The Economics of Healthcare
Did You Know?
DID YOU KNOW?
About 60 million people
— nearly one in five Americans —
live in rural areas and depend on their local hospitals for care.
Last year, 20 of those hospitals closed, making 2020 a record year for rural hospital closures.
Saving Lives
SAVING LIVES - 24/7
We sometimes forget how fortunate we are to have exceptional healthcare - close to home.
When life’s emergencies happen, WhidbeyHealth has been our local safety net for over 50 years.
We Delivered
When COVID-19 hit...
WE WERE READY
- 2 Primary Care Clinics
- Level 3 Trauma Center
- Level 3 Cardiac & Stroke Center
- 24/7 EMS
- 9 Specialty Clinics
- 2 Walk-in Clinics -open every day
- New: Community Pharmacy
WE STEPPED UP
When COVID-19 hit, more than 700 healthcare professionals stepped up and did what was needed to protect us all:
- Added PPE to keep patients and staff safe.
- Created the first drive through testing facility.
- Opened the first public vaccine clinic - 17, 000 shots.
WE DELIVERED
*Calendar year 2020
Accredited
WhidbeyHealth is a
DNV ACCREDITED CRITICAL ACCESS HOSPITAL
WhidbeyHealth provides progressive, patient centric healthcare, a safety net when emergencies happen, and peace of mind knowing our team is standing by 24/7 to respond to your needs.
Our dedicated team of over 700 caring, compassionate and competent healthcare professionals is continually finding new ways to meet the evolving needs of our diverse community.
WHY NOW?
ECONOMIC HISTORY AND HEALTHCARE FINANCES ON WHIDBEY ISLAND
The population of the island has grown. When the hospital opened, Oak Harbor had about 9,100 residents. Today there are more than 24,000 living in our northern-most city alone.
More people need more care than ever, especially primary care services which focus on preventing illness.
Our community is growing older. A disproportionate portion of our population relies on Medicare and other government medical insurance. Unfortunately, government insurances pay far less than commercial insurance. Revenue from commercial insurance companies cannot offset the lower rates from government payers.
As a result, for every $1 billed, insurance pays 44¢.
Even in the best of times, daily operations cost $315,000 with 73% going toward salaries and benefits for providers, clinical and support staff.
Taxpayers contribute less than 5% of the operations budget.
Financial impacts of COVID-19 now exceed more than $18 million in emergency costs and lost revenue. This is a big hit to the $115 million annual operating budget, and the pandemic is far from over.
To be clear: the 2013 bond did not support daily operations. Those funds could only be used for expansion and construction of the new wing of the hospital.
TAX LEVY
WhidbeyHealth is a community-owned health system with a Medical Center and clinics owned by the residents of Whidbey Island.
Healthcare has changed drastically since the hospital doors first opened 51 years ago. Advances in medical care have revolutionized survival from cancer, cardiac disease, stroke, and many other diseases. Clinicians are increasingly specialized, requiring substantial post-graduate training and continuous education.
Healthcare has made a huge impact on our quality of life, and the cost to deliver that quality is very different compared to 1970.
Despite these important and costly advances in medical care, Proposition No.1 on the November 2021 ballot was the first request to increase support for operations in 57 years!
HOW_MUCH_AND_WHERE
PROPOSITION No.1 - Whidbey Island Public Hospital District Levy
Whidbey Island Public Hospital District (WhidbeyHealth) will begin receiving funds from the passed Proposition No.1 from November 2021's ballot late in the second quarter of 2022 - when property taxes are collected. For homeowners of a $400,000 residence, this represents an increase of $3.25 per week; a fraction of library and school taxes.
WHERE WILL THE MONEY GO?
Priorities for the levy revenues will be:
- Retaining existing staff by offering all a living wage especially for support and clerical staff.
- Recruiting additional providers to meet the needs of our growing community.
- Improving long-outdated technology to help providers easily and effectively treat patients.
- Improving communications systems to provide better patient access to their doctors.
COVID Driven Transformation
COVID-DRIVEN TRANSFORMATION
The COVID-19 pandemic accelerated the transformation of infrastructures and the use of technology as healthcare teams responded to the needs of the rapidly changing environment.
They didn't sign up for this....
But they didn’t back down.
Redefined processes and an agile workforce were critical in keeping the community safe. Specialized protective equipment, evolving treatment and cleaning protocol included negative airflow systems and Halo sterilization units to keep patients and staff safe.
INNOVATION
CONTINUOUS INNOVATION
Even while fighting for our lives, WhidbeyHealth teams added services when we needed them:
- Joint replacement for damaged knees and hips
- Telemedicine to improve access to care from home
- Nationally Accredited Cancer Care for patients needing long-term treatment – even if their doctor is on the mainland
- Nuclear Medicine provides highly specialized diagnostic services to identify diseases which cannot be visualized by x-ray or ultrasound scans.
WhidbeyHealth is continuously evolving to meet the needs of our growing and diverse community.