The economy is being blamed for a drop in inpatient admissions at University Physicians Healthcare Hospital at Kino, a new county report says.
The report, from Pima County Administrator Chuck Huckelberry, evaluates the status of a merger between University Medical Center Corp. and University Physicians Healthcare. Huckelberry says joining forces will be cost-effective in the long term, though the sluggish economy and state health-care cuts are immediate challenges.
The two entities joined to form UA Healthcare Inc. this summer and in doing so became one of the top employers in Southern Arizona. The merged entity has about 6,000 employees and two hospitals - University Medical Center (UMC) and University Physicians Healthcare Hospital at Kino (UPH Hospital at Kino).
UPH Hospital at Kino has seen a 7 percent decrease in inpatient admissions in the past fiscal year from 2008 and 2009 levels, the report says. The drop is consistent with national trends, Huckelberry says. More people losing jobs and often going without health insurance means more people are also opting to postpone elective or non-emergency procedures, officials say.
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The hospital needs to increase its patient census by 21 percent "to achieve optimal service viability as budgeted in fiscal year 2011," the report says.
"UMC is experiencing the same reduced census phenomenon, and the leadership teams are working together to develop rebranding and marketing strategies to address the need for patient volumes," the report says.
UMC officials stressed that their overall patient volumes were up in the last fiscal year, but that due to the economy they did not meet their targeted patient volumes.
Also down at UPH in the 2010 fiscal year, which ended June 30: emergency department and urgent care visits dropped 2 percent, and total surgical procedures were down 10 percent from the previous year. Clinic visits were up by 33 percent.
Overall patient volume at UPH Hospital at Kino went up 75 percent between 2005 and 2010, the report says. And despite the economy, Huckelberry says revenues have increased at UPH at Kino. The county report attributes that to favorable renegotiation of payer contract terms and conditions, among other things.
"I anticipate this integrated health-care system will not only enhance the community work force, but will also expand services to better address the overall community health-care needs," Huckelberry wrote of the merger.
"This is particularly critical in geographic locations federally designated as medically underserved and health professional shortage areas, which surround the Kino campus, as well as rural areas."
The county Board of Supervisors received the report Monday. Kevin Burns, the interim CEO of UA Healthcare Inc., and Dr. William Crist, the University of Arizona's vice president for health affairs, are scheduled to give a presentation about UA Healthcare on Sept. 21.
Other highlights in the report:
• Assuming the economy recovers and budget expectations are met, plans for UPH Hospital at Kino include recruiting 95 doctors in 23 specialties over the next two years.
• Discussions are under way to house Tucson-based Critical Path Institute (C-Path) on the UPH Hospital at Kino campus. C-Path is an independent nonprofit that aims to enable drugs, medical devices and biological products to reach patients faster and with greater safety.
• The UA and the Carondelet Health Network are forming a diabetes treatment and prevention alliance to unite resources and better address the significant impacts of diabetes and obesity in Southern Arizona.
• UPH Hospital at Kino may have a name change. The suggestion: The UA Medical Center at Kino.
• For the first time in its six years of operating the hospital at Kino, UPH management reported an operating gain of $2.3 million in the 2010 fiscal year - that figure is after a $25 million county contribution, as well as about $4.5 million in federal funds.