RENO, April 9, 2008 – Today, SEIU Nevada questioned whether Renown Regional Medical Center, as a not-for-profit hospital, was being a good steward of Reno’s healthcare resources. While the hospital claims that “all net income generated by our medical center is invested back in the community,” Renown’s actual spending seems to reflect different priorities.
“As the largest hospital in the region, we believe Renown should stay true to its legacy as a community resource,” said Jane McAlevey, Executive Director of SEIU Nevada. “It is great that Renown is touting their beautiful new hospital, but the luxuries aren’t enough – we need to do more to ensure there are enough nurses to care for the patients in all those new beds.”
Having brought in more than $35 million in net operating revenue over the past year, Renown Health is a highly profitable hospital corporation. This is much like recent trends for not-for-profit hospitals, whose tax breaks helped make 77 percent of them profitable last year. That is compared to just 61 percent of for-profit hospitals that operated in the black last year.
RENOWN KEEPS RAKING IN THE PROFITS BY:
A recent Wall Street Journal article, “Nonprofit Hospitals, Once for the Poor, Strike it Rich,” outlined several ways that not-for-profit hospitals are increasing profits. Renown is using the following to support its recent operating margins – which were up to 9 percent in FY2006 from more than 6 percent in FY2004.
· Hiking up list prices for procedures and services to several times their actual cost: On average, Renown charges patients 216% more for a service than the service cost to provide.
· Demanding upfront payments from patients: Renown’s own website claims that “if you are receiving non-emergency services, you will be asked to pay 50 percent of your bill before the appointment.”
· Selling patients’ debts to collection companies: If you can’t afford to pay the marked-up cost of care at Renown when you arrive, “you will eventually be turned over to a collection agency.” Renown is so serious about collecting payments from patients, they even own their own collection agency, Remittance Assistance Corporation.
RENOWN IS SPENDING THEIR PROFITS ON:
Like many other not-for-profit hospitals flush with cash, Renown is spending their profits on a fancy new hospital tower and executive compensation.
· Rich Executive Pay: While total payroll only increased by 1.5 percent in the hospital, CEO Jim Miller’s total compensation rose by 84.3 percent from 2003 to 2005. In 2005, he received $1,125,502 in salary, benefits and expense accounts.
· Renown’s Luxury Hospital Tower: This $318 million project includes192 new beds in private patient suites on 11 floors – each of which will have 26-inch flat screen TVs and two pieces of the 400 original works of art purchased by the hospital. In addition, Renown is building a 30,000 square foot “healing garden.” All these luxurious things will improve the patient experience – but shouldn’t come at the expense of investments in patient care necessities like nurses, staff and equipment.
Join SEIU Nevada Nurses at their Rally!
WHAT: Rally for Higher Quality Care at Renown!
WHEN: Thursday, April 10 at 1 PM
WHERE: Picket Park, Across from Renown Regional Medical Center
SEIU Nevada nurses are asking Renown – help us spend more time helping patients by fully staffing our hospital!
This is the 9th story in a 10-day countdown to the SEIU nurses at Renown’s rally for patient care on April 10. For more information about SEIU contract negotiations at Renown, to interview a nurse or to talk to an academic expert about why we need enforceable staffing ratios in our hospitals, contact Hilary Haycock at 745-1532 or hhaycock@seiunv.org. Or visit our website at http://www.seiunv.org/healthcare/renonurses/Default.aspx.
STORY #9 – Renown’s Priority:Luxuries and CEO Salaries