4 min read August 2023 — Invest: caught up with Don Mueller, president and CEO at St. Christopher’s Hospital for Children, to understand why the hospital is an “essential community asset,” their huge financial turnaround coming out of bankruptcy, and the impact of gun violence and childhood obesity. He says, “St. Christopher’s is an essential community asset. The support we receive from the community is a gold seal of approval because it shows how vital we are to a flourishing Philadelphia.”
What are some highlights and milestones for St. Christopher’s Hospital for Children in 2023?
St. Christopher’s is an essential community asset. The support we receive from the community is a gold seal of approval, because it shows how vital we are to a flourishing Philadelphia. This past year, St. Chris received extraordinary support — $54 million dollars — from Temple Health, Einstein/Jefferson Health, Philadelphia College of Osteopathic Medicine, Children’s Hospital of Philadelphia, and significant support from Independence Health Group. That money was designed to support us for two years, as we were coming out of bankruptcy. It builds upon extraordinary support from Tower Health and Drexel University, and it gives us the runway to become financially stable and sustainable. The first year I was here, the hospital lost $97 million. Last year we cut that deficit to $10 million. It is a huge turnaround in a short period of time. We are forecasted to do better than that this year, perhaps even breaking even. There were multiple factors that allowed us to turn it around financially. We reduced expenses and maximized partnership opportunities. Also, we maximized reimbursement so we could get better allocations and other financing. We received money from the state and the city to move things forward, and we are grateful for those resources. We also launched a new development program to give people opportunities to support St. Chris and our mission, so some funding comes from there as well. We also have $16 million in capital projects underway, revitalizing equipment and our buildings to better serve children. That investment helps us to provide high quality care for kids, despite an extremely challenging reimbursement situation. We have the highest percentage of patients with Medicaid insurance of any academic children’s hospital in the United States, with 85% of our payments for services coming from Medicaid. Medicaid pays less than the cost of care, so you can’t make it up with volume. We are reliant on supplemental funding from the city, state, and federal government.
What challenges are you currently experiencing at St. Christopher’s?
Staffing was a major constraint during the pandemic. When COVID hit, we lost a lot of the workforce. Some students quit instead of graduating because they saw significant challenges ahead. Staff close to retirement left, and we had to backfill that. We went through a staffing deficit during that time, but we have done a great job in hiring people to fill those jobs. We are in a much better spot now. Thankfully, many traveling nurses have returned to the hospital, and that is also increasing our staffing. The economics of travel nursing don’t work for any hospital, on top of inflation and supply chain issues. Folks have to get back to a more standard way of working. Now we are looking to fill more beds, take care of our patients, and increase the community’s ease of access to services.
What would Philadelphia be missing if St. Christopher’s wasn’t in the picture?
We do a whole lot more than provide healthcare. We address social determinants of health, more than any other children’s hospital I know. We are at the center of a community with immense challenges. But that community is very resilient. And they rely on St. Christopher’s. During the pandemic, we gave away tens of thousands of meals, as well as clothing and books, and we provided free COVID testing in our parking lot. There are so many things that we do, and the economic implications are huge. If we were not here, it would tax the other health organizations in the region: it would impact every institution in town. We are also a massive training center for healthcare jobs, with over 1,800 students going through St. Christopher’s in the last year in a wide range of disciplines. Philadelphia would feel a big impact if we were not here. Our Bariatric program is a great example of St. Chris making a difference, because obesity is skyrocketing in children. Severe obesity has a significant impact on kids’ health, which only compounds as they get older, but we can intervene and help them to live healthier and more productive and fulfilling lives. We also deal with things many other hospitals don’t. We treated 47 gunshot victims last year, and we have treated more than 30 since January—and we are only halfway through the year. We have seen an increase in suicide among kids 5 to 11 years old. These are things a lot of other hospitals don’t see, and we need to be there to support these children and the community.
What is your outlook for the next three to five years?
My perspective is unique because I started at St. Chris during the pandemic. I couldn’t even shake anyone’s hand at my interview! My entire understanding of Philadelphia started in June 2020. The trash trucks were on strike and restaurants were not open. My view of Philly has changed dramatically since then. Now, we are working to invest in the right areas, but if we don’t deal with violence and social justice issues, I’m not sure what the future will be. I believe we will deal with these things because this is such a resilient place. I am hopeful that both government and private industry will step up to help create the programs and opportunities we need to make that happen. Our biggest root issue is poverty, so we need to reinvest in our people to create good jobs in our area. I know that working together we can make great things happen.
For more information, visit:
https://towerhealth.org/locations/st-christophers-hospital-children
