Gundersen raises rates

0 Comments | La Crosse Tribune, Nov 30, 2002 | by Rindfleisch, Terry

Gundersen Lutheran Medical Center is raising hospital rates by an average of 8.5 percent and its clinic charges by an average of 5 percent effective Jan. 1.

The average combined rate for the hospital and clinic will be about 6.6 percent, the lowest since 1998, said Jeff Treasure, Gundersen Lutheran's vice president of finance.

Last year, Gundersen Lutheran had a combined increase of 9 percent, with a hospital rate increase of 11.5 percent, the third straight year of double-digit hospital rate hikes.

Most hospital room rates for 2003 will increase by 9.5 percent. A general room will cost $256.40 a day, up from $234.20 in 2002. A general intensivie care room will cost $472.50 a day next year, a $41 increase from 2002. The rate for a birthing room will decrease by $12.10 a day to $658.90 a day.

Earlier, Franciscan Skemp Medical Center announced rate increases effective in October - an average combined rate of 7.35 percent, including an average hospital rate of 9.9 percent and an average clinic rate of 5 percent.

Treasure said Gundersen Lutheran was able to keep the rate increase lower for 2003 because medical center officials have worked hard to operate more efficiently and reduce costs.

He said low state and federal government reimbursement for Medicare and Medicaid continues to drive up costs. Treasure said 40 percent of Gundersen Lutheran patients are Medicare patients and 9 percent are Medicaid patients.

"I don't see anything in the near future to solve this problem," he said.

Treasure said Medicare payments for physician services also will be reduced significantly in 2003.

He said the second biggest factor contributing to rate increases is the need to pay higher salaries and benefits to certain types of employees such as nurses and medical technicians to recruit and retain high-quality people in worker shortage areas. Also, the cost of medical supplies is three times the Consumer Price Index, he added.

Even with the rate hike, Gundersen Lutheran has one of the lowest average inpatient bill ($12,204) for comparable hospitals in Wisconsin, Treasure said.

The inpatient bill is 25 percent below the state average, he said, while last year the bill was 20 percent below the state average.

"We compare more favorably than we have in a long time," Treasure said.

Treasure said Gundersen Lutheran building projects should have minimal financial impact on patients.

The East Side building project in La Crosse is less than 1 percent of operating costs for 2003, with private donations helping to fund the cancer care center. he said.

As for the multimillion dollar developing project on the Onalaska Clinic campus, Treasure said "we believe it will pay for itself." Gundersen Lutheran is selling land for a hotel, convention center, office building and assisted living facility.

Treasure said Gundersen Lutheran officials will continue to review programs and services that won't impact quality of health care.

"We'll continue to help control costs of health care and work hard at being more efficient," he said.

For example, next year medical center officials will look at redesigning the supply system so employees use supplies more efficiently and reduce waste, Treasure said.