MIKE'S MESSAGE

February 2009

Health Care in Uncertain Economic Times

For more than fifty- (50) years, the Pender Community Hospital District has provided a continuum of exceptional healthcare services in a healing environment for everyone.

One of our primary goals is to provide strong leadership in rural healthcare that is proactive, visionary, and financially responsible.

Today, everywhere we turn, we're reminded of our national-and even global-economic plight. The recent mortgage bailout, the high cost of fuel, and talk of the worst economic recession in decades.

In recent years, the healthcare industry has been considered by many to be "recession proof," given the nation's aging population and the reality that getting sick is inevitable. But new evidence shows that even that belief may no longer hold water.

There is no question that the financial crisis has slowed growth in the healthcare industry. In fact, when the economy is soft, employers reduce insurance coverage and increase co-pays, and people whose jobs get cut lose their insurance altogether. The Government continues to tighten reimbursement, and patients avoid primary, preventive, and elective care. These trends significantly impact the revenue of health care providers.

Our emphasis will always remain on working to assess, anticipate and respond to the needs of our patients but, as we continue to expand our services and strive to sustain the future of our organization, we will undoubtedly have to take a serious look at our financial payment structures.

In doing that, what you can be assured of is that we will serve the emergency healthcare needs of everyone seeking treatment, regardless of ability to pay. Our billing practices will be fair, equitable and will treat all patients with dignity, respect and compassion. Furthermore, we will take affirmative efforts to help patients apply for public and private programs for which they may qualify and that may assist them in obtaining and paying for healthcare services. We will also extend to patients a no-interest, short-term patient payment plan.

The Pender Community Hospital District continues to be an effective Rural Health System. We have been blessed throughout the years with the dedication of the medical staff, Board of Directors, and hospital staff. What has separated us from the unsuccessful is the very thing that always seems to make a difference regardless of the circumstances - continuing to put out a quality product, and being relentless and fearless in pursuit of making it better each year. And of course, none of this would be possible without the loyalty and generous support of everyone making up our hospital district.

Sincerely,

Michael Hansen, FACHE
Chief Executive Officer