Lehigh Valley Health Network Community Benefit Tops $100 Million for the First Time in 2006

Strong financial performance will help the organization continue to meet the growing demand for patient care

Lehigh Valley, Pa. (Oct. 10, 2006) – Lehigh Valley Health Network (LVHN) today announced a record community benefit of $101.6 million in the fiscal year that ended June 30, 2006, an increase of $17.5 million, or 20 percent compared to 2005.

The community benefit includes:

• a record $72.4 million in direct patient care, which includes free care for those who are unable to pay, the largest portion of LVHN’s community benefit
• $23 million in professional and patient education
• $3.1 million for community partnerships and support for schools and community organizations
• $3.1 million for community education and prevention.

The total represents the community benefit of Lehigh Valley Hospital (LVH), Lehigh Valley Hospital – Muhlenberg (LVH – Muhlenberg), the Lehigh Valley Physician Group (LVPG) and Lehigh Valley Health Services. In addition, LVHN donates building space, equipment and the time and expertise of physicians and staff.

LVHN also announced total revenues for fiscal year 2006 of $1.01 billion and patient services expenses of $936.4 million, for a patient services net margin of $74.6 million, or 6.9 percent of total revenue. LVHN’s margin for fiscal year 2005 (July 1, 2004 through June 30, 2005) was $75.9 million, or 8.4 percent of total revenues. Over the past ten years LVHN has averaged about a 3 percent patient services net margin.

“I believe the record high community benefit is evidence that there are many needs in the community,” said Elliot J. Sussman, M.D., LVHN’s president and CEO. “These needs range from the importance of promoting good health and disease prevention—like administering free flu shots—to forming and nurturing critical community health programs and partnerships, to determining how to help more of the uninsured and underinsured receive quality health care.”

Dr. Sussman said hospitals in a position of strength like LVHN are trying to do more to meet those needs by continuing to re-invest in facilities, technology, services and programs to care for the increasing number of patients who are choosing to go where they can receive the highest quality of care. He said in fiscal year 2006, LVHN cared for 10,000 more patients admitted to the hospital and 190,000 more patients seeking emergency care and other outpatient services than it did six years ago (see chart).

Dr. Sussman said the increase in patients coming to LVHN for care also is responsible for the patient services net margin, which is reinvested in the community. Specifically, the margin pays for things like:

• Construction projects like the one currently underway at LVH—Cedar Crest to meet patient demand.
• Expanding specialty services like the Pediatric Specialty Center at LVH—Muhlenberg.
• A digital radiographic system at LVH-Cedar Crest, used in the ED to expedite procedures for critically ill patients.
• 500 new infusion pumps at LVH-Cedar Crest and LVH-Muhlenberg that include a critical patient safety feature that protects against overdoses.
• PYXIS machines at LVH-Cedar Crest to better protect patients by preventing potential medication errors
• New beds with features that assist with routine activities like weighing patients daily and also a pressure relief mattress that helps to prevent skin breakdowns.
• New maternal-fetal ultrasound machines.
• Renovations that include electrical risers; walls, floors and ceilings; and windows at LVH—17th & Chew, as well as paving, sidewalks and striping at both LVH—17th and LVH—Cedar Crest.
• New MRI equipment at LVH-Muhlenberg that will provide faster images, but also will be shorter in duration and more conducive to those patients who cannot tolerate a scan due to claustrophobia.

“Fiscal strength is what allows us to make these kinds of investments toward a healthier community,” Dr. Sussman said.

Click here to download 2006 Financial Information fpor Lehigh Valley Health Network and Component Entities

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