WENTE SAYS SOUTHEAST FACES CHALLENGES

Southeast Missouri Hospital is maintaining financial stability, but like hospitals nationwide it must deal with the fiscal challenges resulting from continued reduction in Medicaid and Medicare reimbursements, says the hospital's administrator.

Southeast Administrator James W. Wente outlined those challenges and the hospital's accomplishments during the past year at the Southeast Missouri Hospital Association's annual meeting Thursday night

Dr. Melvin A. Kasten and his wife, state Rep. Mary C. Kasten, were presented the Outstanding Service Award., and the late Dr. Jesse R. Ramsey was honored posthumously with the Special Service Award.

Speaking to more than 700 association members and guests at the Show Me Center, Wente pointed out that in Southeast's 2000 revenue budget of $170.6 million, $66.2 million or 40 percent will be written off to Medicare and Medicaid losses, charity care, bad debt and commercial contracted care.

"People ask why hospital costs have gone up so much," Wente said. "Well, how many businesses do you know that can write off 40 percent of revenue and stay in business? And if they do stay in business, think what their price structure would be like?"

Wente reported that financially Southeast maintains its stability. Total assets have increased to more than $125 million while its long-term debt has been reduced to 23 percent of total assets.

But he said that each year increases in assets are less due in large part to contractual allowances with insurance companies and the Balanced Budget Act of 1997, which is responsible for the largest cut in Medicare reimbursements to providers in U.S. history.

Wente advocated reforming Medicare and Medicaid.

"The cost of entitlement programs needs to be carefully computed so the financing mechanism better matches the cost of care," he said.

Service to Southeast Missouri Hospital, to the community and to the state was recognized with the presentation of the Outstanding Service Award to the Kastens. They were honored for their individual and combined records of civic service and their commitment to advances in health-care services for the region, said Jerry R. Zimmer, Southeast hospital's board of trustees president.

In private, surgical practice and on the medical staff of both Cape Girardeau hospitals since 1955, Kasten has earned state and national recognition, including terms as president of the Missouri State Medical Association and chairman of the Missouri delegation to the American Medical Association.

Kasten has been president of the medical staff and chief of surgery of both hospitals and was president of the Cape County Medical Society and the Doctors' Park board. He also has been a member of Southeast's Board of Trustees since 1979, serving as president from 1995 to 1997. Kasten has devoted time to community betterment as a two-term member of the Cape Girardeau City Council.

Mary Kasten, in both her civic and government roles, has long been interested in protecting and promoting what is good for children, Zimmer said. She served on the Cape Girardeau school board for 20 years, executive committee of the Missouri School Board Association for nine years and on the Southeast Missouri State University Board of Regents. First elected to the Missouri House of Representatives in 1982, Kasten has had two major commitments: to promote legislation impacting and protecting children and efforts for reform in the state's educational system.

Mary Kasten's concern for health care and the health-care needs of her district led to her role in founding the Community Caring Council to encourage social-service agencies and other local entities to work better together to serve children and families. Cape Girardeau's Community Caring Council has become a model for the development of similar community coalitions in Missouri.

Accepting the Special Service Award to Ramsey was his wife, Kim. The award recognizes those who strive to advance the quality of health services for the community.

For more than 20 years Ramsey, who died Feb. 23, exemplified excellence and dedication in the practice of medicine and his tireless efforts to improve both at the local and state level, the health care of Missouri's children, Zimmer said.

As both a private and hospital-based physician in Cape Girardeau, Ramsey made contributions to the development of newborn and pediatric services at Southeast; the establishment of clinics in the region for the benefit of children with chronic medical conditions; the practice of emergency medicine at Southeast; and the evolution of the hospitalist program, a collaborative effort by Southeast and St. Francis Medical Center to better manage the care of hospitalized children and adults who have no local physician.

Also at the meeting Wente went over the hospital's accomplishments during the past year. He said Southeast invested more than $4 million in equipment and programs, including expansion and upgrading of the hospital's third cardiac cath lab; the addition of a sleep lab; the addition of bone density testing; and the introduction of new procedures and installation of new equipment in the areas of urology, ENT surgery, intensive care and radiation therapy.

Wente outlined Southeast's plan to modernize its obstetrics service by converting the Dennis B. Elrod OB/GYN Center into a labor, delivery, recovery, postpartum center with private rooms and updating its nursery, neonatal intensive care unit and operating suites. An analysis of the hospital's certificate-of-need application is tentatively scheduled to be heard by the Missouri Health Facilities Review Committee on June 5. Wente said he hopes construction will begin in early fall.

Wente said the addition of a surgical technology program to the hospital's College of Nursing and Health Sciences, announced earlier this year, will help address shortages of trained technologists in this field. The addition of the new program will bring with it a 1,400-square-foot addition to the college.

John Thompson, president of the Southeast Missouri Hospital Foundation board of directors, said the foundation has raised more than $7 million since being established in 1977.

"Many of the services we have added were provided through the generosity of the members of the community we serve," he said. "Community health care comes from a community that cares and gives."

Zimmer announced 40 new members have affiliated with the Southeast Missouri Hospital Association during the past year, bringing the total membership to 835. Officers for the coming year are Zimmer, president; David Hahs, first vice president; Narvol Randol Jr., second vice president; and Mike Kohfield, secretary-treasurer.

Re-elected to the hospital's board of trustees were Paul Bray, Rob Erlbacher, Milton George, Jane Grimm, Ron Hahs, Charles Hutson, Ed Kiefner, Weldon Macke and Zimmer. Newly elected to the board is Mike Price. Longtime trustee Leta Bahn, on the active board since 1983, has now attained honorary trustee status.