..TEN EVENING TIMES, CUMBERLAND, MU:, WEDNESDAY, OCTOBER 26, 1955 Dial PA-2-1600 for a WANT AD Tak«j ADVERTISEMENT ADVEHTISEMENT ADVERTISEMENT Annual Report of the Memorial Hospital An open report to the People of Cumberland and Allegany County October 13, 1955 Board of Governors, Memorial Hospital, Cumberland, Maryland. Attention: WILLIAM A. GUNTER, President CHARLES A. PIPER, Treasurer JAMES L. WEBER, Secretary . R FINLEY THOMPSON STUART ROSENBAUM MAYOR ROY EVES WILLIAM H. LEMMERT Gentlemen: This page contains a summary of the work done by the hospital during the fiscal year, July 1, 1954 to June 30, 1955. Our hospital, designed to serve the public, is dependent on the good will of the Community. It is my hope that by publishing this report, a better understanding by the Community can be grasped relative to the problems of the hospital. Regardless of economic conditions, the health needs of the Community must be fulfilled if we are to carry out the purpose for which our _ hospital was dedicated. This, I feel, has been done. It is- extremely difficult to show the life and death functions of a hospital in statistics. To •attempt to show in cold print the thousands of lives that are saved- each year by the facilities of the hospital is' impossible. The hospital, after all, is a human creation and is operated solely for the betterment of the Community. It is not operated to make a profit on the miseries of its people, nor is it operated for the betterment of any one segment of the citizens of the Community. The hospital is operated to cars for the medical needs of all the people regardless of their race, creed or color and regardless of their financial station in life. The statement of income, incorporated in this report will show that the hospital had an excess of income amounting to approximately $25,000. While this is a sizable figure, it represents only 2% of our budget. The hospital, being a non-profit corporation, does not niake a profit. Any excess of income is used solely for the improvement of hospital facilities enabling us to render better, safer patient care to those we are called upon to treat. I am very happy to advise you that our cost per patient day is considerably below the national average for hospitals our size, and that our charges to patients are very much below those charged by hospitals in other localities. Despite the fact that our costs and charges are well below the average of other hospitals, it is often exceedingly difficult to properly explain this to our patients, who, at times, feel that they are being over-charged. In order to illustrate this problem and our attempt to explain our costs and charges, the following narrative could well take place. . Our Cashier was having a bad time with a husband of an out-going patient. The man's wife had been brought into the hospital for an emergency appendectomy three days before. Our bill, broken down, covered $30 for a Semi-private room for three days, $20 for the Operating room, $20 for the Anesthesia, $10 for the Laboratory work and ?5 for drugs. "This bill is terrible, I am not going to pay it," said the man at the window. "How can you expect a working man like me to pay $85 for three days of care? What we need is hospitals that are run by the Government." This man happened to be a skilled tradesman. He was asked first if the service his wife had received had been satisfactory. "Yes" he replied, "everything as far as her service was fine and I have no complaints." "What would it cost the hospital" he was asked, "if you were to provide it with service.over a continuous three day period?" "Our rates are $22.80 for an eight hour day," he replied. "What about the night rales? 1 ' he was asked. "That would be double time, $45.40." "So the cost for one day of constant attendance by one tradesman would be $113.60." "That is right" agreed the husband, "and for three days it would be $340.80. "And that is for wages alone" the cashier continued, "it doesn't include material." "It takes more than 400 employees to run our hospital, two employees per patient around the clock to care for your wife. The hospital supplied food, linen, medications, surgical equipment, laboratory services, dressings and techniques-and skills. This hospital had the responsibility for the safety of your wife, too." There was a pause—"Do you still think your bill is too high?" "For the first time" said the tradesman, "somebody' has taken the time to explain to me in language I can understand, the charges in a hospital." One more bit of analysis. All hospital services last year averaged a cost oj less than 70c an hour which can hardly be compared with the average pay of a wage earner in this area. Problems are always with us, and new challenges are ever over the horizon, but I feel sure that with the continued cooperation and understanding of the Board of Governors, that these problems, as have problems in the past been resolved to create a better Memorial Hospital for the people of Cumberland and Allegany County. To make this report more easily understood, I have endeavored to show in the form of charts, how and where the hospital gets it's money and how and where it is spent. The balance of the report follows: ACCOMPLISHMENTS DURING THE YEAR Probably the most important event during the past year, was the completion of the 4th west wing to the hospital. This was named in honor of Mr. Ferman G. Pugh, a benefactor of this hospital, and this addition is now known as the "Ferman G. Pugh Hall." This added 23 vitally needed beds to our-facilities and will enable us to admit approximately an additional 1,000 patients per year. This project cost approximately $77,000 and was completed at no cost to the taxpayers of the City of Cumberland or Allegany County. Physically, the hospital is in better shape than at any time since I have had the opportunity of being your Superintendent. A program of painting and repair is constantly going on. During the past year, new equipment was added to our facilities as follows: four new Oxj'gcn Tents were purchased; a new Coffee Urn was added .to the kitchen facilities; in the Physio Therapy Department, a- Whirlpool Bath and Medcolator were added; a new Hydraxtor, costing $6500 was added to the laundry facilities; a new Dishwasher, costing approximately. $8,000 was added to the Dietary facilities, plus innumerable small items that were replaced where necessary. In addition, as of the dale of the printing of this report, but not "within (he figures of our fiscal year, the hospital completed the installalion of a new emergency lighting system capable of furnishing the entire electrical requirements of the hospital during a power failure. This installation is one 'Of the best that can he found in hospitals anywhere, and assures our patients of additional safety when the public ulility faita This installation, the cosl of which was met by the hospital, exceeded $20,000. Also recently opened, was the new parking lol with a capacily of approximately 80 aulomobiles. This should solve the acule parking problem at the hospital. STATISTICS . ! Patients admitted during year ; 9973 Patient days of service rendered 72459 Number of babies born • 1260 Average number of patients in hospital per day 208 Average slay per patient In days 7.3 THEHOSPITALDOLLA R—W H E H E IT C A M E T R 0 M The chart in graphic form above vividly portrays the necessity of the collections of patient's accounts by the hospital, inasmuch as 89% of the hospital's .income must come from the patients the hospital serves. It can' be seen that while the State appropriation is of inestimable importance to the hospital's'finances,-only 9% of the hospital's income is derived from this.source.. OUT PATIENT SERVICE CARWOtpG '.AMESTHESiA M" ,. > ' " X-RAV PHYSIO - 1 THE HOSPITAL DOLLAR—HOW IT IS SPENT The cost of hospital care cannot be compared to any other type of expense. As shown in graphic form above, 78% of the hospital dollar is spent for strictly hospital functions such as nursing care, special services and dietary services. Only 22% of the hospital expense can be compared to the expense incurred in operating any ordinary hotel.. SURGICAL oOM t«Wl ANESTHESIA SALARIES WAGES THEHOSPITALDOLLA R — WHERE IT GOES Few people realize thaMhe hospital is one of the area's larger employers and offers perhaps. the' greatest degree of employment stability. Lasl year the hospital paid almost $700,000 in salaries to its employees.' This represents approximately 60% of the hospital expense. •'•>.' • * . BALANCE SHEET June 30, 1955 THE HOSPITAL OWNS: Maintenance Fund • Cash for operating expenses $ 158,010.46 ; Due us from Patients . lt)7,l 85.40 Value of Supplies in our Storerooms 66,443.21 .Prepaid Insurance 4,756.03 336,395.10 Endowment Fund • ' Harriet Rice Legacy Fund $ 1,712.96 H. f. Robinson Memorial Fund 570.25 Memorial Hospital Radium Fund 2,077.42 •'.-'• Ferman G. Pugh Fund 124,977.54 Investment Fund—U.S. Government Bonds Contingency Fund Plant Fund Cash in the Bank ? 3,162:45 • Hospital Site, Approaches, Parking Lot 47,948.88 Bldgs. & Equipment (Net Book Value) 973,116.28 $ 129,338.17 $ 90,038.88 $ 10,786.79 Total . THE HOSPITAL OWES: Accounts payable, all current $ 83,277.78 The difference between what we OWE $1,024,227.61 $1,590,786.55 and what we OWN is: $1,507,508.77 $1,590,786.58 STATEMENT OF INCOME FOR YEAR ENDING JUNE 30, 1955 Net Income from Patients $1,221,497.69 Other Income 11,826.18 Total Income Operating Expense Salaries paid Employees $ 692,654.14 Other operating expense 481,969.47 Depreciation of Building & Equipment 33,627.58 $1,233,323.87 100% Excess of Income'for year $1,208,251.19 $ 25,072.68 ACKNOWLEDGEMENTS: At the time of the Fourth Floor Expansion, Mrs. Edna I. Hetzel, Mrs. Anna Lee Wilkinson, Mrs. Elizabeth Grade Wilson, Dr. William A. Grade, Jr., Mr. Milton Beneman, Mr. Harry Beneman, Dr. and Mrs. Wylie Faw, Miss Elizabeth Lowndes, and the Ferman G. Pugh Estate contributed generously to the furnishing of wards and rooms in memory of: CARL C. HETZEL DR. WILLIAM A. GRACIE BARNET BENEMAN JAMES LEE FAW TASKER G. LOWNDES ', FERMAN G. PUGH I acknowledge with deepest grafitude. the generosity of these thoughtful citizens. The creation of these living Memorials materially benefits everyone having occasion to use the facilities of the Memorial Hospital. The Memorial Hospital and the Social Service Agencies of Cumberland are fortunate in having in their midst, instruments of public support such as The Cumberland News, The Cumberland Times, The Sunday Times, The Allegany Citizen. Radio Stations—WDYK, WCUM and WTBO. All of these agencies of public service generously give their resources of time and talent in furthering the public's inlerest and education relative to the work of the hospital and other agencies. Their assistance, cooperation, understanding and support is an item that cannot be evaluated in a balance sheet. Hence, to these services, a debt of gratitude is recorded and a sincere acknowledgment of appreciation is hereby accorded. The members o[ the Memorial Hospital Sewing Club have come to the hospital almost each week since 1932. Their voluntary efforts have contributed much to the welfare of our patients and words seem insufficient to properly express our sincere gratitude. I also appreciate the many generosities shown the hospital by the Woman's Auxiliary and the Nurse's Alumnae Association. These fine organizations have always worked hard in furthering the best interests of the hospital. . I acknowledge the generosity of the Cumberland Clergy for attending the Spiritual needs of our patients. Too much^cannot be said for the very valued assistance of the Red Cross in providing the Red Cross Blood Program. The hospital also' acknowledges the generous donations of blood to the Red Cross Bloodmobile by our citizens and accord a debt of gratitude for their very unselfish generosity. The Junior Chamber of Commerce donated a "Rockette" to the . hospital for use in the Maternity. This equipment has already saved the lives of several new born babies. Their thoughtfulness and generosity to our patients is gratefully appreciated. The Newcomer's Club replaced high chairs for the Children's Ward of the hospital. Their thoughtfulness and generosity is hereby acknowledged. It is a pleasure to also acknowledge the efforts of various Civic -organizations, Sunday School classes, High School students, Girl Scouts, who, from time to time, give of themselves to brighten the lives of our patients, particularly during the holiday season. To the Medical Staff for their cooperation and cordial relations, may v I express my sincere gratitude for their understanding and sympathy of management problems which arose during the year. All of the members of the hospital Medical Staff give freely of their time and professional efforts on behalf of the indigent of our Community, and receive nothing in return. I cannot say loo much for the very valued efforts of the hospital employees towards rendering a superior hospital service to the people of Cumberland and Allegany County. They are a dedicated, loyal and devoted group of people who are sincerely interested in the betterment of their fellow citizens and strive day by day to ease the pain and suffering-of these individuals. . For the splendid'cooperation and understanding of hospital problems by the -Mayor and City Council of the City of Cumberland and the Board of Allegany County Commissioners, the hospital is deeply grateful. The enlightened understanding and cooperation of these men is of inestimable importance ( to all the people our hospital is called upon to serve. ' Finally, 'as Superintendent, may I accord my sincere appreciation to the Board of Governors for their cooperation, wisdom and diligence in furthering^the complex wo.rk of the hospital. Every member of the Board of Governors always gives freely of his time and knowledge upon request. Each member's very valued suggestions and guidance have been indispensable in fulfilling the objectives towards which we constantly aim—namely: "Better Patient Care" and "A Good Hospital in a Good Town." THE HOSPITAL IS APPROVED BY The Joint Commission on Accreditation of Hospitals. Maryland State Board of Examiners for Nurses. A'ND IT IS A MEMBER OF . ' American Hospital Association. Maryland — Delaware — District of Columbia Hospital Association Maryland Hospital Service, Inc. Respectfully submitted •JOHN A. MOBERLY , . Superintendent.
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