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 | Apr-14-2008Owners of St. Francis Hospital in Blue Island vow to try to avert ...(topic overview) CONTENTS:
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St. Louis-based SSM has said it could no longer bear the heavy cost of keeping St. Francis open, despite the plan to open in Janesville. SSM said it tried three years ago to build a new hospital in the more affluent Chicago suburb of Orland Park as a way to mitigate the company's mounting losses on the Blue Island facility, which is projected to lose $20 million this year alone. It was turned down in its request by the Illinois Health Facilities Planning Board, which said Orland Park had excess capacity of hospital beds. [1] SSM Health Care, which has announced plans to close Blue Island's St. Francis Hospital, said Thursday it will build a new $140 million hospital in southern Wisconsin.[2] Janesville residents won't have to drive far to seek additional health care services in the near future, as Dean Health Systems and SSM Health Care of Wisconsin, the parent company of St. Mary's Hospital, announced Thursday plans to build a new $140 million hospital in southern Wisconsin.[3]
SSM's chief executive, Sister Mary Jean Ryan, described the timing of the announcement to build in Janesville as "difficult," particularly in the wake of the decision to close the Blue Island's St. Francis Hospital. "However, the Janesville hospital has been in the planning stages for years and capital for the project was approved by SSM Health Care in July of 2007," she said in an internal memo provided to the Tribune.[3] The timing of the announcement, with the new hospital located in a more prosperous region, provided a new opportunity for some to criticize SSM Health Care's decision to close St. Francis in Blue Island. The questions focused on the role of non-profit hospitals, and whether they properly balance their missions to serve the poor and uninsured against the need to generate revenue by opening hospitals in areas with more insured patients.[1] The Chicago Tribune reported that SSM Health Care announced a week ago that it would close St. Francis Hospital in Blue Island, Ill., because it was losing money due to a flood of uninsured patients.[4]
Platt said the decision to close was "not made lightly," and that SSM made every effort to find a buyer or turn over the hospital, for free to another faith-based health care system. SSM has notified the Illinois Department of Public Health of its plans to close the hospital, but SSM also needs approval from the Illinois Health Facilities Planning Board. The company this week had expected to file a letter of intent with the planning board but has delayed that while it talks with Transition and other potential buyers. SSM said since it announced plans to close St. Francis, it's been approached by other parties interested in buying the hospital but hasn't received a firm offer.[5] "I am committed to working aggressively with Mayor Peloquin and our state elected legislative leaders to keep St. Francis Hospital open. "I am certainly urging the Illinois Health Facilities Planning Board to look critically and deliberately at the request of SSM Health Care, one of the largest and economically viable Catholic health care systems in this nation, to nail shut the doors of this 410-bed medical institution." Rush said that while SSM believes it has exhausted all viable options, "I nonetheless, believe that SSM should re-examine its commitment to find a purchaser for St. Francis.[6]
The closing is a great loss to the community," said Kelly Cusack, spokesperson for Little Company of Mary Hospital, at 2800 W. 95th St. in Evergreen Park. "These patients will now have to rely on other area hospitals," said Cusack. "The good news is, Little Company of Mary has been part of this community for almost 80 years, and we open our arms to patients from St. Francis. We look forward to serving them." Her hospital offers a free community referral service, called Physician Match, that people with doctors affiliated with St. Francis but not Little Company can use to find new doctors and get information on insurance. That number is (708) 423-3070. She said Little Company is also working on a "new vision" that include building a parking tower as part of a three-phase campus transportation project due to be completed in 2013. A spokeswoman for Advocate Health Care, which operates Christ Medical Center in Oak Lawn, as well as South Suburban Hospital in Hazel Crest and Trinity Hospital in Chicago, said that organization is unsure how the closing will affect them.[6] SSM said the new 50-bed hospital in Janesville "has been in the planning stages for years," and that company officials gave the green light last year to fund the project. SSM is seeking state approval to close the 410-bed St. Francis, saying it's losing tens of millions of dollars caring for Medicaid patients as well as patients who lack health insurance.[2] '''The timing of the announcement, with the new hospital located in a more prosperous region, provided a new opportunity for some to criticize SSM Health Care'''s decision to close St. Francis,''' according to the Chicago Tribune. St. Francis is projected to lose $20 million this year.[4]
SSM Health Care would sell the hospital to another firm if financing works out, said Dixie Leigh Platt, senior vice president of mission and external relations. Plans to close the 410-bed hospital are still in the works, she said. Platt appeared Friday with state Rep. Bob Rita (D-Blue Island), Mayor Donald Peloquin and other elected officials at a news conference, the first opportunity hospital employees had to voice their concerns.[7] Dixie Platt, a senior vice president with St. Louis-based SSM, faced an angry group of hospital employees and city residents during a news conference across the street from the hospital at St. Benedict Church. SSM announced April 2 it would close the 410-bed hospital, and the Catholic health care system has been accused of abandoning its commitment to care for those least able to afford health care. "Have the sisters (Franciscan Sisters of Mary) suddenly forgotten what their mission is all about?" Dr. Martin Joffe asked Platt.[5]
SSM Health Care, which owns the 103-year-old Blue Island hospital, announced April 2 that it has to close the Catholic hospital at 12935 S. Gregory Ave. because it is losing money and a buyer could not be found.[6] An executive with SSM Health Care told hospital workers Friday it expects to know in about a week whether Transition Healthcare has nailed down financing to close the deal. Transition's previous bid to buy the Blue Island hospital fell apart when its financial partner backed out.[5]
"St. Francis has been a dependable health care resource for the people of Blue Island and the surrounding communities, and its closing would certainly be a loss to many in the area. "The impact of this announcement on Palos Community Hospital is unclear at this time.[6] Jim Sibley, a spokesman for Palos Community Hospital in Palos Heights, expressed similar sentiments. "Palos Community Hospital is disappointed to hear of the announced plan to close St. Francis Hospital in Blue Island," he said.[6] Though they could offer no specifics, the owners of St. Francis Hospital in Blue Island said Friday that they will work with local leaders on a last-minute attempt to keep the facility open.[7] Blue Island residents, businesses and elected officials are fighting to keep St. Francis open and are counting on a potential offer from Transition Healthcare, which is seeking to buy the hospital.[2]
Kevin Joyce (D-35th) and Robert Rita (D-28th) and Blue Island Mayor Donald Peloquin, got together Tuesday and released a statement urging a buyer to come forward and keep the hospital open.[6]
SSM wanted to build a hospital on the 66-acre site in Orland Park in hopes it would cater primarily to people with health coverage and that revenues from the new hospital would help offset losses in Blue Island.[5] Rush wasn't buying the argument. "SSM argues that they must close the doors at St. Francis because they could not build a new hospital in Orland Park that would have helped to offset the financial loss they are incurring at St. Francis," Rush said. "It is apparent therefore that they would not be building this new hospital unless it's to be a moneymaker.[1]
Rush suggested that if an Orlando Park hospital could have staved off the St. Francis closing, then a new hospital in Janesville could serve the same purpose.[4]
St. Francis completed a $34 million expansion in 2003. Rep. Bobby Rush, D-Ill., who has worked to keep St. Francis open, reacted to the Janesville news by saying SSM should have its tax-exempt status revoked, the Tribune reported.[4] The hospital will feature private rooms and a state-of-the-art emergency department, SSM said, adding that it is also planning a new $200 million hospital in Missouri's state capital, Jefferson City, which is scheduled to open in 2012.[3]
'''However, the Janesville hospital has been in the planning stages for years, and capital for the project was approved by SSM Health Care in July of 2007,''' Ryan'''s memo states, according to the Tribune.[4] According to SSM, half the patients who use the St. Francis emergency room have no health care insurance or are on Medicaid, which doesn't fully reimburse the hospital. SSM officials reported that when a buyer could not be found, they offered to assume the long-term debt and give the site to another hospital, but no one accepted. Local hospital officials are not sure yet what the impact will be on their institutions if the coalition's efforts fail and St. Francis does close, but they agree that the community will feel the loss.[6] St. Francis is a 401-bed hospital owned by the St. Louis-based SSM, described on the St. Francis Web site as '''one of the nation'''s largest Catholic health care systems.'''[4]
"Throughout my own health-related experiences of the past month, I have been blessed to receive outstanding medical care from a tremendous group of dedicated health care professionals. "It is a service that every individual should be entitled to receive and certainly one that St. Francis Hospital and Health Center must continue to provide," added Rush, who had successful surgery to remove a cancerous tumor from his salivary gland in March.[6]
A week after announcing plans to close a south suburban hospital because its treatment of uninsured patients was a financial drain, the non-profit owner of St. Francis Hospital & Health Center turned its attention northward, saying it would build a 50-bed hospital in Janesville, Wis.[1] The company said ongoing losses because of higher numbers of Medicaid and uninsured patients being treated at the hospital prompted the decision to close St. Francis. "We can't make them stay here," said state Rep. Bob Rita (D-Blue Island), who called together the news conference.[5] The health care company's Dixie Platt says ongoing losses due to higher numbers of Medicaid and uninsured patients at the hospital prompted the decision to close it.[8] The health care company that runs the hospital says it has to close St. Francis. "I'm very, very sad about this entire situation.[8]
Local lawmakers and SSM Health Care are exhausting all efforts to keep St. Francis open.[8] In partnership with SSM Health Care of Wisconsin and St. Mary's, we have been listening to, working with and investing in communities in Wisconsin for nearly 100 years.[3]
The Catholic health care system acknowledged the timing of the announcement was "difficult," coming on the heels of the April 2 announcement that it would shutter St. Francis.[2]
Janesville also is becoming a bedroom community to Madison, a college town. The planned closing of St. Francis already had escalated a debate about whether non-profit hospitals should be required to provide a specific amount of care to the uninsured in order for them to keep their tax-exempt status.[1] St. Benedict Church, across from the hospital, was packed with hospital staff and community members outraged at the possible closing. "It's going to be difficult for the community. The whole area is surviving on this hospital," said the hospital's Dr. Refat Baridi. "It still shocks me. It's very sad. It's a lost feeling what the future holds" said Susan Oroszo Camino, also of St. Francis.[8]
SSM executives had expressed concern that St. Francis staff might leave to take jobs elsewhere before the hospital closing, forcing cuts in services.[2] Rush, whose district includes many neighborhoods served by St. Francis, said in a statement that the hospital has "been a leader in the prevention and treatment of heart disease. Many of these services have been provided despite the significant financial challenges encountered in serving a population that is economically diverse." Therefore, he said the proposed closing "as a result of apparent financial problems was both stunning and unsettling." "Certainly, this closing will have a devastating impact on the overall delivery of health services to the south and south suburban region, in addition to creating a tremendous economic implosion through the loss of nearly 1,500 jobs.[6]
Transition says it is trying to secure funding for the deal. An earlier purchase attempt by Transition failed when its financial backer pulled out. Doctors at St. Francis said they will continue to see patients there and are urging hospital employees not to jump ship. In a memo sent to hospital staff Wednesday, several doctors committed their "full and unwavering support" to St. Francis and said they "will actively continue using St. Francis for our patients until the doors are actually closed."[2] The closing date has not been set, because a closing application must be filed and approved by the state, a process that could take months. Holy Cross Hospital executives were unavailable to comment this week on what effect the impending closure may have on the hospital at 2701 W. 68th St,, but spokesman Ted Lally said the employees are all talking about it with sadness. "They are just saying how sad it is to lose a hospital like that, and and all the patients and employees it will affect," said Lally, whose hospital has begun expanding its emergency room.[6] "We got doctors, nurses, employees, residents here have all banded together, working together for the solution to keep the hospital open," said Robert Rita, State Rep. 28th District.[8]
SSM, which operates the 108-year-old hospital, announced last week that it planned to close the facility due to financial concerns. The owners of the hospital say they will hold off seeking state approval to close until all attempts to sell it are exhausted.[8] We are doing that," said Platt. Platt acknowledged that the plan to close the hospital last week was difficult, considering they plan on building other hospitals including one in Wisconsin. "For them to be building hospitals in Jefferson City and Mt. Vernon and Janesville and let this one go, it just boggles the mind," said Platt.[8] In Wisconsin, St. Louis-based SSM operates hospitals in Baraboo and a large facility in Madison, which is within an hour's drive of Janesville.[1] The Janesville hospital, due to open in 2010, would feature private rooms and a state-of-the-art emergency department, SSM said. It would be 40 miles south of Madison, where SSM also has a hospital.[2] CHICAGO - The owner of Madison St. Mary'''s Hospital is under fire in the south Chicago suburbs for closing a hospital there while planning to open one in Janesville.[4]

The health facilities planning board rejected the hospital plan in 2005. Joffe said he thought the property, at 171st Street and LaGrange Road, would "conservatively" fetch $40 million. [5] The Illinois Health Facilities Planning Board rejected the proposal, saying Orland Park had excess hospital beds.[4]
Joffe, who's been at St. Francis for 25 years, asked whether land SSM owns in Orland Park could be sold to continue funding St. Francis.[5]

SSM's chief executive acknowledged that the timing of the announcement to build in Janesville was "difficult." Janesville is a starkly different place from the struggling community of Blue Island, an area with a soaring number of people who cannot pay their medical bills. [1] ' A prayer vigil sponsored by the Blue Island Area Ministers Association is scheduled for noon today at the hospital, 12935 S. Gregory St.[5] "In the last week, I have talked to three or four different financial groups that are looking at financing a purchase of the hospital," said Blue Island Mayor Don Peloquin.[8]

Selling the property would be a temporary Band-Aid to stanch the red ink St. Francis is hemorrhaging and "doesn't create a permanent solution" to the hospital's financial trouble, said Thompson, who was at the news conference. [5] Bobby Rush (D-1st) is leading a coalition of elected officials that has vowed to find a way to keep St. Francis Hospital open.[6] "The next step will be meeting with St. Francis officials," said Rush's aide, Toure Muhammad, noting the closure would hurt restaurants and many other businesses in the area that serve the hospital in one way or another.[6]

The 140-bed hospital with 1,400 employees reportedly lost $40 million since 2002 and is projected to lose $20 million in 2008. [6] Several times during the news conference, employees criticized SSM for placing profit over the health of the needy.[7] An SSM spokesman, Chris Sutton, said the company doesn't have a timetable for when it will file paperwork with the planning board. "They (SSM) are not on the fast track to closing," Rita said at the news conference.[5]

In an internal memo obtained by the Tribune, SSM'''s chief executive, Sister Mary Jean Ryan, described the timing of the Janesville announcement as '''difficult.''' [4] A large, 500-physician medical group in Madison known as Dean Health System is also involved in the Janesville expansion, agreeing to spend $55 million on a physician office complex as part of the project.[1] ' ' Janesville residents are asking for -- and deserve -- more health care options closer to home.[3]

Gen. Lisa Madigan is pushing for ways to require hospitals to provide a specific percentage of revenue as charity care, or information on the discounts hospitals provide for some patients. [1] Federal lawmakers also are looking at the issue. A proposal by Sen. Charles Grassley (R- Iowa ) would require that non-profit hospitals spend at least 5 percent of their budgets on charity care.[1] Non-profit hospitals do not have to pay federal income tax and can issue tax-exempt bonds for capital projects. They also are exempt from certain state property taxes.[1]
The new 50-bed hospital will be located near Interstate 90 and Highway 11 and it is expected to open in 2010 and employ 350 people.[3] "We're just going to wait and see what happens," said Kelly Jo Golson of Advocate. She said the closing of any hospital is not good for a community, but "It is too soon to know what implications this will have for our hospitals."[6]
SOURCES
1. St. Francis' owner draws renewed fire -- chicagotribune.com 2. Blue Island's loss is Wisconsin's gain :: CHICAGO SUN-TIMES :: Health News 3. Plans for New $140 Million Hospital Announced in Janesville 4. GazetteXtra 5. St. Francis buying time :: The SouthtownStar :: News 6. Southwest News-Herald City: Coalition Fights for St. Francis 7. Owners of St. Francis Hospital in Blue Island vow to try to avert closing -- chicagotribune.com 8. abc7chicago.com: Closing hospital's owner building new ones 4/12/08

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