September 16, 2011
CONTACT: Marcy Marshall (Danville Area) 570-271-6435
Dave Jolley (Wilkes-Barre Area) 570-808-3248
Kim Aboud (State College Area) 814-949-0512
FOR IMMEDIATE RELEASE
Geisinger Health System continues trend of strong performance, job growth and community benefit
Danville, PA — Even with the ongoing challenges of a struggling economy, the uncertainty of health reform and reimbursement shortfalls, Geisinger Health System ended fiscal year (FY) 2011 (July 1, 2010 through June 30, 2011) in a strong financial position. According to audited financials, Geisinger achieved an operating margin, after interest expense, of $180.9 million, or 6.8% of revenue of $2.7 billion. Revenue grew by 13.8% over FY 2010, an incredible achievement in the current environment.
“We are able to achieve such positive operational performance because of our talented employees and the numerous innovative programs we have established,” said Geisinger President and Chief Executive Officer Glenn Steele, Jr., MD, PhD. “The primary focus is on improving quality while reducing costs and enhancing how we care for patients. Our care model is designed to keep people healthy, reduce unnecessary hospital readmissions, and get patients back home with their families sooner.”
“As a not-for-profit organization, we are accountable to the communities we serve, not shareholders. We reinvest every dollar we make into improving healthcare for the people of this region,” said Geisinger Executive Vice President and Chief Financial Officer Kevin Brennan. “Our charitable mission and financial strength enable us to reinvest in our people, programs, facilities and technology, advance research, train medical professionals and serve as the region’s driver of economic growth.”
Geisinger has reinvested more than $1 billion in capital improvements since 2002, and expects to spend an additional $250 million in capital this fiscal year. The health system also spends $1.1 billion annually in salary, benefits, education and training.
“A strong Geisinger is excellent news and an asset not only for our employees, patients and health plan members, but also for all the residents of central and northeast Pennsylvania,” said Brennan.
Highlights of Geisinger’s important investment in the community include:
- Geisinger ended FY 2011 with 14,407 employees, continuing a job growth trend contrary to the experience at most healthcare organizations across the country. Geisinger has added 6,000 jobs since 2001, a 72% increase in its workforce.
- The health system invested more than $265 million last year in community support which includes: Over $173 million to provide care for the elderly and poor not covered by Medicare and Medicaid; more than $40 million to provide allied health, residency and fellowship education programs; nearly $25 million in free, uncompensated care for patients who could not afford to pay; $12.5 million in healthcare research; and nearly $11 million in community health, education and outreach programs.
- A recent report by The Hospital and Health System Association of Pennsylvania (HAP) quantifies Geisinger’s positive annual impact on the state’s economy at $5.5 billion. Through direct employment, spending and the ripple effect of Geisinger’s utilization of local, regional and state vendors, the health system provided nearly 26,000 jobs to the Commonwealth’s workforce in 2010.
- Geisinger continues to achieve national prominence for innovative programs and services. For example, Geisinger Health System was named to the country’s “100 Most Wired Hospitals and Health Systems” for the ninth time by Hospitals & Health Networks Magazine. Geisinger Medical Center was named to the 2010 Thomson Reuters 100 Top Hospitals®: National Benchmarks Award for overall organizational performance. The Richard and Marion Pearsall Heart Hospital at Geisinger Wyoming Valley was named to a national Top 50 in Heart Surgery list. And Geisinger Health Plan was ranked the top private health plan in Pennsylvania and fifth in the nation according to the National Committee for Quality Assurance’s Health Insurance Plan Rankings 2010-2011.
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 northeast Pennsylvania. For more information, visit www.geisinger.org. Follow the latest Geisinger news and more at www.twitter.com/geisingerhealth and www.facebook.com/geisingerhealth.
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