UMC affiliates asked to cut fees
February 17, 2009 - 10:00 pm
In an attempt to save money, University Medical Center administrators have asked medical groups and contracted health care providers to consider taking less to help lower the public facility's growing debt.
The hospital is operating with a $39 million deficit, according to latest figures.
Seven contracts have been renegotiated in recent weeks in a way that would save Clark County's only public hospital about $1.3 million annually, or $9.5 million over the term of those contracts.
The providers' new contracts will be presented to the Clark County Commission today for approval, officials said. The individual contract concessions ranged from 4 percent to 20 percent, according to figures provided by UMC.
Rick Plummer, a UMC spokesman, said in an e-mail last week that Commissioners Rory Reid and Lawrence Weekly were instrumental in the contract renegotiations. He said Reid and Weekly attended some of the negotiations with Kathy Silver, the hospital's chief executive officer, in recent weeks.
Last month, and during the presentation of the new contract of a pediatric critical care physician's group to the commission, Reid brought up the idea of contract concessions. After the discussion, the commission directed Silver to inquire among physicians and physicians groups to see whether they would be willing to adjust their contracts to help UMC.
The hospital spends roughly $37 million honoring about 20 professional service contracts annually, officials have said.
While the contracts are vital in serving the medical needs of the public and maintaining the state's only Level I trauma center, trimming professional service contract costs by 5 percent to 10 percent could ensure other services are saved.
The contracts up for approval today are for the operator of UMC's HIV Unit and HIV Wellness Center and the groups: Obstetrical Anesthesia Services, Nevada Heart and Vascular, Associated Pathologies, Children's Lung Specialists, Hand Call Specialists and Urology Services of Nevada.
In addition, some physician groups restructured their contracts to help UMC save money before last month's meeting.
One new contractor, Stuart Pulmonary Associates, which provides physicians for UMC's pulmonary and respiratory, intensive care, and intermediate care units, agreed to a four-year contract that was 5 percent less than the contract awarded to the previous provider.
Contact reporter Annette Wells at awells@ reviewjournal.com or 702-383-0283.