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Hospitals Prioritize Community Needs Over Finances Amidst Economic headwinds
Facing financial strain across the United States, some hospital and healthcare system CEOs are dedicated to preserving specific services, even when financial considerations might suggest otherwise.
For instance, Perry County Memorial Hospital in tell City, Ind., made what might seem like an unconventional investment for a critical access hospital by launching its own police force.According to CEO Jared Stimpson, this decision was driven by the need for a heightened security presence for both staff and patients.
“The return on investment is not a financial one by any means, rather it is an investment in the safety of our staff and patients,” he said. “As a rural hospital, the financial commitment for a 24/7 police force is great, and much more arduous for us to bear than the larger hospitals, but nonetheless, it is just as necessary given the hazardous climate we are in today.”
Mr. Stimpson also noted that the hospital maintains several service lines that aren’t necessarily profitable but are kept in place due to community needs. He cited a women’s healthcare clinic as an example, noting that although the hospital closed its obstetrics department in December 2023, the clinic is scheduled to open in the first week of November.
At Stoughton (Wis.) Health,protecting its geriatric psychiatric inpatient program is a key priority. The health system operates Stoughton Hospital, a medical group, rehabilitation and sports medicine clinics and urgent care locations.
“Despite financial pressures, this investment remains essential given the shortage of inpatient behavioral health beds,” President and CEO Chris brabant told Becker’s. “Maintaining this service ensures vulnerable older adults receive the specialized care they need, while strengthening our commitment to the community.”
Other leaders are committing to investments that are considered lossleading services, such as labor and delivery care, to support community needs.
“We’ve even invested in labor and delivery services, which many hospitals are divesting from, because our community needed it,” Austin Jones, senior vice president and CFO of North Kansas City, Mo.-based NKC Health, told Becker’s in August. “It’s typically a loss leader, but we are community-focused – from the board of trustees to the front line – and we heard the need. That investment is paying dividends.”
Hospital Investments Driven by Community Needs
“the return on investment is not a financial one by any means, rather it is an investment in the safety of our staff and patients.”
