The latest financial report from the Pennsylvania Health Care Cost Containment Council shows Tyrone still showing a loss in the “total margin” category in fiscal 2005, but improving from the previous year.
“Total margin” is a percentage figure used by the Cost Containment Council and relates to operating and nonoperating revenue after expenses.
In 2005, Tyrone’s total margin was minus 8.66 percent. The figure was minus 9.51 percent in fiscal 2004. The minus 9.51 percent figure was a substantial improvement from fiscal 2003 when Tyrone showed a minus 25 percent in “total margin.” Tyrone showed a minus 13.75 percent average for the three-year period from 2003 to 2005.
George Berger, Chief Financial Officer at Tyrone Hospital said the hospital’s conversion to “critical access” helped to nudge the hospital in a positive financial direction. Berger said good cost containment on the part of the hospital also contributed. Tyrone Hospital’s costs compare favorably to other critical access hospitals in Pennsylvania. In addition, recent growth of the Keystone Headache and Pain Management Center at Tyrone Hospital also contributed.
Hospital spokesperson Theresa Yanchetz said the hospital converted to critical access status a couple of years ago. She said critical access is a special government program designed to help small hospitals. She said with critical access status the hospital may typically have more Medicare patients, which allows for more favorable Medicare reimbursements.
Yanchetz said certain requirements have to be met in order to qualify for the program. She noted there are a number of communities surrounding the northern Blair County that are federally designated as being in a health care provider shortage area.
“It is the federal government’s way of trying to keep local health care,” said Yanchetz. She said the hospital sees patients from communities such as Houtzdale, Brisbin and Coalport in Centre County.
She said patients in communities such as the one mentioned seek treatment in Tyrone and other surrounding hospitals in Clearfield and State College. The Philipsburg Hospital closed last month after filing for bankruptcy earlier this year.
Tyrone Hospital has been facing additional financial pressures this year after a monetary judgment against it and a doctor stemmed from a lawsuit involving a child’s birth at the hospital in 1995.
The hospital has contended it may have to file for Chapter 11 bankruptcy if it is forced to pay more than what it is covered for under the insurance policy.
