UMC’s deficit getting worse

Adrienne Packer

Thursday, Dec. 5, 2002 | 11:29 a.m.

As University Medical Center prepares to close two Quick Care clinics next week, Clark County administrators tracking the hospital's losses said the deficit is worsening.

The county hospital system's monthly debt has increased from an average of $2 million a month to $2.5 million, Clark County Manager Thom Reilly said. During a four-month period ending in October, UMC lost $11 million.

"Over the last few months it hasn't been getting any better; it's getting worse," Reilly said.

Last month commissioners agreed to shut down Quick Care clinics in Jean and on the Community College of Southern Nevada's West Charleston campus. The two facilities, which had the lightest patient load among UMC's network of 14 emergency clinics, are scheduled to close Dec. 13.

Meanwhile, high-priced consultants and auditors are picking apart UMC's books trying to identify the cause of the hospital's mounting debt.

In November the county agreed to a $37 million hospital subsidy for the hospital and $17 million was set aside to cover monthly losses while $20 million was channeled to UMC to pay off late bills. Clark County Finance Director George Stevens said the hospital owes pharmaceutical suppliers about $18 million in overdue bills.

UMC Chief Executive Officer Bill Hale blamed the deficit on an overwhelming number of uninsured patients taking up the hospital's beds. The hospital, required by state law to treat the indigent, has few beds remaining for paying patients.

County officials estimate there are 250,000 uninsured residents in Clark County.

If the proportion of uninsured patients increases consistent with the overall population growth, UMC will face even greater financial troubles, Stevens said.

"The size of the hospital is fixed," Stevens said. "If the population continues to grow as it is, you can get to the point where everyone in the hospital is uninsured."

The Lewin Group is studying the role of UMC's Quick Care clinics.

The centers dotted around the Las Vegas Valley were built as "feeder" facilities with the expectation they would channel patients to UMC, upping the hospital's revenue.

Since UMC is at capacity most of the time, Quick Care clinics have been forced to refer patients to private hospitals.

The medical center at the University of California, Los Angeles also has satellite clinics. Reilly said UCLA has a benchmark in place that if fewer than 90 percent of a clinic's referrals are to the main hospital it will open discussions about whether the clinic is worthwhile.

Reilly said because UCLA's 15 clinics are located closer to the medical center than private hospitals, they are successful.

The county has yet to pin down a referral percentage for UMC's Quick Care clinics, which are fully funded and operated by taxpayer money but providing business to private hospitals.

"We're going to explore the role of Quick Cares," Reilly said. "Maybe we should be running some of them, all of them or none of them. Our priority is to provide quality care and indigent care. Can we do all these things at the same time?"