On Thursday, June 2, Swedish and SEIU resumed bargaining. Swedish answered questions raised by the Union in its May 25 presentation. In general, there were questions about what SEIU 1199NW is calling the “Three I’s,” Issaquah, Investments and Investors, and how these impacts can be factored into Swedish’s presentation. Swedish responded to SEIU’s questions about the “Three I’s,” which we have clarified below:
SEIU: Issaquah will have better patient mix than First Hill, and could positively impact Swedish’s margin, so it should be included in the financial data.
Swedish: Although we hope that the patient mix and volumes will be better at Issaquah as compared to our other facilities, the payor mix is still unknown. We also anticipate that Issaquah volumes may initially negatively impact volumes at our other hospitals. It takes time for new facilities to generate revenue. Both Redmond and Mill Creek are still several months away from the breakeven point but this was expected and planned for.
SEIU: Swedish’s investments should be considered as part of the margin discussion, to provide a truer picture of Swedish’s financial situation.
Swedish: Swedish and SEIU have a philosophical difference on this issue. Swedish does not believe that we should be tapping into our investments, which is the same as our savings account, to cover monthly operating expenses. Our savings are critical to our financial standing, which is one of the most important things rating agencies look at when assessing our financial health. We are dedicated to being fiscally responsible stewards for the organization, and as such, we are committed to maintaining our savings.INVESTORS