Skip to main content
Sister Publication Links
  • ESG: THE NEW IMPERATIVE
Subscribe
  • My Account
  • Login
  • Subscribe
  • News
    • Current News
    • COVID-19
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Digital Health
  • Insights
    • ACA 10 Years After
    • Best Practices
    • Special Reports
    • Innovations
  • Data/Lists
    • Rankings/Lists
    • Interactive Databases
    • Data Points
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Custom Media Event: ESG Summit
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Transformation Summit
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Supply Chain Revenue Cycle
    • - Hospital at Home
    • - Workplace of the Future
    • - Virtual Health
    • - Future of Healthcare Staffing
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • MORE +
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. News
April 05, 1999 01:00 AM

HMO HITS W.VA. HOSPITAL'S BOTTOM LINE

Barbara Kircheimer
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    West Virginia's largest hospital, Charleston Area Medical Center, will seek state approval this month for a 2% rate increase to pump $3.5 million into its current budget, which is being dragged down by a money-losing HMO.

    The amount seems a mere drop in the bucket when compared with the deficit the hospital reported last year, the cumulative losses incurred by its 5-year-old HMO and $40 million in penalties and unpaid amounts the state's healthcare authority claims the hospital needs to address.

    "Obviously, all parts of this system need to move toward a self-sustaining financial position, and that's what our goal is," said Phil Goodwin, president and chief executive officer of Camcare, CAMC's parent company.

    West Virginia requires state approval of hospital price increases; the last increase granted to CAMC was in 1993.

    Since then, a dispute over CAMC's rate calculations has postponed the application and review of other annual increases. About $40 million that the state claims CAMC owes is under appeal.

    The 818-bed medical center is made up of three facilities -- General Division, which specializes in neurology, orthopedics, trauma and kidney transplantation; Memorial Division, which specializes in heart and cancer treatments; and Women and Children's Hospital. CAMC's not-for-profit parent, Camcare, also owns 30-bed Braxton County Memorial Hospital in Gassaway, W.Va., and 79-bed Plateau Medical Center, in Oak Hill, W.Va.

    Camcare also owns Carelink, a 63,000-enrollee HMO that has lost a total of $35.3 million since it was created in 1994, according to records from the West Virginia Insurance Commission. In the last two years alone, Carelink has lost nearly $18 million, state figures showed.

    Goodwin said Carelink continues to struggle, like many HMOs, because of rising costs and flat premium revenues. It has hired outside consultants to look at the HMO's operations, and it raised premiums by 15% this year.

    Only about 11% of West Virginians are enrolled in managed-care plans, said Steven Summer, president of the West Virginia Hospital Association. "Every HMO in our state has essentially been losing money since it started," he said.

    But Carelink is the only one in the state owned by a hospital company.

    Goodwin said the hospital's rate increase is not tied to Carelink's losses. "If we were trying to finance Carelink through that rate increase, we'd be asking for a lot more money," he said.

    Charleston Area Medical Center lost $13 million in 1998 on revenues of about $600 million, said Goodwin. The previous year, the hospital reported a $17 million profit on about the same amount of revenues.

    The sharp drop in profitability resulted from unfavorable changes in federal reimbursements and an over-aggressive redesign program, Goodwin said.

    CAMC is ranked second only to 331-bed West Virginia University Hospitals in Morgantown when its rates are compared with all other West Virginia hospitals. CAMC's average rate per discharge was $10,168, compared with $14,767 for West Virginia University, according to data from the West Virginia Health Care Authority. The median is $5,005.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story?Ā Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    News App | Modern Healthcare
    News App | Modern Healthcare
    Mobile Apps | Modern Healthcare
    Mobile Apps | Modern Healthcare
    Sponsored Content
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright Ā© 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • COVID-19
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Digital Health
    • Insights
      • ACA 10 Years After
      • Best Practices
      • Special Reports
      • Innovations
    • Data/Lists
      • Rankings/Lists
      • Interactive Databases
      • Data Points
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Transformation Summit
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Supply Chain Revenue Cycle
        • - Hospital at Home
        • - Workplace of the Future
        • - Virtual Health
        • - Future of Healthcare Staffing
      • Custom Media Event: ESG Summit
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • MORE +
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing