San Pedro Hospital Ends Deficit Years

San Pedro Peninsula Hospital has ended three years of red ink by posting a profit for 1990.

In an annual report released last week, hospital President John Wilson said the community hospital posted a $241,000 profit. The flow of red ink began in 1987 and totaled $10.6 million by the end of 1989.

Calling the change of fortune “absolutely phenomenal,” Wilson said San Pedro’s recovery is “the most significant turnaround of any hospital situation we know of.”

Wilson attributed San Pedro’s turnaround to a sharp reduction in expenses, which included laying off staff and closing money-losing programs, as well as upgrading and expanding high-use services such as obstetrics, outpatient surgery, skilled nursing and home care.

Up-to-date clinical equipment has been acquired, and 40 doctors--with their patients as potential hospital users--have joined the staff, which now numbers 150.

Wilson and Dr. David Campisi, hospital chief of staff, said they anticipate that 1991 will be even more profitable because first-quarter earnings have exceeded forecasts.

Campisi said the hospital was $250,000 ahead in the first quarter last year and is way ahead of that this year. However, he said hospitals traditionally do better in winter--the influenza and pneumonia season--than summer and added that some of that initial profit could be reduced in coming months.

Both men said that although San Pedro hospital has wiped out its deficit, it still faces problems common to all hospitals, including declining insurance reimbursements for services, increased costs and the shift from inpatient to outpatient care. Wilson said the turnaround for San Pedro is significant because “60% of hospitals lose money.”

“There’s no way to say any hospital in the country is in great shape,” Campisi said.

Two years ago, the financial problems led dissident members of the hospital corporation to attempt to replace the hospital board, but the move failed. Corporate members backed the hospital administration, which had launched measures to put the hospital back in the black.