Phoebe Putney Pursues Growth But With Caution

Barbara Kieker

Wednesday, April 7th, 2010

With state legislators considering some form of hospital tax or fee to offset shrinking state revenues, Phoebe Putney Memorial Hospital is being cautious in the way it runs its business.  In an organization where labor costs represent 60 percent of operating expenses, the hospital carefully evaluates all expenses.

“We have been very conservative in our operations in the hope that we can avoid eliminating any of the programs or services we currently provide,” said Joel Wernick, Chief Executive Officer of Phoebe Putney Health System.

As a not-for-profit hospital, Phoebe Putney provides more than $120 million in community benefits and is the region’s largest safety net hospital.  According to Wernick, if the state were to impose some form of tax on hospitals, then Phoebe Putney’s administrators may be forced to cut back programs that are in some way less important or less cutting-edge.  He declined to speculate on which programs those might be.

Playing Offense

Even as Wernick keeps an eye on state budget debates, he oversees numerous growth initiatives that include expansion outside of Albany, investments in technology and new medical education programs.

“Personally I enjoy playing offense more than defense,” Wernick said.  “Phoebe Putney always has been a growth organization and we are expanding its size and the extent of its involvement even in these tough times.”

Phoebe Putney is in the process of reconstructing the hospital system in Americus, Ga. that was destroyed by a massive tornado in 2007.  Construction on the facility is under way as is recruitment of physicians to replace staff who left the area following the storm.

According to Wernick, the hospital is continually looking to provide services that are currently unavailable in the region.  For example, Phoebe Putney is currently evaluating the acquisition of a da Vinci Surgical System for use in minimally invasive robotic surgeries.

“In certain prostate and gynecological procedures, robotic surgery is now almost the standard of care.  We want to provide that service locally so patients don’t have to leave the region to receive care,” Wernick said.

This August, the first group of 17 full-time Medical College of Georgia students will receive hands-on clinical experience at Phoebe Putney as part of their third and fourth year curricula.  Students will receive instruction in a former middle school across from Phoebe that has been renovated and transformed into the first satellite campus for MCG. Phoebe Putney already offers a family care residency program that graduates about six family care physicians per year.

“We have projected a shortage in primary care physicians for some time and worked to establish programs that will bring more physicians to the Albany area,” Wernick said.

Working with Local Businesses

Phoebe Putney is aggressively trying to retain the conveniences and feel of a small town hospital while providing advanced services for Albany residents.

“We can provide all the major services of a nationally known hospital with the exception of major organ transplants.  Yet patients can still park by the hospital’s front door.  We think that combination is one reason companies and their employees choose to locate in Albany,” Wernick said.

Additionally, the hospital works with local businesses on preventative medicine and wellness programs.  For example, it is currently working with the Albany Fire Department to improve fitness among its employees.  The hospital’s wellness department can assist with lifestyle assessments, quit-smoking programs and other programs to address risky lifestyle behaviors.

“Most business leaders recognize that the cheapest form of health care is no service at all.  It pays to keep employees healthy and fit ,” Wernick explained.

For more information on Phoebe Putney Memorial Hospital and its programs, visit www.phoebeputney.com - Also read more about Phoebe's impact on the region from a recent report from the Georgia Hospital Association.

About Barbara Kieker

Barbara Kieker is a freelance writer who writes on business-related topics for a number of web-based properties. She also provides communications services to Fortune 500 corporations, small businesses and nonprofit organizations.