Background on Kosair Children's Hospital - Assignment Example

? Kosair Children's Hospital Table of Contents I. Introduction 3 II. Background on Kosair Children's Hospital 3 III. Impact of the World and NationalEconomy on Kosair Children's Hospital 4 IV. Sustainability of the Care Model 6 V. Regulations 7 VI. Health Care Reform 7 References 8 I. Introduction This paper provides an analysis of the outside and economic influences to Kosair Children's Hospital, with emphasis on the world economy and national economy impacts; how sustainable the care model of the organization is; regulations; and health care reform. II. Background on Kosair Children's Hospital The hospital touts itself as a specialist focused solely on the care of children (Kosair Children's Hospital, 2012): For more than a century, Kosair Children's Hospital and its predecessor hospitals have cared for the children of Kentucky and Southern Indiana without regard to their families' ability to pay. Kosair Children's Hospital is Kentucky's only full-service, free-standing pediatric care facility dedicated exclusively to caring for children and is an advocate for the health and well-being of all children. The 263-bed hospital, supported by the Children's Hospital Foundation, serves as the primary pediatric teaching facility for the University of Louisville School of Medicine (Kosair Children's Hospital, 2012). The hospital has received numerous awards and commendations in recent years. In 2007, for instance, the hospital garnered the Magnet distinction, which is a designation given to hospitals and organizations that have achieved excellence in nursing. This award is given by the American Nurses Credentialing Center. In the area of pulmonary care, the hospital has also received recognition for excellence, as noted by the US News & World Report in its annual assessments of hospitals (Kosair Children's Hospital, 2012). In 2012-2013, the hospital ranked 4th in pulmonology among all children's hospitals in the country, and has ranked in the national level in seven categories of health care in all (US News and World Report, 2012). It is noteworthy that Kosair Children's Hospital as an organization is both an independent entity operationally, but also a part of the larger organization known as Norton Healthcare (US News & World Report, 2012b): Norton Healthcare is a general medical and surgical hospital in Louisville, KY. It performed nearly at the level of nationally ranked U.S. News Best Hospitals in 11 adult specialties, as shown below. Norton Healthcare has 349 beds. The hospital had 17,530 admissions in the latest year for which data are available. It performed 6,902 annual inpatient and 7,959 outpatient surgeries. Its emergency room had 29,357 visits. (US News & World Report, 2012b) III. Impact of the World and National Economy on Kosair Children's Hospital It is to be noted that during the worst of the US and global financial crisis the hospital did well. Its recent numerous awards and commendations, received during the years considered as being the immediate time vicinity of the crisis, showed that the hospital remained in excellent form during and immediately after the financial crisis. It is noteworthy that its excellence is achieved in the context of the Norton Healthcare system, the umbrella organization of which Kosair is the arm devoted to the care of children, is a non-profit organization (Norton Healthcare, 2012): The "profits" of a nonprofit health care system, such as Norton Healthcare, are used to reinvest in its community assets. This contrasts with for-profit health care providers, which use part of their profits to pay stockholder dividends. Norton uses its profits to improve facilities, technology, information systems, services and other areas; and to provide direct benefits to the community through the "Community Dividend," (Norton Healthcare, 2012). At the height of the financial crisis, the hospital system did well, with Kosair represented as being part of the total financials of the Norton Healthcare system (Norton Healthcare, 2007): Norton Healthcare's $22.5 million patient service margin - from patient services provided in 2007 - represents the fourth consecutive year that the organization has recorded a positive margin, with highlights including: Posted a $79.6 million bottom line (operating income). This represents the fifth consecutive year that Norton Healthcare has posted positive operating income; Contributed a record $70.8 million community dividend, a 5.3 percent increase from 200; Recorded $3.4 billion in gross revenues and ended 2007 with $1.6 billion in total assets. Improved net revenues to $1.18 billion, a $30 million improvement (3 percent) from 2006. Since 1998, Norton Healthcare's net revenues have grown from $417.9 million to $1.18 billion, an increase of 182 percent (Norton Healthcare, 2007) Meanwhile, looking at the financial statements for 2010 and 2011, we see that not only has Kosair survived the worst of the global and national economic crises, but it has further thrived in fact, with net assets improving year on year, and making a substantial jump from 2010, even as community benefits, the measure of its “profits” being a non-profit organization, likewise showing steady growth from the previous years. The hospital also maintained a positive cash flow for 2011, while being an improvement on the cash flows achieved from the previous year (Norton Healthcare, 2011). IV. Sustainability of the Care Model The care model is different from other children's hospitals in that it is rooted in the parent organization's non-profit care model. The financial arrangement, of the hospital existing not for profit but for service, has profound implications for the quality of care and for the sustainability of this care model. First going by the evidence of the numerous quality awards that the hospital has received over the years and the solid financials of the parent organization, it is clear that non-profits are sustainable if done right. The success and the quality of care at Kosair Children's Hospital demonstrates that this care model built on a financial model geared towards service rather than profits works. The mandate is for quality care and not for profits. The way the hospital measures its own performance and the performance of its care practitioners is also based on quality of care metrics rather than on profits. The result has been that on those important metrics of quality of care, the hospital has excelled. This has been achieved on the back of a financial picture that has maintained its viability even during the worst of the financial crisis. There is a case therefore to be made for the sustainability of this care and business model. The care model is summarized by Norton Healthcare, managing Kosair, in the following terms (Norton Healthcare, 2012b): We have a wonderful story to tell. From our modest faith-based beginnings, Norton Healthcare has grown to be the area's leading health care provider with some of the most advanced technologies and well-trained physicians, nurses and staff. Norton Healthcare includes 5 large hospitals, 12 Norton Immediate Care Centers and more than 90 physicians practice locations. Norton is committed to caring for our patients and our community. As a not-for-profit organization, our greatest reward is your health. We are proud of the people at Norton, our innovations and our progressive role in health care. (Norton Healthcare, 2012b). V. Regulations Kosair has active programs designed to monitor and ensure its compliance with regulations and laws in the geography were it operates. Being a non-profit, and given that it has thrived through the years on the back of such a policy of strict compliance with regulations, one can say that the general impact of regulations on Kosair Children's Hospital has been one of spurring the hospital to further improve its operations and to further feed on the regulations to improve quality of care. Among other things, the care with which it screens volunteers for compliance with the regulations, from the HIPAA to corporation guidelines and regulations, to the code of conduct of Norton Healthcare, all show that Kosair Children's Hospital adheres to regulations and has thrived in the midst of the current regulatory environment (Kosair Children's Hospital, 2012b). VI. Health Care Reform Kosair has a comprehensive understanding of the impact of health care reform on the children's hospital. It recognizes that the health care reform means expanded coverage for more children who at present do not have health insurance. From its stance it is clear that the hospital welcomes the reforms, and understands the impact of reforms on the system Being a non-profit, it is in a better position to thrive in the new environment in comparison to for profit hospitals, which will have to view the profit impacts of the health care reform (Kosair Children's Hospital, 2012c). References Kosair Children's Hospital (2012). About Us. Kosair Children's Hospital Website. Retrieved 9 December 2012 from http://www.kosairchildrens.com/AboutUs Kosair Children's Hospital (2012b). Volunteer. Kosair Children's Hospital Website. Retrieved 9 December 2012 from http://www.kosairchildrens.com/volunteer Kosair Children's Hospital (2012c). Understanding Health Care Reform. Kosair Children's Hospital Website. Retrieved 9 December 2012 from http://69.8.250.109/landing.cfm?id=545&action=detail&ref=80989 Norton Healthcare (2012). Financial Reports. Norton Healthcare. Retrieved 9 December 2012 from http://www.nortonhealthcare.com/financial Norton Healthcare (2012b). The Norton Story. Norton Healthcare. Retrieved 9 December 2012 from http://www.nortonhealthcare.com/TheNortonStory Norton Healthcare (2007). Financial Report 2007. Norton Healthcare. Retrieved 9 December 2012 from http://www.nortonhealthcare.com/FinancialReportGlossary Norton Healthcare (2011). Combined Financial Results 2011. Norton Healthcare. Retrieved 9 December 2012 from http://www.nortonhealthcare.com/FinancialReportGlossary US News and World Report (2012). Kosair Children's Hospital Rankings. Kosair Children's Hospital Website. Retrieved 9 December 2012 from http://www.kosairchildrens.com/AboutUs US News & World Report (2012b). Norton Healthcare. US News & World Report Health Hospitals. Retrieved 9 December 2012 from http://health.usnews.com/best-hospitals/area/ky/norton-healthcare-6510488 Read More