How Many of them Will Close?
The headlines in 2013 were dominated by several healthcare related stories, with the biggest being healthcare reform. The Patient Protection and Affordable Care Act (PPACA), commonly called the Affordable Care Act (ACA) or “Obamacare”, has made news all year due to the affect it will have on patients and insurance companies. It will ultimately have an affect on hospitals as well.
Another big story has been the deterioration of the financial health of hospitals across the country. While many are still holding on, 11 hospitals filed for bankruptcy in 2013. As you’ll see, filing for bankruptcy doesn’t necessarily mean that a hospital will be closing its doors. Here’s a look at the 11 hospital in alphabetical order:
1) Fairmont General Hospital
Fairmont General Hospital is a private, non-profit, community hospital founded in 1939. The hospital provides a wide variety of patient services and is accredited by the Joint Commission and the American College of Surgeons Commission on Cancer. Fairmont has a staff of over 700 physicians, nurses and other personnel. On September 3rd Fairmont General Hospital filed for Chapter 11 bankruptcy. Fairmont has been looking to partner with another hospital or health system for the last two years and although potential partners have not been named, Fairmont said filing for bankruptcy was a necessary move to make it more attractive to any potential partner.
2) Florence Hospital at Anthem
Florence Hospital at Anthem is a 36 bed, 96,000-square-foot hospital which offers a vast array of services including emergency, inpatient and intensive care. Digital X-ray, nuclear medicine, ultrasound and other imaging are available around the clock. The hospital also has a full-service laboratory, blood bank and inpatient pharmacy. The Florence Hospital employs approximately 100 people on its medical staff and approximately 200 other staff. The hospital filed for bankruptcy exactly one day short of their first anniversary.
3) Interfaith Medical Center
Interfaith Medical Center is a not-for-profit, 287 bed hospital with an ambulatory care network of 16 clinics serving Central Brooklyn. Of the 287 beds, 120 are allocated to mental health services, 20 for drug detoxification and 20 beds for rehabilitation services. Annually, Interfaith provides a total of over 200,000 outpatient clinic visits, over 50, 000 Emergency Department visits, and over 11, 000 discharges. Almost 15% of our outpatient services (over $10 million) are provided to uninsured individuals with no ability to pay for their care. The hospital has filed for bankruptcy, and the implications of the bankruptcy are many. Large parts of Brooklyn, especially Crown Heights and Bedford-Stuyvesant, will be without a local hospital. In excess of 1,500 people will lose their jobs, and are highly unlikely to be able to find equivalent positions in Brooklyn. The hospital in Bedford-Stuyvesant had planned to end ambulance services the day after Christmas, and close altogether on Jan. 7, but the state Department of Health is giving the hospital enough money to keep it open until at least March 7, an infusion of $8 million. For more, visit: Interfaith Medical Center Bankruptcy.
4) KidsPeace Psychiatric Hospital
KidsPeace is a 96-bed hospital is in Orefield, Pennsylvania. KidsPeace is dedicated to healing and addressing the unique mental and behavioral health care needs of kids and young adults experiencing severe crisis, including troubled and autistic children. With $240 million in debt, KidsPeace, the parent company, filed for bankruptcy on May 21. For years the company has been struggling with its finances and has laid off workers and missed debt payments. The company will attempt to use Chapter 11 bankruptcy to reduce its bond debt and to trim back pension obligations. The current bond debt is $51.3 million and KidsPeace is looking to reduce that to $24 million. CEO Isemann says that many other organizations have faced increased challenges. For example, the U.S. federal and state Medicaid program cut reimbursement rates. This program, the company’s biggest source of revenue, offers health insurance to poor children. For more, visit: KidsPeace Psychiatric Hospital Bankruptcy.
5) Lake Shore Health Care Center
Lake Shore Health Care Center is a general medical and surgical hospital in Irving, NY, with 220 beds. It is also accredited by the American Osteopathic Association. Survey data for the latest year available shows that 10,708 patients visited the hospital’s emergency room. The hospital had a total of 21,455 admissions. Its physicians performed 365 inpatient and 2,782 outpatient surgeries. There were 61,495 outpatient visits, and 10,708 emergency room visits. The hospital provides inpatient services for the elderly/disabled (skilled nursing care) and infection isolation rooms. The provided outpatient services are for breast cancer screening/mammograms, home health services, and substance-abuse programs. TLC Health Network, which operates Lake Shore Health Care Center, filed for Chapter 11bankruptcy Monday December 15th. Lake Shore has lost more than $9 million so far this year, and has lost $16. 7 million from operations from 2008 through 2012. The hospital’s filing estimates future revenues of $2 million per month and future expenses of $3. 4 million per month, leaving an annual deficit of $16. 8 million. While awaiting the deadline, the hospital is continuing to negotiate with potential buyers. Approximately 460 employees of the health care center were notified, and their last day of employment will be as early as January 16th. Additionally, the decision to close the facility leaves 60 long-term care patients in jeopardy. For more, visit: Lake Shore Hospital Bankruptcy.
6) Nye Regional Medical Center
Nye Regional Medical Center is a non-profit hospital in Tonopah, Nevada. It is a tiny 10-bed facility, which according to its website is 200 miles from the nearest major hospital and trauma center. Data from the University of Nevada, Las Vegas Center for Health Care Information Analysis, shows the medical facility generated nearly $11. 1 million in revenues in 2012 and $8. 3 million in revenues in 2011. The hospital was reported to have made a net income of $1. 6 million and $521,086 in those years respectively. The hospital reportedly filed for Chapter 11 bankruptcy and intends to close unless it can find additional sources of income. Obviously this would be a tremendous blow to the community surrounding the hospital as they will now have to travel 200 miles to the nearest hospital!
7) Pauls Valley General Hospital
Pauls Valley General Hospital is one of two hospitals in Garvin County, Oklahoma. It is a small 64 bed hospital that has been open since 1970. The hospital has about 200 employees, which makes it one of the largest employers in Garvin County and an important economic generator for the town. The Pauls Valley Hospital Authority filed for Chapter 9 bankruptcy protection in March. The authority estimated its total assets and liabilities between $1 million and $10 million, including more than $468,500 in state and federal taxes, according to the bankruptcy filing. St. Anthony Hospitals’ parent company SSM Health Care Oklahoma was in the process of negotiating to purchase Pauls Valley General as recently as October, but the deal has since fallen through.
8) Saint Francis Hospital and Health Center
Saint Francis Hospital and Health Center in the town of Poughkeepsie, New York, is about to turn 100 years old, however, it may not make it. St. Francis Hospital and Health Center is a general medical and surgical hospital with 322 beds. It is also accredited by the Commission on Accreditation of Rehabilitation Facilities (CARF). Last year 32,730 patients visited the hospital’s emergency room. The hospital had a total of 8,655 admissions. Its physicians performed 2,279 inpatient and 3,812 outpatient surgeries. More than 9,000 trauma victims are cared for annually at the St. Francis Level II Trauma center, making it the busiest Level II Trauma Center in New York. They have recently filed for Chapter 11 bankruptcy. The filing revealed Saint Francis owes more than $50 million and is still losing about $3 million per month. In a twist of irony, St. Francis rescued Highland Hospital from bankruptcy in July of 1985
9) Sound Shore Health System
Sound Shore Health System is a non-for-profit health system that operates two hospitals in New York, Sound Shore Medical Center and Mount Vernon Hospital. Mount Vernon Hospital is a community-based teaching hospital founded in 1891. Sound Shore Medical Center is based in southern Westchester County. Sound Shore is a 252-bed community-based teaching hospital Founded in 1892, offering primary, acute, emergency and long-term health care. It is a major teaching affiliate of the New York Medical College. Mount Vernon, a 196-bed facility, provides inpatient, critical care and ambulatory services. Sound Shore Health System filed for Chapter 11 bankruptcy on May 29, 2013. The bankruptcy filing is basically a reorganization for Sound Shore Health System. It will allow Montefiore Medical Center to take over assets while not being stuck with all of its debts. Both Sound Shore Medical Center and Mount Vernon Hospital have had years of bad finances, but were doing better more recently. Sound Shore had deficits running as high as $16 million in 2007. In 2010 it had a surplus of $12 million. Mount Vernon also had years of deficits but showed a profit of $5. 7 million in 2010. For more: Sound Shore Medical Center Bankruptcy.
10) Southeast Arizona Medical Center
Southeast Arizona Medical Center (SAMC) was established in 1910. It is a small hospital with 25 beds and services for general medical and surgical needs in Douglas, Arizona. SAMC filed for Chapter 11 bankruptcy on February 8. The hospital reports that there are no plans for layoffs or cutting hours. However, they will not fill any positions if they become available unless they are significant positions. Sierra Vista Regional Health Center (SVRHC) will continue to help SAMC during the next 90 days until a new company is chosen to operate the facility. SVRHC has loaned SAMC over $1 million. The new company that comes in to operate the hospital will have repay those funds back to SVRHC.
11) Westlake Regional Hospital
Westlake Regional Hospital the only hospital in Adair County, Kentucky opened its doors in 1980. Westlake has a busy emergency room, 74 beds and 250 employees. The facility filed for Chapter 9 bankruptcy in early August due to the hospital owing around $20 million. This is the first hospital ever in the state to file Chapter 9 bankruptcy. One of the creditors owed is Adair County, $1. 7 million to be exact. Taxpayers would like for that debt to be the number one priority, although many of them are concerned where they would head for emergency services if the hospital were to close.