DANVILLE - Even with the ongoing challenges of a struggling economy, the uncertainty of health reform and reimbursement shortfalls, Geisinger Health System ended fiscal year 2011 (July 1, 2010 through June 30, 2011) in a strong financial position. According to audited financials, Geisinger achieved an operating margin, after interest expense, of $180.9 million, or 6.8 percent of revenue of $2.7 billion. Revenue grew by 13.8 percent over fiscal year 2010, an incredible achievement in the current environment, the company reported in a statement Friday.
"We are able to achieve such positive operational performance because of our talented employees and the numerous innovative programs we have established," said Geisinger President and Chief Executive Officer Glenn Steele, Jr., MD, PhD. "The primary focus is on improving quality while reducing costs and enhancing how we care for patients. Our care model is designed to keep people healthy, reduce unnecessary hospital readmissions, and get patients back home with their families sooner."
"As a not-for-profit organization, we are accountable to the communities we serve, not shareholders. We reinvest every dollar we make into improving healthcare for the people of this region," Geisinger Executive Vice President and Chief Financial Officer Kevin Brennan was quoted in the statement. "Our charitable mission and financial strength enable us to reinvest in our people, programs, facilities and technology, advance research, train medical professionals and serve as the region's driver of economic growth."
Geisinger has reinvested more than $1 billion in capital improvements since 2002, and expects to spend an additional $250 million in capital this fiscal year. The health system also spends $1.1 billion annually in salary, benefits, education and training, the company reported.
"A strong Geisinger is excellent news and an asset not only for our employees, patients and health plan members, but also for all the residents of central and northeast Pennsylvania," said Brennan.
Highlights of Geisinger's important investment in the community include:
- Geisinger ended FY 2011 with 14,407 employees, continuing a job growth trend contrary to the experience at most healthcare organizations across the country. Geisinger has added 6,000 jobs since 2001, a 72 percent increase in its workforce.
- The health system invested more than $265 million last year in community support which includes: Over $173 million to provide care for the elderly and poor not covered by Medicare and Medicaid; more than $40 million to provide allied health, residency and fellowship education programs; nearly $25 million in free, uncompensated care for patients who could not afford to pay; $12.5 million in healthcare research; and nearly $11 million in community health, education and outreach programs.
- A recent report by The Hospital and Health System Association of Pennsylvania (HAP) quantifies Geisinger's positive annual impact on the state's economy at $5.5 billion. Through direct employment, spending and the ripple effect of Geisinger's utilization of local, regional and state vendors, the health system provided nearly 26,000 jobs to the Commonwealth's workforce in 2010.
