Statement of Operations
Natchaug Hospital continues to balance its mission of meeting the healthcare needs of the community in an increasingly volatile behavioral health environment that includes uncertainty surrounding the affordable care act, declining state and federal reimbursement and economic challenges on the state and national level.
Natchaug ended the year with overall volume decline of 0.9% from the prior year — the third year in a row that it had experienced volume declines:
Natchaug saw a slight increase in inpatient volume
The residential girls program saw a 4.6% decline year over year
The Partial Hospital and Intensive Outpatient levels of care saw modest increases in volume.
Natchaug saw a decline of 3.7% from prior year levels in its school programs, the fourth successive year-over-year decline.
In Addition:
The average daily number of patients in the hospital was 51.4, which is 90% capacity and an increase of 0.2 percent from the prior year.
The Journey House program had an average daily census of 10.3 residents. While the prior year’s softening census continued in to the beginning of this year, during the last five months of the year the trend reversed and Natchaug ended the year at full capacity (12 residents).
The hospital’s ambulatory programs provided care for an average daily census of 240 clients, an increase of 1.2 percent from the prior year.
Natchaug saw a 12.3% decrease in services provided in our in-home service programs.
Our school programs provided education to an average of 154 students each day.
Natchaug continues to invest significant resources in its quality and patient experience initiatives in to be the preferred provider of behavioral health care services in New London, Windham and Tolland counties. During the year we continued to work with partners across the Hartford HealthCare Behavioral Health Network to identify and meet the mental health and substance abuse needs of our communities. Natchaug saw initial success in two important initiatives — embedding behavioral health clinicians in primary care practices and the establishment of Medication Assisted Treatment Close to Home (MATCH) programs in eastern Connecticut. The new Older Adult Program at Windham Hospital continues to grow to levels reflective of the needs of the elderly population in this region.
All of this despite the fact that Natchaug’s reimbursement under Medicaid for its significant volume of Partial Hospital and Intensive Outpatient was dramatically reduced as the State rescinded a long-standing rate agreement with the hospital. This $1.2-million-annualized reduction in addition to the state’s refusal to Natchaug on the general hospital inpatient reimbursement methodology (a $1.3 million cost) will present significant challenges to the Natchaug going forward. Natchaug supporters continue to advance discussions with the state to find an agreeable resolution to these issues.
Despite financial struggles, Natchaug began the process of implementing a new electronic health record, successfully converting our inpatient units to the EPIC platform. This is in alignment with an HHC strategy to have a single electronic health record to enhance the patient experience, coordinate patient care and drive improved outcomes.
In this new healthcare environment, it is increasingly important that we develop and maintain partnerships with our community, and thank everyone who has supported us over the past year — community partners, advocates, donors and our valued staff.