OSF-SFMC Cost/Charge Ratio and Haitian Hearts

November 14, 2006

OSF-SFMC Cost/Charge Ratio and Haitian Hearts

I stumbled onto a website today at www.hospitalvictims.com. This service allows the general public to look at the cost/charge ratio of hospitals around the country. They also break it down and show you the same ratio for ancillary services in the hospitals. They compare the hospital that you search for to Johns Hopkins Medical Center to see how the hospital compares to Johns Hopkins, which is rated the number one hospital in the United States.

So I searched OSF-SFMC in Peoria and found the following statistics from this site:

1. The OSF-SFMC cost/charge ratio is 0.32 compared to Johns Hopkins which is 0.81.

2. At OSF-SFMC there is a 1,273% mark up for Anesthesiology. At Johns Hopkins there is a 107% mark up. (Yes, you read this correctly.)

3. At OSF-SFMC there is an 811% mark up for Laboratory. At Johns Hopkins there is a 126% mark up.

4. At OSF-SFMC there is a 545% mark up for Medical Supplies. At Johns Hopkins there is a 113% mark up.

5. At OSF-SFMC there is a 752% mark up for Electrocardiography (EKG). At Johns Hopkins there is a 100% mark up (which means that Johns Hopkins EKG’s are sold at cost to the patient).

6. At OSF-SFMC there is 381% mark up for Drugs Charged to Patient. At Johns Hopkins there is a 145% mark up.

7. At OSF-SFMC there is a 296% mark up for the Operating Room. At Johns Hopkins there is a 119% mark up.


These numbers are important to Haitian Hearts.

Paul Kramer, Executive Director of Children’s Hospital in Peoria, said OSF would write off $250,000 per year in charges for Haitian Hearts with the charges being 55% of total charges. For example if OSF’s total charges for a Haitian child was $100,000, OSF would subtract $45,000 and we would have about $200,000 left. Thus, we could have about four children operated per year. After we surpassed the $250,000 dollars in write offs, Mr. Kramer stated that Haitian Hearts would be responsible for 55% of total charges for additional cases.

Thus, Haitian Hearts, the mom and pop organization from Peoria, would be charged 55% of OSF’s very high charges with OSF’s costs only being 32%. If my math is right, OSF would be making money on Haitian Hearts patients at this point....55%-32%=23% profit Also, OSF gave a 56% discount to people with insurance, so this was better than the “deal” Haitian Hearts was obtaining. Haitian Hearts had no insurance and neither did the Haitian children.

Over the years, Haitian Hearts donated over 1.1 million dollars to OSF for approximately 3 million dollars of total charges. Again, if my math is correct, the amount that Haitian Hearts donated is close to 32% which is OSF’s cost for caring for the Haitian children and doing the Mission of the Sisters.