CONTACT: Amanda O’Rourke (Danville Area) 570-271-6435
Dave Jolley (Wilkes-Barre Area) 570-808-3248
Kim Aboud (State College Area) 814-949-0512
Sept. 21, 2012
FOR IMMEDIATE RELEASE
Trend of strong performance, job growth, community benefit and economic impact continues at Geisinger Health System
Danville, PA — Continuing a positive operational performance trend, Geisinger Health System ended fiscal year (FY) 2012 (July 1, 2011 through June 30, 2012) in a strong financial position. According to audited financials, Geisinger achieved an operating margin, after interest expense, of $154.3 million, or 5.3% on revenue of $2.9 billion. Revenue grew by 11.7% over FY 2011, a considerable achievement given ongoing economic challenges, health reform and reimbursement shortfalls.
“We are fortunate at Geisinger to be performing well and increasing employment during a time when that is not the norm for many health care organizations across the country,” said Geisinger President and Chief Executive Officer Glenn Steele, Jr., M.D. PhD. “Our success is in large part due to the hard work of our employees and Geisinger’s commitment to innovative programs designed to increase quality and value for the people we serve.”
“As a not-for-profit organization, we reinvest every dollar we make into enhancing health care for the people of central and northeastern Pennsylvania,” said Kevin Brennan, Geisinger Executive Vice President and Chief Financial Officer. “Our charitable mission, combined with our financial strength, makes it possible for us to reinvest in our people, programs, facilities and technology, further our research efforts, train medical professionals and serve as a major driver of the regional and state economy.”
Geisinger has reinvested more than $1.0 billion in capital improvements over the past decade, and spends more than $1.2 billion annually in salary, benefits, education and training.
Highlights of FY 2012 include:
• Geisinger ended FY 2012 with 17,530 employees, an increase of 3,123 over FY 2011. Geisinger has added 9,000 jobs since 2001.
• The health system invested more than $277.5 million last year in community support, which includes: over $181 million to provide care for the elderly and poor for costs not covered by Medicare and Medicaid; more than $43 million to provide allied health, residency and fellowship education programs; $26 million in free, uncompensated care for patients who could not afford to pay for care; $11 million in health care research; and $13 million in community health, education and outreach programs.
• The most recent report by The Hospital and Health System Association of Pennsylvania (HAP) indicates that Geisinger has a $5.5 billion annual positive impact on the state’s economy. Through direct employment, spending and the ripple effect of Geisinger’s utilization of local, regional and state vendors, the health system provided approximately 26,000 jobs to the Pennsylvania workforce in 2011.
• Geisinger continues to achieve national prominence for innovative programs and services. For example, Geisinger was recognized with a number two national ranking on the IMS 2012 Top 100 Integrated Health Systems list as well as inclusion in the Top 15 Health Systems in the country by Thomson Reuters; Geisinger Health Plan (GHP) and Geisinger Gold were named for the fourth year in a row the top ranked private and Medicare health plans in Pennsylvania; GHP’s HMO is ranked eighth and Geisinger Gold’s HMO is ranked ninth for quality and service by the National Committee for Quality Assurance (NCQA); Geisinger Health System received the 2011 American Medical Group Association Acclaim Award for Transforming Care Delivery: Patient-Centric, Value-Driven Innovation; the health system was included for the ninth time on the country’s 100 Most Wired Hospitals and Health Systems list compiled by Hospitals & Health Networks Magazine; Becker’s Hospital Review named Geisinger to the 100 Best Places to Work in Healthcare list; and Geisinger was ranked tenth on the Gartner’s annual Healthcare Supply Chain Top 25.
Geisinger Health System increased in size during FY 2012 with the addition of Geisinger-Shamokin Area Community Hospital and Geisinger-Community Medical Center. Geisinger-Bloomsburg Hospital became part of the health system at the beginning of the new fiscal year in July.
“Our history of strong operational performance has also made it possible for us to partner with select hospitals and health systems that share our commitment to quality and value,” said Brennan. “As a result, we are helping to not only keep care in local communities throughout the region, but to grow services.”
About Geisinger Health System
Geisinger is an integrated health services organization widely recognized for its innovative use of the electronic health record, and the development and implementation of innovative care models including ProvenHealth Navigator, an advanced medical home model, and ProvenCare program. The system serves more than 2.6 million residents throughout 44 counties in central and northeastern Pennsylvania. For more information, visit Geisinger. Follow the latest Geisinger news and more at Twitter and Facebook.
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