Southwest Health in Cortez spotlights fiscal report during community picnic

National Hospital Week celebrations at Southwest Health System continued Wednesday with a community picnic featuring a free lunch and presentations from hospital leaders highlighting the system’s performance, growth and achievements over the past year. (Anna Watson/The Journal).
Officials say the hospital remains financially competitive; residents and staff can now read the report online

Southwest Health System leaders highlighted expanded medical care, investments in employees and a unified patient records system during the organization’s annual community picnic in Cortez Wednesday.

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The upbeat, outdoor event served a free lunch to employees and other supporters, coinciding with Hospital Week celebrations. It also doubled to debut aspects of last year’s annual report for the hospital serving Cortez and wider Southwestern areas.

Earlier this year, CEO Joe Theine announced potential shake-ups due to a likely lapse in federal funding derived from House Resolution 1 policy changes.

In addition to rural healthcare challenges, Theine said, the changes may bring millions in annual income losses. He told the board of Montezuma County Commissioners in March the hospital is looking at whether additional services could be expanded in areas where revenue exceeds costs.

Hospital leadership, however, emphasized 2025 as a fiscally solid year.

While the annual report features unaudited numbers, the hospital received about $72.9 million in patient revenue, with additional income from the sales tax, grants and nonoperating revenue bringing the total to about $86.3 million. The hospital spent about $80.5 million operating the system. The largest expense was employee pay and benefits at nearly $45 million.

Chief Financial Officer Adam Conley said that the initial fiscal report was overly conservative, whereas the official audit reflects a more accurate 3.3% operating margin.

“Operating expenses were still higher, about a 3.3% operating margin, but most hospitals are not posting at a three percent margin, so we continue to perform against our competitors,” Conley said.

Employees, medical staff and community supporters gather Wednesday at Southwest Health System in Cortez for an annual community picnic. (Anna Watson/The Journal)

The hospital served nearly 40,000 primary care visits and reached the visit barrier for emergency care at 14,067 visits.

Chief Medical Officer Jennifer Gero highlighted the integration of outpatient and new medical records to a single electronic platform. She said it is a “huge celebration” going forward, unifying the system and making the search of someone’s medical file easier.

The report highlights several accolades, including five-star ratings for both overall hospital cleanliness and nursing communication. The distinction for nurses comes from the Centers for Medicare and Medicaid Services survey evaluating patient experience on 10 measures, including skills related to respect, listening, explanation and effective communication.

“We are so proud of that accomplishment. When you interact with our nurses, please tell them thank you,” said Nikki Young, quality coordinator, during the presentation.

A patient room inside Southwest Health System. The hospital highlighted its recent five-star cleanliness rating during presentations, saying it was among a select group facilities nationwide. (Anna Watson/The Journal)

The birthing center received a “birthing friendly” designation in response to 2024 work to improve maternal safety, risk and postpartum services. The standards are quantified by CMS’s maternal morbidity structural measurement and emphasize care throughout birthing stages. The hospital highlighted the creation of an interdisciplinary maternal care team – including pharmacy representation – as a key distinguisher leaders believe other hospital do not offer.

Theine in remarks pointed to welcoming new staff last year and investments to expand training and onboarding focused on conflict-driven scenarios. Three new physicians were recruited, providing services in primary care, podiatry and internal medicine.

Theine said employees now receive behavioral training designed to help them better understand and work with people experiencing health crises or those in pain.

“It is not to be in conflict but working in concert with each other,” Theine said. “Its becoming a part of our care and how we care for each other to create baseline standard conditions.”

awatson@the-journal.com



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