February 15, 2012 -
Olympic Medical Center’s board of commissioners approved a Financial Stability Plan on Wednesday night at its regularly scheduled meeting. The plan, presented by Chief Executive Officer Eric Lewis, outlines seven major strategies to decrease and control costs, while also increasing revenue.
“OMC faces significant and unprecedented financial challenges in 2012 and beyond, including reduced reimbursement from government payers, increased uncompensated care costs and higher cost of operations,” says Lewis. “The Financial Stability Plan is necessary to keep OMC financially stable and position our organization to survive in the current health care environment.”
The most significant strategy named in the plan is postponing the emergency department expansion by one year, which reduces the 2012 capital budget by $4.5 million.
Although the plan includes other cost-cutting measures such as decreasing capital spending, and adjusting employee medical and retirement benefits to at-market levels offered by most hospitals, it does not include labor-related reductions such as layoffs or outsourcing. The plan focuses on improving efficiencies in patient care and other processes, expanding local services, as well as continuing legislative advocacy efforts.
An executive summary of the Financial Stability Plan is available here.
Olympic Medical Center (Clallam County Public Hospital District No. 2) is a comprehensive, award-winning health care provider for more than 70,000 residents of Clallam County. It has served the community since its establishment on Nov. 1, 1951, and is governed by a seven-member, publicly elected board. Olympic Medical is a sole community hospital and rural referral center, and a charter member of both the Seattle Cancer Care Alliance (2003) and the Swedish Health Network (2011). Olympic Medical provides inpatient services at its 80-bed acute-care facility in Port Angeles, including a level-three trauma designated emergency department, surgical services, and labor and delivery. OMC’s outpatient services include cardiac, imaging, physical therapy and rehabilitation, laboratory, surgical services, home health, physician clinics and comprehensive regional cancer care at locations in Port Angeles and Sequim.