Lack of patients hurts Gulf Coast healthcare revenues

One major issue for Gulf Coast healthcare providers is the vast number of patients who relocated to safer ground before, during, and after Hurricane Katrina, and who have not returned to their communities. With lower patient volumes, and residents with less money to spend for healthcare, revenues have declined for all practices and healthcare facilities.

For Waveland Medical Center in Waveland, MS, its now-former patients -- approximately 75% of whom are geriatric -- are spread from New York to Texas to California, taking now-permanent residence with family.

Prior to Katrina, office manager Lynn Murray estimated that Waveland had 5,000 active patients charts. Today, that total is closer to 400. "To this day, we still have about 50% of our practice living in FEMA trailers one year later," she added. "We have to go through steps and steps, and everyone is still waiting on loans and grant money. Everyone is still playing the waiting game."

East Jefferson General Hospital (EJGH) in Metairie, LA, has lost an estimated $35 million in operating revenues since Katrina. The hospital recently settled its business interruption claim so that money will begin to arrive, but EJGH is still losing "a couple million dollars a month because of the change in reimbursement," said Ricky Stonicher, director of director of radiology and radiation therapy.

The state of Louisiana runs a charity hospital system, and with the largest of those hospitals in New Orleans, which flooded, those patients are seeking charity care at community hospitals.

EJGH's indigent patient care load increased from less than 2% before Katrina to as high as 15% in the aftermath. The current level of charity care is approximately 10%. EJGH is reimbursed approximately 40 cents for every dollar of charity care. "So, we lose money on everyone we deal with and that hasn't changed," Stonicher said.

By Wayne Forrest
AuntMinnie.com staff writer
August 29, 2006

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