Annual Report 2010
2010: A year of celebration, expansion, and transition
Northfield Hospital CEO and President Mark Henke
Northfield Hospital Board of Directors 2010 John Lundblad, Chair Dixon Bond, Vice Chair Charles Austin Gina Franklin Michelle Muench, M.D. Brett Reese Randolph Reister, M.D. James Schlichting Curt Swenson
The organization that evolved into today’s Northfield Hospital & Clinics began in 1910 in a sprawling wood frame house on the corner of Water and Eighth streets in Northfield. This past year, we celebrated a century of service by supporting the community’s Vintage Band Festival, organizing a “centennial walk” from the old hospital to the new, and partnering with Cannon Valley Regional Orchestra in the fall for a concert dedicated to healing. The centennial provided an opportunity to reflect on where we’ve been and where we are headed as a community-based healthcare organization. We have successfully adapted to a new hospital and long-term care center campus, new medical services and new technology, and new physician clinics in neighboring communities. Through it all, the enduring theme has been our unwavering commitment to meeting the needs of our patients. With the increasing patient population we serve through our clinics in Lonsdale, Farmington, Lakeville and Northfield, we are now able to provide a broader range of specialty services. In 2010, Chris Nielsen, MD, joined Jose Fulco, MD, in his general surgery practice. They see patients at FamilyHealth Medical Clinic and Allina Medical Clinic and operate at Northfield Hospital. Neurologist Melinda Burnett, MD, and Otolaryngologist Gerard O’Halloran,
MD, also joined us during the year. Anne Pylkas, MD, joined Charles Reznikoff, MD, in the Opiate Agonist Clinic that resides in the Outpatient Department. In addition, Mayo Clinic Outreach expanded access to Mayo Clinic cardiologists by making them available five days a week, either on-site or through telemedicine at the FamilyHealth Medical Clinic in Northfield. As you can see, our physician partnerships continue to be a key factor in our ability to attract patients from all across our region. In 2010, several key leaders retired from service to the organization or completed their term of office: Ken Bank, CEO (21 years), Roger Stapek, CFO (30 years), John Lundblad, Board member and past Chair (17 years), and Curt Swenson, Board member and past Chair (9 years). These leaders helped shape the spirit and trajectory of Northfield Hospital & Clinics. They kept the organization’s commitment to authentic neighbor-to-neighbor, personalized care and ensured the financial stability of our organization for years to come. In November, we were fortunate to hire Tim Gronseth to serve as our Chief Financial Officer. Tim Gronseth is a seasoned professional with 25 years of experience in a wide range of healthcare finance leadership positions and he knows our service area well. Early Continued next page
Hospital progress in 2010 From previous page
in the year, I assumed the responsibilities of President & Chief Executive Officer after many years with Mayo Clinic and Sanford Health. It is truly a pleasure for me to work for this fine organization and
to live in this great community. I am committed to building on the good work of our past leaders as we continue to provide high-quality health care to the citizens of our region as an independent, city-owned hospital organization.
Looking ahead to expansion projects Northfield Hospital & Clinics is now considered a regional medical destination. It’s strategic geographic location and its wide range of quality medical services have made it an attractive partner to a number of healthcare organizations. That was underscored last fall when Mayo Clinic chose to locate a new radiation oncology center less than a mile from our hospital. Come July, patients will no longer have to leave town for this important therapy. It will be available right here in Northfield. This development has added momentum to our plans for clinical expansion for Chemotherapy & Infusion Services and Sleep Medicine. Space now used for business functions and medical records will be redesigned to better meet the needs of our chemotherapy and infusion services patients.
It will also allow us to improve the space we dedicate for diagnostic sleep studies, and with that we will pursue important accreditation from American Board of Sleep Medicine. This clinical expansion will require relocation of some nonclinical services. In anticipation of that, we have purchased the former Village School at 1100 Bollenbacher Drive in Northfield. It will be the new home to Patient Financial Services, Health Information Services, Financial Services and General Accounting. However, patients needing access to any of these services should still call or come to the hospital to meet with a representative. With the new configuration in the hospital’s main entry corridor, the Front Desk will be moved closer to the front entrance of the hospital and the Northfield Hos-
The clinical expansion project will be one of our focal points for 2011. pital Auxiliary’s gift shop, Kaleidoscope, will be moved next to the hearth waiting area. The Auxiliary is helping to fund this project with a pledge of $150,000 over the next five years. The clinical expansion project will be one of our focal points for 2011. It will provide an economical way for us to continue to expand our outpatient services, while making greater use of an underutilized building in Northfield. It will create another partnership with the City of Northfield to provide health-related amenities to residents and visitors. And most important, area patients will soon have access to state-of-the-art facilities for both radiation and chemotherapy treatments close to home.
Northfield Hospital & Clinics Patient Trends – 2006-2010 Outpatient Admissions Inpatient Admissions Hospital Long Term Care Center Births Surgeries Laboratory Procedures Medical Imaging Visits Emergency Department Visits Ambulance Transports
2006 30,020
2007 34,466
2008 42,157
2009 45,035
2010 48,942
2,764 44 429 2,149 112,724 23,051 8,896 2,119
2,886 66 441 2,236 130,719 23,695 9,478 2,333
2,943 52 481 2,374 146,454 26,293 9,947 2,591
2,727 58 496 2,446 157,311 28,371 9,733 2,436
2,517 59 485 2,569 176,311 29,903 9,200 2,602
Service Activity in Dollars
Long Term Care Center (2.8%) Clinics (15.4%) Inpatient (27.8%) Outpatient (54.0%)
Northfield Hospital & Clinics Revenues 2010 Total Patient Revenue Deductions from Revenue Net Patient Revenue Other Revenue Total Net Revenue
$131,068,108 $65,730,312 $65,337,796 $1,581,698 $66,919,494
Northfield Hospital & Clinics Expenses 2010
Sources of Gross Revenue
Private Pay (4.4%) Medicare (31.0%) Private Insurance (54.5%) Medicaid (10.1%)
Employees Salaries & Benefits Food, Drugs and Supplies Purchased Services Financing Costs Depreciation, Equipment Other
$33,137,657 $8,292,813 $11,417,814 $1,654,619 $4,079,304 $5,632,500
Total Net Expenses
$64,214,707
Northfield Hospital & Clinics Reinvestment Funds Reinvested in Future Operations and Services
$2,385,114
Northfield Hospital & Clinics Community Benefit Summary Community Benefits Reported in the Minnesota Hospital Association Report: “Minnesota Hospitals: Serving and Strengthening Our Communities”
2008
2009
2010
$258,654 $1,250,024 $1,033,193 $573,755 $863,572 – $292,834 $1,620,596 – – $55,750 – $390,717 $6,339,095 10.64%
$259,884 $1,134,995 $1,178,434 $573,755 $940,944 – $351,350 $2,139,121 – – $68,277 – $213,628 $6,860,388 10.68%
$8,684,318 $2,009,701 $401,989 $17,435,103
$8,321,682 $2,007,050 $288,638 $17,477,758
(As Defined by Catholic Health Association and VHA, Inc., Independent Healthcare Associations)
Charity care...................................................................................$168,972 Discounts offered to uninsured patients........................................ $1,008,991 Costs in excess of Medicaid payments.......................................... $1,412,785 Medicaid surcharge........................................................................$551,474 MinnesotaCare tax........................................................................$812,377 Other costs in excess of public program payments................................– Community services.......................................................................$286,271 Subsidized health services............................................................ $1,791,040 Education and work force development................................................– Research..............................................................................................– Cash and in-kind donations............................................................$58,650 Community building............................................................................– Other community benefit costs.......................................................$421,527 Total cost of community benefits (as defined by CHA/VHA Guidelines)... $6,512,087 Percentage of total operating budget.............................................10.4% Additional considerations identified by the Minnesota Hospital Association Costs in excess of Medicare payments.......................................... $7,088,719 Other care provided without compensation.................................. $2,080,825 Taxes and fees...............................................................................$176,853 Total value of community contributions.......................................$15,858,484
Support for Community Programs Northfield United Way, Northfield Healthy Community Initiative, Youth Programs, Community Action Center, Northfield Food Shelf, Christmas Sharing, Northfield YMCA, HealthFinders, Meals-On-Wheels, Thursday’s Table, Health Scholarships for South Central Technical College
Economic Impact
2008
Wages and Benefits Paid . .......................................................$29.52 million Goods and Services Purchased................................................$22.73 million Number of Employees.................................................................... 592
2009
2010
$30.58 million $23.13 million 593
$33.14 million $25.34 million 600
Essential Services Services that meet emergency needs and/or might not be available if not provided by the hospital
Emergency Department, Ambulance Service, 24-hour access to Diagnostic Imaging and Laboratory Services, Home Care, Hospice.
Our Mission To enhance the quality of human life through the provision of exceptional healthcare services and the promotion of health in the communities we serve. Our Services Northfield Hospital FamilyHealth Medical Clinic – Northfield FamilyHealth Medical Clinic – Lonsdale FamilyHealth Medical Clinic – Farmington FamilyHealth Medical Clinic – Lakeville Women’s Health Center of Northfield Hospital Orthopaedic and Fracture Clinic of Northfield Northfield Eye Physicians & Surgeons Northfield Hospital Long Term Care Center Center for Sports Medicine and Rehabilitation – Northfield and Lakeville Children’s Therapy and Speech Northfield Home Care Northfield Hospice Emergency Medical Services
2000 North Avenue • Northfield, MN 55057