A Channel 9News report that aired Monday saying Estes Park Health (EPH) was at immediate risk of closing was not accurate, said David Batey, chair of the EPH Board of Directors.
“We are not at risk of closing.” Batey said early Tuesday morning in an interview with the Estes Valley Voice. “We have 114 days of cash on hand; two times as much cash on hand as debt.”
9News used information from a study released by the Center for Healthcare Quality and Payment Reform (CHQPR), a national policy center focused on designing and implementing healthcare payment and delivery systems reforms, which showed Estes Park Health as one of six hospitals in Colorado most likely to be at risk of closing due to financial losses that cannot be covered by its assets.
The study results first were reported yesterday by Analisa Romano in the Denver Business Journal then repeated on Denver’s 9News.
“I wish they’d read the report, instead of just the headline” from the Journal’s story, Batey said. While noting that CHQPR is a credible organization, its reliance on data from Medicare does not tell Estes Park’s story, he said. The end of the CHQPR report says small hospitals can receive relief through avenues such as property taxes.
“We receive $4.5 million in property taxes.” Without that support, Batey said the situation for Estes Park Health would be much different. At the end of 2023, facilities were just emerging from the effects of COVID. This year the medical center has budgeted for a surplus, he said.
“And, we’re on track to be on budget,” Batey said.
According to the Denver Business Journal, data from CHQPR shows 14 rural Colorado hospitals have lost money on patient services every year for three years in a row. Estes Park is in the top six on that list, indicating that its losses make it one of the most likely to close.
Data from the CHQPR show at the end of 2023 Estes Park Health had total expenses of $66,107,424 which was 6.7% less than patient services cost. The 2023 EPH audit presented to the board of directors on May 29 showed total actual expenditures of $63,338,055 and an operating loss of $10,961,595.
The CHQPR report dealing with rural hospitals’ financial plights is one of the organization’s focal points to highlight the need to revamp how payment systems currently used by Medicare and health insurance plans make it difficult or impossible for healthcare providers to deliver high-quality, affordable care to patients.
The organization collects data about each hospital’s net assets and averages quarterly data over a three-year period to capture the latest fiscal year reports for each facility, before applying a formula to account for pandemic aid.
In 2023 at Estes Park Health, nearly half of patient service revenues – 49% – were derived from third-party payors (insurance companies); 36% were from Medicare, 13% were from Medicaid, and 2% of patient revenues were self-pay.
According to Batey the medical center’s financial report for the second quarter – April-May-June – will be presented during the regular monthly meeting of the board at 5:30 p.m. on Aug. 28 in the board meeting room at Estes Park Town Hall.
98% of EP patients have Commercial Insurance, Medicare, or Medicaid…
2% EP patients are “self pay” (or possibly indigent). With Property Tax augmenting the EP Health System… How can this hospital NOT be doing quite well and NOT need to be absorbed by a larger hospital system [UCH or the like]? A 98% insured population should be able to maintain its own independent system.
Joining a larger hospital system will simply siphon our property tax dollars out of Estes Valley.
Independent patient referrals (98% insured) to higher levels of care will continue to be welcome anywhere (Fort Collins, Loveland, Longmont, Boulder). Joining a larger system obligates referrals to that system which can limit patient choices.
Populations demographics in Estes Valley should drive EP Heath concerns, This middle age – elderly well insured population needs attention to home health, long term care, and hospice, just the services that have been abandoned by the current regime.