Hospital With Heart Turns Financial Corner

Maricopa Medical Center defies odds with financial performance - September 19, 2005

It's a story like Rudy's. The short kid with nothing but heart made the football team and lived to fight another day. Like Rudy, Maricopa Medical Center, formerly known as County Hospital, was doomed to be in debt, to falter and fade into the sunset. But that's not what happened.

As Maricopa County residents see the Special Health Care District line item on their tax bill for the first time, they can rest assured their tax dollars are being used to solve systemic problems within the Valley, such as the doctor shortage. The district is the taxing authority for Maricopa Integrated Health System, which includes the largest teaching hospital in the Valley, 11 family health centers, including one devoted to HIV-AIDs patients, and two in-patient psychiatric hospitals. The hospital is well known for its Level 1 trauma and the Arizona Burn Center.

On January first, we knew we were the ones accountable to our patients, our people and the citizens of this county, said CEO James Kennedy. So, we called a Code Red red ink, that is. In SWAT team style, we devised a survival plan so that we could continue our mission until the tax revenue started coming in.

Predictions were made of debt growing to $17 million by summer. What actually happened would turn most any head on Wall Street.

People began taking days off without pay. Overtime was cut in non-clinical areas. Contracts were renegotiated. Consulting firms were phased out and permanent staff was hiredmostly from the private sector. Staffing practices were revamped. Billing and collections were strengthened. Software programs replaced manual processes. A $15 million line of credit, along with other financial assistance, was negotiated with Maricopa County. And the chaplains prayed.

Today, as the tax money begins to trickle in, employees still diligently watch their spending. They know their efforts avoided a layoff, or worse. They know the healthcare system is not only going to make it, but there are plans for growth, and they're involved in those plans. The balance sheet shows black inkfrom five days of cash to over 20still lower than required, but a huge accomplishment in just a few months. There's no debt on the county line of credit as the new fiscal year begins. The mission of teaching and providing the best in patient care is intact. Just how Rudy would have wanted it.

The special health care district was formed in November, 2003, when voters passed Proposition 414. The district formally took over the health care system from Maricopa County in January, 2005. Transitioning the health plan back to the health care system has been a major accomplishment of the new board of directors.

About Maricopa Integrated Health System

Maricopa Integrated Health System is headquartered in Phoenix, Arizona. The cornerstone of the system is Maricopa Medical Center (MMC), a major teaching hospital with a history dating back more than 100 years. Best known for its critical care services, the hospital offers Level 1 trauma and intensive care for adults, babies and children. Two in-patient psychiatric care centers with nearly 200 beds provide services in behavioral medicine. The nation's second largest burn treatment facility, the Arizona Burn Center, located at the main hospital campus, treats more than 800 patients per year. Eleven family health care centers are located throughout the Valley, providing primary and specialty care ranging from well baby to HIV-AIDS patient services.

For more information, please visit www.mihs.org .

Last updated on October 7, 2008