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Why is the Madison Hospital so important to Huntsville Hospital and to our community?

David Spillers You have probably read or heard about the administrative law judge’s recent recommendation favoring Crestwood/Community Health System (CHS) to build the hospital in Madison. The judge’s recommendation is not binding. It is the first step in a two-part process.

In the second step, the State Certificate of Need & Review Board (CON) in Montgomery will make the final decision on the Madison hospital. Huntsville Hospital will present a strong case there on March 19 as we continue to seek approval to build the hospital.

Why are we so determined? When you consider the facts, we believe that you will conclude, as we have, that lessening our efforts to build the hospital in Madison would be irresponsible.

  • Over the past decade Huntsville Hospital has facilitated the investment of nearly $20 million in our Madison Medical Park. A variety of healthcare services are offered there (physician offices, Imaging, Urgent Care and Wellness) and are used by nearly 5,000 citizens each month from the City of Madison and western Madison County.
  • The vast majority of the residents of the Madison area already choose Huntsville Hospital for their healthcare. In addition, many of the residents in the area are fortunate enough to carry healthcare insurance. To remove a large number of the insured patients from those we treat would inhibit Huntsville Hospital’s ability to pay for services we provide to those in the community who are less fortunate.
  • Madison’s leaders are on record supporting Crestwood/CHS. It is evident that the promise of taxes weighs heavily in that support. Crestwood/CHS has estimated that it would pay approximately $250,000 annually to the city. Huntsville Hospital does not pay taxes, but the actual cost of free healthcare services provided by Huntsville Hospital to the citizens of the City of Madison who were unable to pay exceeded $2.5 million in the past year alone.
  • Political support does not mean community support. Three separate surveys (two commissioned by Huntsville Hospital and one by Crestwood) in the City of Madison and western Madison County produced similar results when residents were asked, “Which hospital do you prefer to build the hospital in Madison?”

    June 2006, Public Opinion Strategies
    Huntsville Hospital 40%
    Crestwood 31%

    December 2006, Data Management & Research, Inc.
    Huntsville Hospital 49%
    Crestwood 31%

    June 2007, HealthStream Research
    Huntsville Hospital 51%
    Crestwood 33%

  • Crestwood changed ownership for the fifth time last year. Just recently, its new owner, Community Health System, sold four of its hospitals in our region, including hospitals in Decatur, Hartselle, Cullman and Jacksonville. Certainly, stability of ownership is a factor that should be considered. Huntsville Hospital has been community owned and operated since 1895…and Huntsville Hospital will still be your hospital in another century.
  • Some people say that increased competition decreases healthcare costs, but this has not proven to be true nationally or locally. On the contrary, increased competition has increased the utilization of healthcare services which must be paid by payers.

There is something even more significant that must be considered in this matter—the future. A quick reflection on the recent past helps provide a measure of the possible future impact of the Madison hospital decision. Since 2000, Huntsville Hospital—

  • established a dedicated Women & Children’s Hospital;
  • developed a comprehensive trauma program for the region;
  • built a new and expanded Neonatal Intensive Care Unit;
  • brought pediatric surgery to our region;
  • introduced robotic surgery to the community;
  • recruited physicians that were needed in our community;
  • established one of only five clinics affiliated with St. Jude Children’s Research Hospital;
  • and will soon complete the largest trauma/emergency department in Alabama.

These new services, along with new equipment purchases since 2000, represent a $250 million investment in our larger community. Huntsville Hospital accomplished this by reinvesting its “profits” into improving care and services for you and your family. Our community and our region are the beneficiaries of this investment, rather than stockholders. That’s what successful not-for-profit hospitals do. They continue to raise the level of care for all of us.

By every estimation the funds Huntsville Hospital generates will drop by $10 million per year if another entity builds the hospital in Madison. Over the next 10 years that amounts to $100 million that cannot be invested in new programs and technologies that our community will need.

At the same time, the amount of care that we must provide to patients who are uninsured continues to rise. This is a national crisis that affects our community as well. More than 30 percent of the patients who come to our Emergency Department do not have health insurance. Whether for an emergency patient or a hospitalized patient, Huntsville Hospital provides the vast majority of care for the uninsured and indigent patients in our community.

Actual cost of care provided by Huntsville Hospital at no cost to the recipients was more than $49.8 million in the past fiscal year—and without tax support from any governmental entity. By contrast many other hospitals in Alabama receive a subsidy for such care. Example: the Jefferson County Commission (Birmingham) allocates $45 million annually to Cooper Green Hospital for indigent care.

Of course, Huntsville Hospital will not close its doors if Crestwood/CHS builds the Madison hospital. We will continue to provide you quality healthcare. It is not a matter of whether services would be cut, but what new services or expanded services would not be feasible. If we cannot make that investment, who will? I ask you to consider the future. What do you want healthcare to look like? What services will you expect in your community?

Some healthcare decisions are bigger than others. These decisions can have impact far into the future. The Madison hospital is one of those decisions. It’s about our community and our region. It is about the future. For these reasons, Huntsville Hospital will continue to seek approval to build the Madison hospital.



David Spillers,
Chief Executive Officer