Business Sense of Hospital-Based Athletic Training Services

[Guest guest]

We are a community hospital that was just bought by a for-profit

company. I manage Rehab Services and we provide practice, event, and

training room only athletic training coverage for 3 of our local school

systems. In recent years we have charged a nominal ($1,500) fee to each

school for the service. For many years before, it was free.

The new owners understand all about the benefits of the service from a

physician referral and down stream revenue standpoint. I'm sure they

also get the community goodwill aspect of providing the service.

However, they are very careful about compliance and are concerned that

if we aren't receiving fair market value, we may be perceived as

violating anti-kickback laws. Also, they are very much in cash-flow mode

right now and are most focused on turning us from red to black. All

programs that don't turn a profit and fit neatly into our core business

are on the block. I have no judgement against any of this logic at this

point in our life cycle because preserving the core business is

paramount.

So, all that said, we are looking at creative ways to fund this program.

We were given a 1 year only grant from the county with the clear message

not to come back next year. We are looking into other grants and would

like to find some source of sustained funding. We estimate fair market

value right now to be about $185,000 which represents ATC salaries and

benefits from the previous year - simply a break-even price.

There is a large nonprofit hospital system nearby willing to provide the

service to the schools for free and, if we cannot find funding by the

end of this year the schools will look to that hospital for sustainment.

And of course, everybody understands that it will eventually mean the

placement of local clinics from this competitor. Again, we are at the

lowest level in the hierarchy of needs.

I don't think that there is a magic phrase to speak to the new owners

that will change their stand on the issue as we've done that from all

possible angles. So, I am looking for your suggestions for creative ways

to provide the funding.

Thank you,

Jim, PT