Cape Girardeau's hospitals report they are on solid ground

Despite recent news that hospitals nationwide are experiencing hardship from the recession, leaders at Saint Francis Medical Center and Southeast Missouri Hospital say their organizations are on sound footing.

"Given the economic conditions we see and that are reported in the media throughout the country, we haven't noticed any kind of major effect here in our region," said James Wente, president and chief executive officer of Southeast Missouri Hospital. "I've observed that Cape Girardeau has a diversity in its core economic industries, such as the two hospitals, agriculture, retail and education. So we don't have all our eggs in one basket.

"And because we're strategically located between St. Louis and Memphis, [Tenn.,] we have a good amount of people who come for goods and services at our hospitals," he said. "Every sector is affected differently by economic downturns, and we know that life will go on and then things will turn around."

Wente said the situation is somewhat different in Cape Girardeau than in a recent American Hospital Association survey of 736 hospitals throughout the United States. The study found that many hospitals are beginning to see the effects of the economic downturn, with more than 30 percent of survey respondents reporting a moderate to significant decline in patients seeking elective procedures and nearly 40 percent of respondents reporting a drop in admissions.

The report indicated that financial stress is forcing hospitals to consider or make layoffs, cut administrative costs and reduce services to patients. These factors are leading to a decline in hospitals' financial well-being, which in turn could affect the economy of communities where the hospitals are located, said American Hospital Association president and chief executive officer Rich Umbdenstock.

KIT DOYLE ~ kdoyle@semissourian.comConstruction is anticipated to be completed in 2009 on the expanded Saint Francis Medical Center Emergency Department.

"Hospitals are a critical part of our nation's economy as the second largest private sector source of jobs," Umbdenstock said. "In addition, every dollar spent by a hospital supports more than two dollars of additional business activity in a community.

"But cuts to Medicare and Medicaid may stunt hospitals' ability to help drive economic growth," he said. "The economic crisis is taking its toll on patients, communities and hospitals alike."

Not recession-proof

However, Bruce Domazlicky, a professor of economics at Southeast Missouri State University, wrote in an e-mail that urban hospitals in older parts of a city may be more likely to face problems outlined in the survey.

"I suspect that there has been some decline in elective procedures even in this area, but due to the clientele being served (somewhat higher incomes, good insurance), it probably is not so serious," wrote Domazlicky, who also is director of the Center of Economic and Business Research at Southeast.

KIT DOYLE ~ kdoyle@semissourian.comConstruction is anticipated to be completed in 2009 on the expanded St. Francis Medical Center Emergency Department.

Saint Francis Medical Center president and chief executive officer Steve Bjelich said health care is not recession-proof and is as volatile as any other consumer-driven industry. Bjelich said people are now delaying certain surgeries and other medical care for fear of taking off work or not being able to meet their deductibles.

Dave Dillon, vice president of media relations for the Missouri Hospital Association, thinks hospitals in the state and nation will soon experience difficult financial times.

"We're coming into a time when less people have health insurance but need care," Dillon said. "The dynamics of how people seek health care are changing. People are evaluating what they need in terms holding off certain surgeries. It will be interesting to see over time how people navigate around that problem."

Need for facilities

Despite the gloomy outlook, Bjelich said an increasing number of baby boomers has resulted in the need for a new heart hospital and cancer institute at Saint Francis Medical Center and a cancer center at Southeast Missouri Hospital.

"As baby boomers age, it will create a need like never before," Bjelich said.

That bucks a trend in the study that found many hospitals are reconsidering or postponing investments in facilities or equipment communities rely on for care. Fifty-six percent of respondents are considering or holding off on renovations or plans to increase capacity, 45 percent are delaying purchase of clinical technology or equipment and 39 percent are putting off investments in new information technology.

In the works

Saint Francis Medical Center leaders broke ground on an $84 million Heart Hospital and Cancer Institute in early July. The four-story, 180,000-square-foot facility will provide focused care for heart disease and cancer. Expected to open by fall 2011, the heart hospital will include additional cardiac catheterization labs to provide relief for heart attack victims and more linear accelerators to expand radiation treatments for cancer. Most services now are housed in the existing hospital and off-campus sites such as Doctors Park off South Mount Auburn Road.

Meanwhile, Southeast Missouri Hospital announced in late July its plans to build a $33 million cancer center adjacent to its west campus in Cape Girardeau. The two-level Regional Cancer Center will house a pharmacy, cafe, on-site lab, office space for physicians, resource library, pastoral care office, meeting rooms and educational and counseling services.

Technology will include two linear accelerators for use in treat cancerous tumors, high dose-rate internal radiation therapy that involves placing radioactive sources inside or adjacent to the tumor, MRIs that scan the body and a system for digital imaging.

Construction has begun on the new facility, scheduled for a December 2010 opening.

Continuing growth

In addition to plans to move ahead with construction on the facilities, both hospitals have seen an increase in the number of staff this year compared to 2007. Southeast Missouri Hospital has increased its staff by 6 percent and Saint Francis Medical Center added 4.1 percent.

Both hospitals also have celebrated other expansions and renovations in 2008.

Southeast Missouri Hospital has expanded its emergency services area by 3,000 square feet and renovating another 6,300 square feet. The hospital also opened a modern pediatrics unit and continues expanding its 25-suite obstetrics unit.

Saint Francis Medical Center began an expansion of its emergency center and level three trauma center, nearly tripling the size of the current space and adding 26 new private rooms, three internal waiting rooms and expanded X-ray capabilities. The hospital also opened a Center for Joint Replacement.

As for the future of health care in the region, both leaders think it is bright.

"The economy has its hiccups but we'll recover in a couple of years," Wente said. "We didn't get here overnight and we won't get out of this overnight."

bblackwell@semissourian.com

388-3628

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