Economic Impacts of Helen Keller Hospital
Letter from the CEO
We wish to thank everyone who chose our facility for their healthcare needs. Our mission is to provide compassionate, quality, cost-effective health services to the citizens of Northwest Alabama.
We want to be the premier healthcare organization in Northwest Alabama - the hospital that individuals choose for care, where physicians choose to practice, and where healthcare workers choose to be employed.
Paul Story, President/CEO
History of Helen Keller Hospital
Helen Keller Hospital began in 1921 when the city of Sheffield and the Colbert County government pooled their resources to purchase the New Belmont Hospital, a two-story structure located at 300 E. 4th Street, Sheffield. The name was changed to "Colbert County Hospital" and had a bed capacity of about 25.
The overwhelming demand for services at the new hospital prompted local politicians and physicians to consider expansion and relocation. The new hospital opened at its present location on September 17, 1927. The hospital featured three levels, 60 patient beds, a maternity room with sun porch, two operating rooms, an X-ray room, a lab, and doctors' and nurses' rooms. A nurses' home, a tradition in the early 1900's, was built in 1927 and was located next to the hospital. It housed 17 nurses.
Several renovations and additions occurred throughout the years, including a four-story addition in 1960. It raised the bed capacity to 214 and added new surgery, maternity, emergency, pharmacy, radiology, and lab, which included pathology. Also in 1960, the Helen Keller Hospital Volunteer Auxiliary was formed.
In 1979, Colbert County became Helen Keller Memorial Hospital, in honor of the courageous Tuscumbia resident. A dedication celebration is marking the renaming hosted in 1980.
Constant updates and renovations allowed Helen Keller Hospital to offer leading edge technology and services, including new ER and surgery suites, a hospital-based ambulance service, the Sleep Disorders Center, and more. In 1999, a grand opening held for the new ER, Women's Center, Radiology, and Admitting areas. These renovations brought the ER up to 18 beds, with dedicated trauma rooms and rooms equipped with x-ray capabilities. The Women's Center added larger, LDRP-capable rooms, with a larger nursery.
The Keller Outpatient Surgery Pavilion opened in 2009, featuring leading-edge surgical suites and equipment, private parking, and a comfortable waiting area. The Keller Imaging Center opened in 2010, providing a full array of imaging equipment in a convenient outpatient setting. The center also features a dedicated women's imaging center.
Constant updates and renovations allowed Helen Keller Hospital to offer leading edge technology and services, including new ER and surgery suites, a hospital-based ambulance service, the Sleep Disorders Center, and more. In 1999, a grand opening was held for the new ER, Women's Center, Radiology, and Admitting areas. These renovations brought the ER up to 18 beds, with dedicated trauma rooms and rooms equipped with x-ray capabilities. The Women's Center added larger, LDRP-capable rooms, with a larger nursery.
In 2003, the Keller WellCare Center was expanded. Keller added a therapeutic pool, hot tub, sauna, and state-of-the -art cardiopulmonary rehab equipment. Outpatient rehab and sports medicine relocate to the WellCare Center, allowing for additional equipment treatment rooms and services.
2005 brought the opening of the Kid's Place Pediatric Unit. The unit offers kid-friendly treatment rooms and equipment.
In 2014, Helen Keller Hospital entered into a long-term lease agreement with the Huntsville Hospital Health System. It is a 40-year agreement, where Huntsville Hospital Health System will assume all responsibility for the operations and facilities. The Huntsville Hospital Health System board of directors approved a 13 member advisory board for Helen Keller Hospital, comprised of 7 community members and six members of the medical staff.
In 2015, the Keller Infusion Center moved into a larger, more state-of-the-art location in the 1100 Professional Building on the hospital's campus.
Highlights
- Awarded Gold Seal of Approval Accreditation from the Joint Commission
- Recognized at the Alabama Quality Forum as one of the Best in the State for Low Infection Rates
Economic Gain/Impact
- Over 3,100 Jobs
- Over $200,000,000
Huntsville Hospital System Savings – Over $1 Million/Year.
Mission, Vision and Values
Mission Statement: Decatur Morgan Hospital is committed to meeting the health and wellness needs of those we serve through compassionate care, innovation, and medical excellence. This commitment supported service, technology, and dedication to continuous quality improvement.
Vision: To provide quality care that improves the health of those we service
Values: To be one of the best health systems in our region and consistently strive to provide clinical and service excellence.
Compassion, Accountability, Safety, Excellence, Integrity, Innovation
Governance
Health Care Authority Board of the City of Huntsville
The Health Care Authority of the City of Huntsville governs the Hospital. A nine-member volunteer board. Members are appointed by the City Council of Huntsville from a list of nominees which are submitted by the Authority. Alabama state law permits the hospital to interview prospective candidates to determine their interest and understanding of health care issues, their willingness to serve and their availability to attend meetings. The appointment process ensures that the board represents the best interests of the community.
Community Demographics
Figure 1. Helen Keller Hospital located in the Tennessee Valley
Hospital Statistics
Table 1
Services
- Emergency Services at two convenient locations
- General and acute inpatient care
- Numerous surgical specialties
- Behavioral Medicine including inpatient programs for adults, adolescents children, and senior adults
- Sleep Disorders Center including pediatric sleep studies
- Breast Health Services including digital mammography, stereotactic breast biopsy, and ultrasound
- Outpatient Services including Lab, Radiology/Imaging Services, Nuclear Medicine and CT
- Inpatient and outpatient physical therapy, occupational therapy and speech therapy
- Women’s Services including Urogynecology
- Labor and Delivery
- Orthopedics
- Pediatrics
- Respiratory Therapy Services
Wellcare
In 2003, the Keller Wellcare Center expanded. A therapeutic pool, hot tub, sauna, and state-of-the-art cardiopulmonary rehab equipment are added. Outpatient rehab and sports medicine relocate to the Wellcare Center, allowing for additional equipment treatment rooms and services.
2005 brought the opening of the Kid's Place Pediatric Unit. The unit offers kid-friendly treatment rooms and equipment.
In 2015, the Keller Infusion Center moved into a larger, more state-of-the-art location in the 1100 Professional Building on the hospital's campus. 2003, the rooms and services.
In 2015, the Keller Infusion Center moved into a larger, more state-of-the-art location in the 1100 Professional Building on the hospital's campus.
Quality Improvement
To see Helen Keller Hospital's scores as they compare nationally and locally, visit the Hospital Safety Score website at:
Other Services include:
- Ambulance Service
- Anesthesiology
- Behavioral Health
- Bereavement Services
- Breast Center
- Cancer Services
- Cardiac Catheterization Lab
- Cardiopulmonary Rehabilitation
- Cardiopulmonary Services
- Cardiovascular Services
- Diagnostic Imaging
- Dietician Services
- Educational Classes
- Emergency Department
- Endoscopy
- ENT/Plastics
- General Surgery
- Geriatric Services
- Health and Fitness Center
- Heart Care
- Home Health
- Home Infusion
- Home Medical Equipment
- Hospice
- Imaging
- Infusion Center
- Intensive Care Unit
- Interventional Radiology
- Joint Camp
- Keller Home Medical Equipment
- Keller Hospice
- Keller Wellcare Center
- Laboratory Services
- Maternity Services
- Interventional Radiology
- Neurology Services
- Newborn Nursery/Neonatal Care
- North Alabama Neuro-Stroke Network
- OBGYN
- Occupational Health Program/Occupational Therapy
- Ophthalmology
- Oral Maxillofacial Surgery
- Orthopedics
- Outpatient Surgery Pavilion
- Palliative Care
- Pediatrics
- Pharmacy
- Physical Therapy
- Pulmonary Rehabilitation
- Radiology
- Sleep Disorders Center
- Speech & Language Therapy
- Sports Medicine & Rehabilitation/Sports Training
- Stroke Services
- Surgical Services
- Urgent Care
- Wellcare Center
- Women's Center
- Working Fit
- Wound Care
Foundation
The Helen Keller Hospital Foundation is a non-profit 501(c)(3) charitable organization. The Foundation's purpose is to secure financial resources for the continued development of healthcare in the area by providing support to HKH and the region it serves.
The Foundation is managed by a volunteer Board of Directors and is staffed by Hospital employees. The Foundation is governed by a volunteer board of trustees from Colbert and Franklin Counties and meets bi-monthly. All members are volunteers. The Foundation receives and manages gifts and grants from individuals, corporations and other foundations that benefit students and programs.
Helen Keller Foundation hosts a variety of Fundraisers to raise money for the Hospital. Contributions have helped fund many important programs and services, including the following:
Previous Projects Funded by the Helen Keller Hospital Foundation:
- Outpatient Infusion clinic
- Women’s Center, Labor and Delivery
- Kanuru Hospitality House
- Renovation of Keller Wellcare and new equipment
- Funding construction of our Intensive Care and Progressive Care Units
- Palliative Care Suites
Foundation special events include:
- Mardi Gras Luncheon and Fashion Show each February
- Spring Dinner and Silent Auction
- Annual Golf Tournament at Robert Trent Jones
Helen Cares
Ongoing support demonstrates the community's trust in the hospital, moreover, its recognition of the need for the finest facilities, staff, and services.
Red Bay Hospital
Red Bay Hospital (RBH) is an affiliate of Helen Keller Hospital. RBH fills a valuable role as one of the few Critical Access Hospitals in the State of Alabama. It not only provides much needed routine medical services but is an emergent safety net for rural areas to stablilize and transfer patients as needed to appropriate secondary and tertiary medical centers.
Research shows that once a community loses its hospital, other health services (i.e., physicians, pharmacies) will soon exit the community. Most residents are not aware of the fact that the health sector, anchored by a critical access hospital, is responsible for some jobs and payroll. These speak to the importance of the essential employment role and economic contributions of the hospital for the community.
https://ruralhealthworks.org/wp-content/files/Impact-of-CAH-Study-NEW-FORMAT-0907
https://ruralhealthworks.org/
Volunteers
HKH greatly appreciates the dedication and hard work of all our volunteers. The Hospital and coworkers are so thankful for every person who shares their time to volunteer at Helen Keller Hospital.
Thanks to the volunteers for caring so much for our community!
Economic Impacts
The U.S. Department of Commerce’s Bureau of Economic Analysis developed economic multipliers that aimed at estimating how much economic resources or currency turnover within a particular geographic or catchment area. It is as a result of an organization or institutions’ financial disbursements within a particular major geographic metropolitan area or a specific large concentration of smaller rural communities.
In rather simple terms, economic impact multipliers are a valuable metric in identifying how an entity or institution financially influences their local community. This is by taking into account several variables such as the cost of the product(s), labor costs, utilities and the purchase of goods and services within the local communities. As a partially financed health care authority hospital, we will also need to evaluate how this economically affects our catchment area of northwest Alabama.
Economic multipliers are metrics on how much of a total economic impact an area community receives as a result of that particular institution or organization. Intuitively, a dollar spent at a local establishment or business, that money is redistributed for payroll, taxes, utilities, and other expenses to some other local company, business or individual. This “money” will churn or recycle in the community. However, some will “leak” out to pay for goods and services purchased outside the area. Recipients of the money in the local area will continue to spend part of the money within the area for goods and services (and hopefully retain a portion of disposable income). It will continue until virtually all of the money depletes through this leakage.
Figure 2. An example of a Multiplier Effect (2.0639), Leakage ($1) and Turnover (7 Times), which is how many times the money turns over.; This is purely for illustrative purposes. Payne Consulting, LLC
One needs to explore the Hospital’s economic impact on the geographic area, such as the dollars used to pay for goods and services and faculty/staff salaries. As mentioned earlier, each dollar spent generates additional spending, which multiplies the economic impact and improves the economy of the local area. The Hospital’s coworkers influence economic growth, as well as noneconomic growth, through increased personal income and lifestyle that can be correlated with better levels of education.
HKH has an important economic and non-economic effect on the region’s economy and society. It enables the State of Alabama to attain more social support services and strengthen the State of Alabama infrastructure. The annual State and local Fiscal Impact (sales and income tax as well as property tax) run about $5 million for 2016 (See Table 1).
Helen Keller Hospital creates a large number of indirect employment opportunities (a 2.033 employment multiplier) for individuals in the area. Also, Decatur Morgan Hospital employees who own local homes represent an induced stimulus to the region’s residential construction market via purchases, property taxes, and utility payments which add to the revenue for road, power and water operations and infrastructure.
The Hospital’s overall budget for the 2016 fiscal year is significant. These expenditures include salaries, operating expenses, maintenance costs, and construction of capital projects, renovations and auxiliary enterprises, as well as numerous purchases of goods and services that contribute to the local economy.
Table 1. Sources: millage https://www.tax-rates.org/alabama/property-tax. Sales tax multiplier – Economic Impacts of the University of Alabama, Culverhouse College of Commerce, April 2016. Total Impact Multiplier - RIMS regional data.
Helen Keller Hospital is one of the largest employers in Colbert County, with over 1,300 employees. The Hospital creates a cumulative total of over 1600 employment positions in the local area. (See Table 1). Also, it is assumed HKH employees who own homes represent an induced stimulus to the region’s residential construction market via purchases, property/sales taxes, and utility payments which add to revenue for road, power as well as water operations and infrastructure.
https://ruralhealthworks.org/tools-templates/economic-impact/
Economic Impact of Physicians
Table 2.
Economic Impact – Huntsville Hospital
HKH recently celebrated the 6th anniversary of the affiliation between HKH and Huntsville Hospital. As a direct result of the coordinated efforts and interactions with our Huntsville Hospital counterparts, HKH cost savings for 2016 are already projected to exceed $1,000,000. Both the Board of Advisors and Administration are enthusiastic about the progress and direction of our affiliation.
Non Quantifiable/Social Impacts
Several intangible benefits of a community hospital cannot be quantitatively measured. The hospital produces skilled and knowledgeable members of society, adds to the reserve of knowledge, and is an economic engine for northern Alabama communities.
Volunteers
78 Adults, 27 Teens
Complete Woman
Hosted 4 CW events
Let’s Pretend Hospital
In conjunction with Calhoun Community College, education was provided to 1,487 students with 22 schools participating.
HHSYS Medical Mobile Unit
The Mobile Medical Unit (MMU)
Huntsville Hospital Health System's MMU allows clinical specialists to promote preventive health care through community screenings and education. The program was created with the belief that every person, regardless of financial means, deserves high quality, community-based, comprehensive care.
Why is the MMU vital to the community?
Community health screenings are an excellent way to raise awareness about common diseases. In some situations, health screenings can detect problems early, when chances for successful treatment are greatest. The full benefit is realized when patients take the next step – consulting with a physician for diagnosis and treatment.
Our services include
- Access to general health care
- Education for preventable and manageable diseases
- Routine screenings such as cholesterol, glucose, height/weight, blood pressure, lung function, bone density and more
- Statewide disaster relief
Goal
To bring quality health screenings and educational programs to surrounding neighborhoods, help individuals make positive health and wellness choices and strengthen disaster relief efforts statewide.
The Mobile Medical Unit was purchased with funding from the Huntsville Hospital Foundation.
Supported 21 Events and Health Fairs
Teddy Bear Clinics - Hosted 4 TBC for preschoolers
HKH contributes to not only health and wellness but “intellectual capital” to the community social/public environment as well as the overall economy. The Hospital encourages innovation by stressing critical thinking and analytical skills, as well as contributing to the area business development, management, leadership, and entrepreneurship. It is in addition to a positive impact on society and civic membership enhancement to improve the quality of life in North Alabama.
Many faculty and staff of HKH, apart from their daily responsibilities, spend personal time providing leadership to a range of community organizations.
Hospital co-workers and medical staff have a positive influence on the Hospital and area communities. HKH has a reciprocal impact on the faculty and employees as well. The staff and faculty provide an economic and non-economic impact of programs, services, and operations by creating and facilitating economic and social activities of which students and residents of area communities may also participate.
The Hospital positively influences the lives of citizens in the vicinity, contributing to the culture, and strengthening the local quality of life in ways that are not readily quantifiable. These include:
- Business and industry interaction
- Consulting
- Sponsorship and participation in civic and social events/activities
- Community civic organizations
The Hospital offers opportunities to promote clinic staff, administrative support personnel and medical staff quality of life. They have an ability to practice their trade, enhances prosperity as well as cultural growth. Medical staff, in turn, heighten the reputation of the Hospital, mentoring and adding to the intellectual treasure of the North Alabama area. Hospital coworkers, as well, play important roles in supporting practitioners and allied health providers.
Externalities
Characteristics or externalities of a healthier population include a higher income and avoided costs to society, such as:
Less underemployment
Mental well-being
Lower crime rate
Fewer social services needed
Lower obesity
Smoke less and lower drug dependency
Can stay in the workforce longer
Conclusion
The composition of a community hospital’s impact can be quite different from that emphasized in a larger medical center economic impact study. Economic impact assessments often concentrate on larger facilities.
The total economic impact does descend when compared to a large tertiary teaching medical center. A medium size hospital may exclude some revenue-producing economic activities, such as academic and tertiary care services, and group purchasing, but impacts can still be significant. Medium size hospitals can play a major role in the economic, social and academic impact on the local communities.
The economic and non-economic/social consequences of HKH on northeast Alabama regional area geographic area exceeds those presented in this report, as some impacts are difficult to quantify. There is less known about the impact of smaller hospitals or their effect on the surrounding communities.
Such hospitals can have a substantial economic impact on their geographic area. It makes Helen Keller Hospital crucial to the economic, social, civic, and academic development of the geographic area, and in many ways the State.
Respectfully Submitted by:
Cary Payne, MA, MHA, Lt. Col. (Ret) Kim Lafevor, DBA, SHRM
Executive-in-Residence Professor Dean, College of Business
President, Alabama Rural Health Resource Center
Athens State University
256-777-1596