The trustees and administration of Lincoln County Healthcare (LCH) have some very good news for the region. As of October 1, 2013, prices for many of its hospital services have been significantly reduced.  

Overall, prices for hospital services have dropped 7.1 percent, while the cost of care at the urgent care center on the St. Andrews Campus is roughly 30 percent lower. The $7.7 million in price reductions are part of a broader effort to improve access to healthcare services by making them more affordable.  

“I’ve been a healthcare administrator for more than 30 years,” said Lincoln County Healthcare President Jim Donovan. “Until now, every price reduction I was involved with was the direct result of a regulatory change of some sort. This is the first time I’ve had the opportunity to reduce prices simply to make services more affordable,” he said.

The price reductions, which apply to services provided on both the Miles and St. Andrews campuses, are the direct result of having a single licensed hospital serving all of Lincoln County. “We believe the number one barrier to accessible healthcare services is affordability.  Local access to healthcare is vitally important. But if patients can’t afford your services, local access is meaningless,” Donovan said.

While these prices reductions represent the largest reduction in LCH history, it’s important to note that the savings will be much more evident to patients who have private insurance with a high deductible, or who pay cash. 

“We recently completed a study of hospital and urgent care center prices using actual patient records from last year and applying them to our new charges,” said LCH Chief Financial Officer Wayne Printy. “For a self-pay patient, or a patient with a high deductible health insurance policy, appropriately using the urgent care center in Boothbay Harbor (instead of the Miles E.D.) can literally save the patient hundreds of dollars, and that’s not including the savings from lower co-payments associated with urgent care,” he said. 

Other hospitals services are now more affordable as well. “Lab tests such as a Comprehensive Metabolic Panel that used to cost $133 is now  $93. Overall, lab prices declined an average of 24 percent. Diagnostics such as a CT Scan of the abdomen and pelvis was $2,339 last year. Today we are charging $1,729 for the exact same procedure. Colonoscopy prices have been decreased 21 percent,” Printy said.

While the reductions are an important first step more work needs to be done. “Healthcare services are expensive regardless of where you receive them,” Printy said. “After we’ve had a chance to review how these cuts affect our overall financial status, we hope to complete a second round of cuts in mid-2014,” he said.

“The most important message I have for individuals who are interested in maintaining local healthcare services is this: Use our services when possible. Our ability to keep them affordable and available is directly related to the number of patients who use them,” Printy said.