Scotland Memorial Health Care System was upbeat about its accomplishments in 2008 while addressing the budget realities of 2009 at its annual meeting on Thursday.

"We have lots of opportunity and only one challenge," Greg Wood, president and CEO of the health care system, said.

That challenge - a sagging economy.

Bad debt and charity write-offs for the hospital has increased, which has affected its revenues.

"We know we are going to have to deal with the diminished resources coming to the hospital" Wood said. "We will plan accordingly. We know that means we've got to grow a little more slowly, maybe consolidate some services, but we'll make sure we give the community the services it needs."

"We will continue to make sure we stay focused on providing each and every patient with the finest care we can," Wood said.

Responding to concerns in the community, Wood said the health care system would remain independent.

"Scotland Health Care System at this time has no plans of selling itself to any other health care system," Wood said. He added that they will continue to partner with other systems to increase quality and efficiency.

Wood assured those present that the hospital would continue to provide quality care.

"We will not use the economy as an excuse for not doing what we need to do," Wood said.

According to Terry Garner, vice chairman of the board, bad debt and charity write-offs decreased the operating margin to just 0.5 percent. He was happy to report, however, that this put the health care system in the black, which was better than many other hospitals.

Garner did report

"Just like all of us who are seeing the value of our savings go down, the hospital faces similar circumstances," Garner said. "However, we plan to obtain capital financing in the next few months in order to expand and upgrade our clinical equipment and facilities."

Despite feeling the slow economy, the hospital was quite proud of some of its accomplishments.

"We've had some very nice accomplishments this year," Rush said. He expressed excitement about the new members of the staff.

According to Rush, the hospital added five new physicians this year. He also announced that the hospital will have three new hospitalists coming this year, the first in February.

"We have done very well in reportable data," Rush said. "We are top 10 in the state in surgical performance in the state."

"Despite our challenges, we have much to be proud of," Jim Mason, Chairman of the hospital, said. He listed a slew of improvements and new services at the hospital, including the new linear accelerator, the open bore MRI and the Wound Healing Center.

"Our most important role is to provide quality care," Mason said. "We are proud of how we do that."

"Our success as a system would be vastly diminished without the tremendous support of our foundation," Mason added.

People at the meeting gave the health care system high marks.

"I am huge supporter of the hospital," Guy McCook said. "It's one of the shining stars of the community."

McCook pointed to the hospital as a leading economic institution in the community.

"It's one of the few growth industries in the community," McCook said. "I think they are the largest employer in the community now, except for maybe the school system."

Bill Miller gave the hospital a 100 percent rating.

His wife, Shirley, was equally pleased with the system.

"When we were there, we were treated well," Shirley Miller said. She added that they had been blessed not to need to go to the hospital very often.