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RiverView Health Association holds its 127th Annual Meeting

RiverView Healthcare Association members heard the highs and lows of 2024 virtually Monday, Jan. 27, during the Association’s 127th Annual Meeting.

Betty Arvidson, CFO, shared preliminary financial information for Fiscal Year 2024, from Oct. 1, 2023, through Sept. 30, 2024. Unfortunately, RiverView was one of the many healthcare systems across the United States impacted by the February 2024 Change Healthcare cyberattack, which created a backlog of unpaid claims. Therefore, the final 2024 numbers are yet to come. However, it is clear that a substantial loss occurred for the organization.

Carrie Michalski, President/CEO, followed Arvidson’s report, saying 2024 was the organization’s third consecutive extremely challenging financial year. “We had projected three very lean, breakeven to slight loss years after opening our new hospital with the increased interest and depreciation expenses that came online at the completion of the $54 million project. That was planned. What wasn’t planned was the COVID-19 pandemic and the disruption that would bring to the workforce and supply chains around the globe inevitably led to multiple years of hyperinflation. The reality is we cannot recover simply by reducing waste and creating higher efficiency.  To maintain access to current programs, investing in government payers paying their fair share of costs is necessary.”

According to Michalski, Medicare and Medicaid patients make up over 50 percent of RiverView’s business. Unfortunately, Medicare only reimburses 99 cents on the dollar for the actual cost of care, while Medicaid’s reimbursement covers approximately 68 cents on the dollar. In 2023, RiverView’s subsidy for care to Medicaid recipients was $3.6 million.

Beyond subsidizing unpaid government-run health insurance programs, RiverView also provides free training to future healthcare workers, offers health-related education for the community, and charity care for the uninsured. Over the past five years, RiverView’s total charitable community benefit giving has equaled 5-7.5 percent of its total expense structure.

“Even in trying times with negative operating margins, our commitment to our community and especially the patients without the means to pay for emergency and lifesaving care is strong.” stated Michalski.

Although non-profit hospitals provide community benefits, their tax-exempt status has been under extreme scrutiny by the Legislature, Michalski reported. “RiverView has been recognized by the IRS as a tax-exempt charitable institution since 1948. But we cannot take that for granted and must reflect annually on the contributions we make to our community and the patients we serve.”

Seeking Solutions

To preserve access to healthcare services, Minnesota’s 140 hospitals have united to seek Directed Provider Payments (DPP) for Medicaid hospital patients.  This program could leverage an additional $1billion in federal investment in Minnesota hospitals annually, including over $2 million annually for RiverView Health.  Support is needed through Legislature, a partnership for administration with  the State of Minnesota, and federal approval.

Last week, Michalski and other hospital representatives asked Senate co-leader Senator Mark Johnson for support. They also provided testimony to the House Health Policy and Finance Committee. Forty-one other states already have an approved DPP program.

RiverView is also one of 18 independent rural hospitals that formed the Headwaters Network in April of 2024 to collaborate on clinical and operational initiatives to enhance the quality of care, availability, and affordability in rural communities. Michalski serves as a board member for the group, working toward gaining economies of scale to negotiate better and more fair contracts with larger insurers.

In the annual meeting keynote address, Brittany Sachdeva, chief clinical officer, and John  Naylor, strategic advisor of Cibolo Health, explained the vision of the Headwaters Network, which is sustainable rural Minnesota healthcare, healthy rural Minnesota people, and vital rural Minnesota communities.

Hitting the High Notes

Michalski’s presentation included the following highlights from 2024 and upcoming wins for the organization.

Orthopaedic Surgeon Brennen Smith, DMV, DO, started his RiverView practice, which includes hip and knee replacement procedures performed with the assistance of a robotic arm.

Mental health services were added with provider Justin Goff, MSSW. Jennifer Dotseth, PMHNP, will be joining the program soon.

Dr. Edmund Irankunda joined RiverView’s Emergency Medicine Team.

The RiverView Recovery Center and Care and Share of Crookston started collaborating on substance use education, assessment, and treatment with opioid settlement funds granted to Polk County.

Adelle Christianson, RiverView’s Operating Room/Same Day Surgery coordinator, was named the 2024 Employee of the Year. Christianson will be featured in an upcoming news release.

The Benedictine Living Community was awarded the 2024 Reaching Out to Serve honor and will be featured in an upcoming news release.

The addition of a family medicine provider and two internal medicine providers will occur in 2025.

The family medicine provider was hired through the Community Physician Recruiter Incentive Program, which is designed to engage the community in helping recruit physicians to RiverView. In return, the community member can be rewarded up to $20,000. More information is available at riverviewhealth.org.

Board of Directors

Outgoing board members Reed Engelstad and Garrett Borowicz were recognized for their years of service to the organization. Nicole Heldstab, Tanner Holten, Judy Hulst, all of Crookston, and Michelle Cote, Mentor, were elected to the board.

Dr. Erik Kanten and Kari Koenig were reelected. Other board members are Grant Gunderson, Tim Brinkman, Stephanie Harbott, Dr. Brett Vibeto, and Lori Keller.

2024 Proves Busy for the Auxiliary

Below are some of the highlights for the Auxiliary.

The volunteers hosted blood drives, delivered Home Delivered Meals, completed many sewing projects, participated in the annual teddy bear clinic, and held a hat and mitten drive.

Departments received grants amounting to $11,670 from the Auxiliary for the Reach Out to Read program, activity items for pediatric and swing bed patients, an upper body exerciser for Rehab Services, inpatient clothing, a pediatric adjustable height table, and the Sensory Santa event.

Scholarships were awarded to RiverView employees Evan Christianson and Mariah Stueness, who are pursuing healthcare degrees.

Twenty-eight volunteers donated 3,295 hours of their time and talents to RiverView throughout the year.

Kathie Barnes was selected as the 2024 Alta Hermodson Volunteer of the Year. She will be recognized at the Auxiliary Spring Meeting on April 9.

Auxiliary board members are Marlys Mjoen, Gloria Watro, Jean LaPlante, Jacqueline Cournia, Deb Normandin, Nancy Capistran, Judie Kanten, Kristie Ricard, and Deb Sylvester.

Foundation Raises Funds Benefitting Patients, Healthcare Students

Foundation Director Randy Schoenborn shared the following highlights of 2024:

Over $263,000 was donated through 487 gifts.

The annual golf classic raised more than $27,500. The 2025 event will be held on June 9.

The Foundation awarded area students pursuing healthcare careers nearly $44,000 in scholarships.

Nearly 300 donors gave over $173,000 for Giving Hearts Day, an online non-profit fundraiser.

The Foundation is gearing up for Giving Hearts Day 2025 on Feb. 13. That day, the Dakota Medical Foundation and other generous donors will match gifts to the Foundation up to $60,000.

Undesignated 2025 Giving Hearts Day contributions will be used to assist in replacing RiverView’s Intravenous (IV) Infusion System, utilized by the Inpatient Unit, Emergency Department, Surgical and Anesthesia Services, and Outpatient Nursing Infusions and Procedures.

Early giving is now open at https://rvhealth.org/GHD_2025.

For more information or assistance with a donation, contact Schoenborn at rschoenborn@riverviewhealth.org or call 281-9249.

The Foundation’s board of directors includes Marilyn Wentzel, Cory Dallager, Jodi Clauson, Tim Brinkman, Kari Koenig, Hunter Plante, Taylor Sannes, and Marcia Schoenborn.

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