South Shore Hospital's financial bottom-line was positive for the fiscal year ended September 30, 2002 by about $1.1 million on a $219 million base, but we sustained an operating loss of $1.6 million, our first red ink in 12 years. The reasons were unexpected widespread economic curveballs after the September 11, 2001 terrorist attacks. They also included expense increases unique to health care, including rising costs of pharmaceuticals, blood products, and advanced medical technology, as well as necessary expenses to maintain the quality that is South Shore Hospital's hallmark.
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We remain troubled and frustrated by the ongoing lack of collective leadership on health care issues at both the federal and state levels. Virtually no action was taken at the federal level to address major health care policy issues, including Medicare reform, prescription drug benefits, and patients' rights. Here in Massachusetts, cuts in Medicaid benefits and a broken system of caring for the uninsured are forcing hospitals to shoulder disproportionate financial burdens. |
| Some major health insurers continue to aggravate the equation by focusing more on their financial bottom-lines than on quality health care. Nevertheless, consumers' health care expectations remain high, and health care providers - the first line of defense - must meet those expectations with fewer available resources. The squeeze has never been tighter, and the system's underpinnings are weakening. |
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South Shore Hospital is not immune to this turbulence, but we continue to successfully deploy strategies that brighten our future prospects. The choices we've made in creating and expanding programs, services, systems, and facilities are investments in the well-being of the people of our region. They distinguish South Shore Hospital, and make ours an organization that patients consistently and enthusiastically recommend to others. |
We are confident that the choices we have made during these difficult times will strengthen how we benefit the community and maintain financial stability.
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Sustaining our mission would not be possible without philanthropy. More than ever, South Shore Hospital depends on community support to help build and grow the programs on which our patients depend. During a difficult year for charitable donations nationwide, South Shore Hospital supporters stepped forward as never before. More than 10,000 individuals, families, businesses, foundations, and other donors gave nearly $4 million in outright gifts last year. And the continuing success of our capital drive, The Promise Campaign, to fully equip our expanded maternity, surgery, and emergency services has been equally gratifying. At fiscal year-end, more than 90 percent of the $16 million minimum goal had been pledged or donated. |
We thank those who have helped, and we ask those who haven't to please consider the importance of South Shore Hospital to the well-being of our region.
How can the South Shore Hospital difference be summarized? It's our ability to offer our patients the high-quality, comprehensive, sophisticated care and services of a regional medical center.
The growing numbers of people trusting us with their lives and hard-earned dollars is indisputable evidence that we're on the right track and that, no matter what the obstacles in any year, it's all worth it.
Arthur R Connelly- Chairman of the Board
David T. Hannan- President and Chief Executive Officer