“Is that hospital always going to be a money pit?”
A couple of weeks ago I was asked that question by a friend who happens to be a state representative from another county. This was only a few days after the legislature voted to give Highland Hills $1.5 million. I told him no, but I wanted better info than what I gave him, so I went to the guy I thought would have the best answers, Highland Hills administrator Josh Hammons.
I first met Josh a couple of years ago when Delta Health System owned what is now Highland Hills. He was the guy painting in the main lobby. He was also the guy recruiting staff, checking in shipments of supplies, moving boxes, meeting with city and county officials, and trying to balance the books.
Today, he’s still doing all of those things. The biggest thing that’s changed is that Delta Health is no longer in the picture. As of May 1, 2023, Highland Hills is owned by Tate County.
I asked Josh the same question, will this hospital always be a money pit?
According to Josh Hammons, the answer is a resounding no. Over the next hour and a half, he explained why that was so.
He pointed out some of the obvious things like expanded outpatient services. Nurse Practitioner Kent Hawkins has a clinic inside the hospital building. Patients can see a provider, then walk down the hall for any needed labs or x-rays. Not only is this convenient for patients, it also gets results back to Kent a lot faster than sending samples and patients elsewhere for studies, plus it generates revenue for Highland Hills instead of some other lab. The clinic is getting busier. So is the updated women’s center, which now sees about 60 patients each month.
More patients translates to more revenue and greater financial stability now and in the future. More patients are also being treated in the emergency department. 1250 people visited the ER in December. That’s 1250 who didn’t have to go to Memphis or Desoto County for treatment.
What’s the plan going forward? Expand services. Build on the current plan of mixed inpatient and outpatient care. Add specialty consultants who see Highland patients either in person or via telemedicine. Bring in more practitioners. Update the physical plant. Some of the $1.5 million appropriated by the legislature will go to a remodeled surgery department. Some will go to a new emergency electrical generator. Some will go toward OB-GYN and other services.
Some of that money, and the $8.5 million just approved by Congress, will go to the things nobody thinks about. Highland Hills is an older building. Updates are needed to the electrical and HVAC systems. High on Josh’s list of wants and needs is a dedicated helipad area. Currently, helicopter landings require clearing a parking lot. If I need a helicopter, I don’t want to wait for a visitor or patient to move their car.
One of the biggest challenges Highland Hills faces is timely reimbursement from insurance companies. Don’t ever make the mistake of thinking insurance companies exist to enhance patient care. They don’t. They exist to make money for their investors. Think of insurance companies as bookies. They take your money. You’re betting that you’ll get sick. The insurance companies are betting your care will cost less than what you pay in, plus the money they make investing what you pay in premiums. The longer they hold on to money, the more interest they make off that investment. Delaying or refusing claims from providers increases insurance company profits.
Highland is getting better at collecting what insurers owe. Total collections have improved from roughly 12% during the Delta Health era to just over 24% as of March 1. Based on the recent average monthly billing of around $3.2 million, a collection rate of around 28% should be the break-even point. Anything above that is gold.
Here's my question, is it still a money pit if there’s a pot of gold at the bottom?
