Jennie Stuart Health is a nonprofit, acute care hospital in Hopkinsville, KY licensed for 194 beds. In 2016, Jennie Stuart had revenues of $128,084,367 and expenses of $131,295,498, a loss of more than $2 million. In December 2016, Fitch Ratings maintained a Negative Rating Outlook due to “Jennie Stuart Medical Center’s three years of negative operating performance.”
QHR Health Solutions
To identify opportunities to improve revenue and reduce expenses, Jennie Stuart leveraged QHR Health’s Finance Excellerator™ financial services and its cadre of hospital veterans who bring a 40-year track record of successfully serving independent community hospitals and health systems. QHR’s Healthcare Finance and Reimbursement team recommended Jennie Stuart:
- Pursue designation as a rural hospital with Centers for Medicare and Medicaid Services (CMS).
- After securing rural hospital designation from CMS, obtain Medicare Sole Community Hospital Designation.
- Subsequently apply for a Medicare Geographic Reclassification to align Medicare reimbursements with the Nashville, TN market.
QHR Health partnered with Jennie Stuart to implement the Medicare reimbursement recommendations, and together, the partnership delivered a total of $4.4 million in additional revenue:
- $800,000 per year for three years due to a 7.1 percent increase in Jennie Stuart’s outpatient Medicare reimbursement rate, and
- Approximately a $2,000,000 increase in inpatient Medicare reimbursement rate for inpatient services.
By 2019, Jennie Stuart’s revenues had increased to $146,137,923, and net income was $10,549,705.
“QHR’s Finance Excellerator™ services were critical to the turnaround of Jennie Stuart’s finances. In three years, we went from a net loss of more than $2 million to a net income of nearly $10.6 million.”
Greg Moore Chief Financial Officer and Vice President Jennie Stuart Health
For more information about Finance Excellerator™, visit: https://qhr.com/solutions/financial-management/