Hospital J

History of Hospital J

Hospital J is a for-profit, mid-size institution (50-200 beds) providing acute care, general services in the Pacific Northwest region. This community hospital has been meeting its community’s health care needs since it was founded in the early 1900s.

Ownership of the hospital passed from nonprofit to a for-profit and nonprofit collaboration in the latter 2000s when a for-profit health care system acquired majority ownership. Stipulations in the sale required governance of the hospital be under a 50-50 “block-voting” basis between the for-profit majority and nonprofit minority owner.

Hospital J is located in a middle-class, majority white community with less than 60,000 residents. The community is less racially diverse than the US population, with approximately 83% of residents identifying as White non-Hispanic, 9% as Hispanic or Latino, less than 1% as Black, 2.5% as Asian, 3.5% as more than one race, and the remainder a combination of additional races and ethnicities. Educational attainment is slightly higher than the average US population with approximately 92% of residents completing high school, but slightly lower for obtaining a bachelor’s degree or higher at 30%. The most common employment for the city by industry is education, manufacturing, mining, transportation, agriculture, health services, and tourism. The average age of residents is 32, the average income is $40,000 to $50,000, and the median property value is between $125,000 and $150,000. The community has a relatively high poverty rate of between 18% and 20%, when compared to the US average of 11.4%.

The state where Hospital J is located does not currently have a CON law program and was one of many states to repeal their CON programs after the federal government removed the CON mandate in the late 1980s. Today, only 35 states and DC have regulation via CON laws.

Hospital J as an Anchor Institution

Hospital J has been recognized among some of the nation’s leading hospitals with a five-star rating from the Centers for Medicare and Medical Services (CMS), putting the hospital in the top 10% in the country. Hospital J prides itself on being a community partner that is dedicated to charity care, educational seminars, outreach and engagement efforts that address health disparities in the community, and being a primary employer and tax payer that greatly contributes to the health of the local economy. Hospital J also endeavors to be environmentally sustainable and verifies energy savings, water efficiency, reduced emissions, and recycling measures for the community. Hospital J supports local and state food banks, youth sports programs, and financially supports a free clinic and other local charities.

Staff cite motivations for carrying out anchoring efforts as deeply rooted in the hospital mission as a community hospital that exists to improve local health outcomes. Hospital J actively strives to deepen its relationship with the surrounding community and be viewed as a true community partner. An employee further explained that by engaging in anchoring efforts the hospital is better able to address health disparities.

Challenges staff face during anchoring efforts are unique to for-profit versus nonprofit hospitals. As a for-profit institution, the hospital encounters regulatory restrictions on who they may partner with and sponsor. Staff explained as a mid-sized community hospital, they have a limited budget for partnering and sponsorships and so a primary challenge is making difficult decisions about who they are able to partner with and sponsor.

Anchor Activities

Funding

Provide financial support for:

• Chamber of Commerce
• Safety-Net Community Clinic
• Local Food Banks
• Public education
• Youth sports programs
• Local charitable foundations

Community Stability

• Local hiring, purchasing, and contracting.
• Works closely with and partners with Chamber of Commerce, law enforcement, and fire and rescue.

Health Promotion

• Community education seminars and initiatives.
• Charity medical care for underserved communities.
• Outreach and engagement efforts that focus on community health disparities.

Community Building

• Investments in community development.
• Partners with law enforcement and fire and rescue to increase health and safety of community.