Reid’s impact on the communities it serves goes well beyond healthcare
Ask anyone about the value a health system brings to the communities it serves, and the first thing they'll likely mention is patient care. After all, "leading our communities to well-being, one person at a time" is Reid Health's mission.
But the value of a health system like Reid goes well beyond the vital services that take place in exam rooms, surgical suites, and physician offices every day. Its impact can be felt in ways many don't consider when they think about the organization's place in the community, bringing millions of dollars in economic benefit every year.
Reid Health is a not-for-profit health system. It does not have -- nor does it serve the needs of -- shareholders. Instead, Reid is governed by a Community Board of Trustees, local volunteers who give their time in service to Reid and their communities. All the organization's earnings are retained for the future replacement of property, facilities, and equipment.
To give you a better sense of the crucial role Reid plays in East-Central Indiana and West-Central Ohio, let's look at some of the numbers that define the health system and the benefits it brings to the region.
At a glance
Reid by the numbers
Reid Health
consists of:
- 271 beds (231 inpatient and 10 observation at the hospital and 30 residential adolescent at the Reid Health Care Pavilion)
- 4 urgent care facilities
- 26 patient care facilities
- 1 outpatient surgery center
- 1 pharmacy
- 1 retail clinic
- 1 home care service
- 53 physician offices
- 148 physicians and 18 residents
- 127 advance practice providers (APPs), which includes nurse practitioners, physician assistants, audiologists, nurse-midwives, and clinical nurse specialists
- 3,502 employees and 175 volunteers
Reid has facilities
in 10 cities, eight counties, and two states, serving a total regional
population of some 283,453 people.
Economic ripple effects
All those
employees bring economic benefits to the places they work and live.
According to
the Indiana Hospital Association's (IHA) Economic Impact Calculator, Reid's 3,502
employees help create more than 7,500 other jobs throughout the local economy. Reid's
payroll of more than $314 million last year had an impact of more than $665
million in local communities thanks to taxes collected, real estate bought and
owned, items and food purchased from retail stores, going out to eat or for
entertainment, and more.
Add in
non-salary spending along with capital and construction costs in 2022, and
Reid's $704 million in spending led to a nearly $2.2 billion economic benefit
to the region, according to the IHA's calculations.
Financial impact that goes beyond taxes paid
A common
misconception about Reid is that its not-for-profit status means it doesn't pay
property taxes. Actually, Reid paid a total of $2,800,174 in taxes from
2017-2021. Over that same period, the tax exemption value was $97,149,182.
But Reid gives
back to those it serves, partnering with other organizations to work toward
common goals of improving health. Over those same five years, Reid provided
$218,248,591 in Community Benefit through grants, financial assistance for
those who can't afford care on their own, making up the gap between what
Medicare/Medicaid pays for and what care actually costs, and more.
That's $123,899,583
in net value to the communities we serve, an amount far beyond what Reid would
have paid in taxes were it a for-profit organization.
Grants provide direct help to local programs
Community Benefit is the basis of the
tax-exempt status of not-for-profit hospitals. It's defined as programs or
activities that improve access to health services, enhance public health,
advance health knowledge through research and education, and/or relieve the
burden of government to improve health.
In 2010, the Affordable Care Act added
new requirements for tax-exempt hospitals in the areas of Community Health Needs Assessment (CHNA), implementation strategy, billing and collections, and
reporting. In 2014, the IRS issued final rules implementing these requirements.
The goals of those provisions are to ensure tax-exempt hospitals are meeting
the health needs of their communities and to ensure greater transparency and
accountability.
Grants, along with other specific
outreach and requirements to meet Reid Health's not-for-profit status, have put more than $168 million back into the community in the past
five years. A committee of Reid's governing board and community members reviews
grant requests. The grants are awarded as part of the health system's efforts
as a mission-driven, not-for-profit organization.
Cents on the dollar
A large portion of the population in the region relies on Medicare and Medicaid for insurance coverage. Among Reid patients, only 15% use commercial insurance. For many urban health systems that number is consistently about 40%.
Meanwhile, reimbursements from Medicare and Medicaid aren't keeping up with inflation, creating a gap between how much it costs Reid to provide care and how much Reid is being paid by these programs. Because of that ever-widening imbalance, costs are forced to shift to those patients who use commercial insurance.
Add to that the fact that the Medicare population is growing at a fast rate while commercially insured patients are decreasing, and you can see why many hospitals throughout the state are struggling to maintain a balanced budget.
Hospitals are also facing an unprecedented workforce crisis; skyrocketing costs of drugs, labor, and equipment; and lingering supply shortages that strain resources and threaten access to care.
At Reid, costs for critical medical supplies such as syringes, gloves, and other personal protective equipment (PPE) have exceeded inflation. Escalating costs for maintaining property, facilities, and equipment -- due to supply chain limitations, long lead times, construction labor, and building materials -- are depleting key reserves.
While laborcosts continue to rise beyond the 8% inflation rate, commercial insurers raised Reid's rates only 3.9% for 2023, while insurance company profits have been in "record territory" for several consecutive years.
Dedicated to service
Despite these
challenges, Reid Health remains committed to its mission as well as its values
of excellence, empathy, integrity, and accountability. The health system
continues to push forward with new projects and expanded services, including a
$100 million replacement facility coming to Connersville that is hoped will
serve as an economic springboard for the city and Fayette County.
Just the latest
example of how Reid can have a large impact on the communities it serves, one
that goes well beyond the boundaries of healthcare.
How are you feeling?
Behavioral health -- which includes mental health, substance use, and more -- is a key part of your overall well-being.
Brief screenings are the quickest way to determine if you or someone you care about should connect with a behavioral health professional. Think of these as a checkup from your neck up.
This program is completely
anonymous and confidential. Immediately following the brief questionnaire
you'll see your results, recommendations, and key resources.
Reid Community Benefit is working to reduce stigma
Substance Misuse and Mental illness are very present in our service area. In looking to help those who suffer in our communities, one of the largest barriers for those seeking help is stigma. The pressure and shame of stigma can prevent those who need help from seeking it. By reducing stigma we are helping to improve the mental health and well-being of those in our community who suffer from mental illness and substance misuse.
Stigma is when someone, or even you yourself, views a person in a negative way just because they have a mental health condition. Some people describe stigma as a feeling of shame or judgement from someone else. Stigma can even come from an internal place, confusing feeling bad with being bad.
Navigating life with a mental health condition can be tough, and the isolation, blame, and secrecy that is often encouraged by stigma can create huge challenges to reaching out, getting needed support, and living well. Learning how to avoid and address stigma are important for all of us, especially when you realize stigma's effects:
- People experiencing mental health conditions often face rejection, bullying and discrimination. This can make their journey to recovery longer and more difficult.
- Mental health conditions are the leading cause of disability across the United States.
- Even though most people can be successfully treated, less than half of the adults in the U.S. who need services and treatment get the help they need.
- The average delay between the onset of symptoms and intervention is 8-10 years.
- Suicide is the second leading cause of death of youth ages 15-24 and the tenth leading cause of death for all Americans.
