16 Chicago Tribune | Section 1 | Wednesday, April 15, 2015 FOCUS HEALTH CARE WHEN HOSPITALS HIT THE ROAD Poor communities are feeling deserted as more facilities move to wealthier areas By Phil Galewitz | BELLEVILLE, Ill. — Nearly as old as the railroad that slices through this southern Illinois city just east of the Mississippi River, St. Elizabeth’s Hospital has been a downtown bedrock since 1875. Started by three nuns from a Franciscan order in Germany, the Catholic hospital still seeks “to embody Christ’s healing love” to the sick, the aged and the poor, according to its mission statement. It is so tied to the city that when the local economy slumped in 2009, the Like a small but growing number of hospitals around the country, St. Elizabeth’s is taking a radical step: Hospital officials plan to close the 303-bed hospital and move elsewhere. They are seeking state approval to build a $300 million facility 7 miles northeast, in O’Fallon, a wealthier city that is one of the fastest-growing communities in the St. Louis region — with new subdivisions, proximity to a regional mall and quick access to Interstate 64. Describing plans to leave behind some services, such as a walk-in clinic, St. Elizabeth’s Chief Executive Officer Maryann Reese insists the hospital is not abandoning the city or the poor. But that’s exactly how many residents, community leaders and clergy see it. If St. Elizabeth’s leaves downtown, they say, it will limit care for many poorer residents, especially those dependent on public transportation, and lead to overcrowding at the city’s one other hospital, which is downsizing. Many also worry about the loss of jobs and of the daily visitors to the hospital who patronize local shops and eateries. “This ... only serves the narrow interest of St. Elizabeth’s profit picture,” Belleville police Capt. John Moody II wrote in a scathing letter about the plan to a state review board. “There is too much at stake and the loss will be catastrophic, and I fear unrecoverable.” Hospitals have moved to follow population migrations before, but such relocations are becoming more common. That’s partly due to the aging of facilities built in the 1950s and 1960s and partly to the need to attract better-paying patients. A 2012 Health Affairs study found that hospitals in 12 markets used geographic expansion strategies, including building new hospitals or adding free-standing emergency departments, to “capture” well-insured patients. “Where you choose to place new facilities almost always involves moving to an area where there is a substantial privately insured population,” said Paul Ginsburg, chairman of medicine and public policy at the University of Southern California. Hospital relocations are planned or underway in South and Central Florida, eastern Tennessee, central Georgia, Birmingham, Ala., and northeast Ohio. Some have stirred controversy, as in Belleville: ■ Just west of Fort Lauderdale, Fla., HCA, a forprofit hospital chain, plans to close Plantation General Hospital and open a new hospital 7 miles away in wealthier Davie, near a medical school. “It’s all about greed,” said Plantation Mayor Diane Bendekovic. When HCA offered to keep some outpatient services in town, she told them: “Don’t throw Plantation any crumbs.” ■ Tennova Healthcare is moving its flagship Physicians Regional Medical Center near downtown Knoxville, Tenn., closer to higher-income suburbs 8 miles west. “Clearly ... they want to be near the better zip codes,” said Tony Spezia, CEO of Covenant Health, owner of Fort Sanders Regional Medical Center, which will become the last general hospital downtown. Tennova is owned by forprofit Community Health Systems. Kaiser Health News nonprofit St. Elizabeth’s gave $20 to every employee to spend on Main Street, sending hundreds of shoppers out to the mostly mom and pop-owned stores. But St. E’s, as locals call it, now faces its own financial troubles, partly due to the costs of maintaining an obsolete facility and also to the growing numbers of low-income and uninsured patients from Belleville and neighboring East St. Louis, one of the poorest cities in the Midwest. DERIK HOLTMANN/BELLEVILLE NEWS-DEMOCRAT Like a small but growing number of hospitals, St. Elizabeth’s in Belleville, Ill., is planning to move to a wealthier location to ease financial troubles. ZIA NIZAMI/BELLEVILLE NEWS-DEMOCRAT 2014 Describing plans to leave behind some services, such as a walk-in clinic, St. Elizabeth’s CEO Maryann Reese insists the hospital is not abandoning the city or the poor. ■ Just outside Cleveland, Lakewood Hospital in Lakewood, Ohio, which is managed by the Cleveland Clinic, is slated to close in 2016, and patients will be directed to the Clinic’s newer Fairview Hospital 3 miles away or to another facility being built in Avon, 13 miles away. Fairview and Avon are in higher-income areas. Lakewood officials say losing the hospital and its 1,000 employees could have a prolonged impact. Hospital officials point to their aging, landlocked facilities and argue it is cheaper to build rather than renovate. What they don’t say publicly is how geography is often economic destiny for a hospital, especially at a time of increasing financial pressure as a result of Medicare funding cuts, including penalties that may result from new pay-for-performance measures in the Affordable Care Act. By moving to wealthier areas, hospitals can reduce the percent of uninsured and lower-paying Medicaid patients, while increasing the privately insured — what hospitals refer to as attracting better “payer mix.” That’s also why they locate outpatient centers and medical offices in affluent suburbs. But relocations DERIK HOLTMANN/BELLEVILLE NEWS-DEMOCRAT 2014 Belleville Mayor Mark Eckert, right, believes St. Elizabeth’s officials “are definitely running from the poor.” often spark anger from those left behind, who worry about loss of jobs and of access to care. When the hospitals are nonprofits, like St. Elizabeth’s, questions loom larger because they are ex- empted from taxes in exchange for providing benefits to the community. “Hospitals were established in inner cities where the greatest needs were and now, essentially, that charity obligation has gone by the wayside as they are looking at their bottom line,” said Gerard Anderson, director of the Center for Hospital Finance and Management at the Johns Hopkins Bloomberg School of Public Health. Even nonprofit hospitals want to be near wealthier residents. “You move to where the money is,” he said. That doesn’t sit well with Belleville Mayor Mark Eckert, who was born at the hospital, drove an ambulance there when he was a teenager and now lives three blocks away. He fears the move will devastate the downtown economy and make it more difficult for some people to get care. “They are definitely running from the poor,” he said. St. Elizabeth’s officials deny that, noting that only a quarter of their patients come from Belleville and the new site will be closer to the majority who live in other communities, including eight of the 10 poorest zip codes. “Being more centrally located will also make care more accessible for everyone, regardless of income,” the hospital said in a statement. Rival Memorial Hospital, located a few miles from downtown Belleville, challenges those assertions, saying the plans don’t consider the impact on people who depend on public transportation. Memorial, though, is also targeting the more affluent population east of the city — building a second, 94-bed hospital in Shiloh, also just off the interstate and a five-minute drive from the proposed site for St. Elizabeth’s. State officials approved that facility in 2011 over the objection of St. Elizabeth’s, which contended there was no need for it. Today, most of St. Elizabeth’s operates out of a 60-year-old building that they say is difficult for many people to get to because of one-way roads. In addition, patient rooms are too small, and the waiting area for the emergency room is cramped. Though the hospital considered locations in Belleville, it settled on 114 acres of farmland it bought in O’Fallon in 2011 as a site to build a facility with 144 beds. St. Elizabeth’s lost $10.5 million on $148 million in revenue in 2013, according to its latest audited financial statement. That same year, Springfield-based Hospital Sisters Health System, which owns St. Elizabeth’s and 13 other hospitals in Illinois and Wisconsin, made $168 million on nearly $2 billion in revenue. “Where you choose to place new facilities almost always involves moving to an area where there is a substantial privately insured population.” — Paul Ginsburg, chairman of medicine and public policy at the University of Southern California None of these arguments have convinced Monsignor John Myler, rector of St. Peter’s Cathedral, across from the hospital. “It is contrary to Francis to ask those in need to travel to him,” he wrote in opposition to the plan. “Rather Franciscans are — and have been for centuries — right among the people, not in a well-to-do place asking the people instead to come to them.” A state commission is expected to hold a hearing and a vote on the proposed move April 21. Kaiser Health News is an editorially independent program of the Kaiser Family Foundation.
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