What is Community Engagement?

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.

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.

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.

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.

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.

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.