Estes Park Health Proposes Phase II Strategic Actions

At their Monday September 18^th Board Meeting, Estes Park Health’s leadership proposed a series of Phase II Strategic Actions that, if accepted by the Board, would help enable Estes Park Health to accomplish its primary goal to continue to provide high-quality health care services to our Estes Valley residents and visitors for many years to come.

Estes Park Health has set two financial targets to support achieving its primary goal: 1) From Healthcare Services Operations, an annual 3 percent positive net margin, or at least break even.  Estes Park Health had accomplished this financial target before the COVID-19 pandemic. 2) From Non-Healthcare Services Operations, an annual positive $3 million contribution to capital projects.

In July 2022, Estes Park Health had announced a series of Phase I Strategic Actions. These actions were expected to reduce the $7 million loss in 2022 from Healthcare Services Operations to a 2023 Budget loss of $3.9 million.  n the 2023 EPH Budget, the Healthcare Services Operations loss was offset by Non-Healthcare Services Operating revenues of positive $4.8 million. So, the overall impact of the Phase I strategic actions on the 2023 budget was expected to be a positive $1.2 million increase in overall Net Assets, with a positive $5.1 million in earnings before interest, taxes, depreciation, and amortization (EBITDA).

While the impact of the Phase I Strategic Actions on the 2023 Budget projections have been very positive, the estimated $3.9 million loss in Healthcare Services Operations in the 2023 Budget did not meet EPH’s goal of an annual 3 percent positive net margin, or at least break even. As a result, additional strategic actions to increase revenues and reduce expenses are needed to ensure Estes Park Health’s long-term financial viability and its ability to provide high-quality, sustainable healthcare for our Estes Valley residents and visitors for many years to come.

To accomplish Estes Park Health’s long-term finances targets, Estes Park Health Leadership proposed the following Phase II Strategic Actions.

Proposed Administrative Changes: Workforce organization optimization, Healthcare Services Chargemaster assessment and market alignment, Continued Revenue Cycle optimization, Telecommunications and Telehealth Services optimization, 340 B Drug Program optimization, and Environmental Services (EVS) optimization.

Proposed Healthcare Services Changes: Implement Phase One Cardiac Rehabilitation, Implement Dietary Services in Phase One Cardiac Rehabilitation, Implement Phase One Pulmonary Rehabilitation, Sleep Lab optimization, Implement Mobile Positron Emission Tomography Imaging, Implement Critical Access Hospital Ambulance Service, Implement Urology Services, Optimize Orthopedic Services, Fluoroscopy optimization, Evaluate Home Health, At-Home Hospice, Home Care Services for transfer to alternate providers.