Spectrum Health raises prices 5.9 percent in Grand Rapids

Spectrum Health raises prices 5.9 percent in Grand Rapids

Spectrum Health Butterworth Hospital was founded in 1873 and is part of the Spectrum Health Medical Center in downtown Grand Rapids. Courtesy Spectrum Health

Spectrum Health prices at Grand Rapids hospitals and clinics will increase an average of 5.9 percent in FY2014, which begins July 1, according to its annual budget review.

The price increase will yield a 1.7-percent increase in revenue per admission and help replace an expected decline in Medicare and Medicaid payments in the new fiscal year.

Prices at Spectrum’s other facilities in West Michigan will rise by 3 percent on average, yielding a 1-percent increase in revenue per admission.


The system is budgeting an operating margin in FY2014 at the 2011 Moody’s Aa median of 3.6 percent.

Operating revenue in 2014 is expected to come in at $4.14 billion, with $3.99 billion in expenses.

In the year just ending, the operating profit is expected to be 4.9 percent on operating revenue of $3.9 billion and expenses of $3.7 billion.

Admissions and physicians

Hospital admissions are expected to increase 3.6 percent.

The Spectrum Health Medical Group is planning to add 104 physicians, for a total of 562. The hospital system is the largest employer in the region, with 19,200 employees.

Spectrum Health said Medicare medical costs per capita in West Michigan are about $9,000, compared to almost $16,000 in Dade County, Fla., and more than $11,000 in Suffolk County, Mass., and New York County in New York.

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