she said. St. Rose Dominican Hospital in Henderson is building a second hospital and MountainView is looking at bed expansion.

The report said revenue per admission, the amount consumers pay, increased from $6,364 in 1997 to $6,770 in 1998, a gain of 6 percent. But the profit per admission fell from $423 to $208 in fiscal 1998.