Hospital executives foresee growth despite layoff concerns

Despite concerns about the recession, hospital executives expressed optimism about the continued growth of the local health care industry during a forum on the economy sponsored by the Columbia Chamber of Commerce.

Boone Hospital Center had two rounds of layoffs in 2008, due in part to a small decrease in patient admissions, but the hospital also embarked on major construction projects.

“It’s been a challenging year for Boone,” President Dan Rothery said during the forum at Premier Bank. But he added, “We’re optimistic…that Boone has a bright shining future.”

Rothery’s sentiments were echoed by University Healthcare CEO Jim Ross, who pointed to increased demand for healthcare services over the last four years as indicator of persistent and growing long-term demand for healthcare services in Columbia.

While some consumers are putting off elective surgeries during the recession, demand for core services seems to be strong. From 2004 through 2008, MU Healthcare had a 24 percent jump in patient admissions, a 22 percent increase in emergency room visits and a 29 percent increase in surgeries.

MU Healthcare estimated net revenue at $32 million in 2008, compared with $33 million in 2007 and $40 million in 2006.

Ross noted the continuing strength in faculty recruitment and placement numbers at MU Healthcare, with a net gain of 108 physicians since 2005. Dr. Robert Churchill, dean of the School of Medicine, said there was a 58 percent increase in faculty during 2004-2008. There have been consistent improvements at the MU School of Medicine as the results of years of investment in faculty, educational innovations, and a $100 million renovation of laboratory space, he said.

Other investments in technology and patient care are also critical to helping local hospitals maintain a competitive edge in a recession. Use of electronic medical records is up 477 percent since 2004 at MU Healthcare as the industry looks to technology to increase the efficiency of medical communication and cut administrative overhead. Rothery said there has been a $15 million annual investment in technology at Boone Hospital Center, including the purchase of a Da Vinci robotic surgical system.

During 2009, the local healthcare industry looks toward completion of facilities at MU’s Discovery Ridge research park, the MU Life Sciences Business Incubator and Landmark Hospital, where patients will be able to receive long term acute care. During the next decade, job creation at Discovery Ridge is projected at 1,500 jobs, and Landmark Hospital expects to create 120 full-time jobs and 30 part-time jobs with a $7.2 million annual payroll.

William Kapp, president of Landmark Holdings LLC, said the $9 million, 42-bed Landmark Hospital on Old Highway 63 will open in August and provide care to seriously ill patients who normally are juggled around in hospital or nursing home systems that aren’t designed to meet their needs.