Bethesda Hospital in St. Paul will shrink by half
The reduction from 89 to 50 beds, announced to staff Friday, will have ripple effects across the state because Bethesda is one of only two federally designated long-term care hospitals (LTCHs) in
Bethesda will now provide that extended care to patients transferred from other hospitals in the Fairview system, such as the
"We're going to size it more appropriately to serve our patients," he said, "because we simply can't ... run an LTCH that would serve needs beyond those of our own system."
Cuts at Bethesda were proposed earlier this fall in "war room" sessions by Fairview leaders and approved by Fairview's board Thursday, in response to a projected budget deficit of as much as
The board did not take action on another leadership proposal, the closure of
The Bethesda move is the latest in a series of hospital consolidations in
Bethesda has existed as a hospital in some form in
After Medicare leaders decided in 1982 to exempt long-term care hospitals from planned federal rate cuts, the number of such hospitals increased tenfold to around 400. Bethesda was converted in 1989 by its parent organization, HealthEast, which merged with Fairview in 2017.
Typical LTCH patients include those who are still on ventilators but have stabilized while in intensive care at general hospitals, or who are slowly recovering after hospital treatment of strokes or traumatic brain injuries.
Long-term care hospitals have been controversial; some analysts believe they waste billions in medical spending and that many patients could do just as well if they were transferred directly from general hospitals to skilled nursing homes.
Prof.
"I think that, for the majority of patients who are treated in LTCHs, a (skilled nursing facility) would provide similar quality of care at one third of the cost," Mahoney said in an interview. "It's the most compelling evidence of waste I've seen in the
Hereford said he couldn't challenge those economic projections, but he defended Bethesda as providing a high level of hospital care for patients that nursing homes can't afford to match, especially given their reimbursement rates in
"Its an important part of our continuity of care," he said.
Even so, a reduction in operations was necessary at Bethesda, as payment levels for long-term hospital care are declining and insurance reimbursement is worsening, Hereford said.
The growth of bundled payments and risk-based insurance contracts have made health care providers more responsible for the cost of patient care and more wary of unnecessary expenditures.
Hospital data from the
Preventing other hospitals from sending patients to Bethesda is a competitive move in a community in which hospitals systems have cooperated on everything from surgical safety protocols to public relations during nurse contract negotiations. Hereford said he doesn't expect the move to jeopardize cooperation in other areas.
Leaders had sought to diversify Bethesda in recent years, including the addition of a clinic for the detection and management of concussions. Those outpatient services aren't changing under Friday's announced reduction, Hereford said.
In addition to the Bethesda decision, Fairview also is reducing its staff by about 500 workers as part of its broader cost-trimming plan. It notified 340 employees Friday that they will lose their jobs, though some will be retained through retraining and transfers.
Fairview also is closing a sleep clinic in
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