Eric Dickson, MD, president and CEO of Worcester, Mass.-based UMass Memorial Health, is predicting that, without significant change, more hospitals in the state will close, The Boston Globe reported Oct. 25.
The prediction comes amid the closures of Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer, both of which shut down on Aug. 31, resulting in layoffs of 753 and 490 employees, respectively. These hospitals were part of Dallas-based Steward Health Care, which filed for Chapter 11 bankruptcy in May. Steward's bankruptcy has led to some hospitals closing and others transferring to new ownership through restructuring.
On Oct. 23, Dr. Dickson cautioned a small group of Boston business leaders that nonprofit hospitals in Massachusetts could face similar problems without systemic changes to the state’s Medicaid reimbursement structure, according to the Globe. He argued that the current system permits annual cost increases across health systems, which disproportionately raise costs at higher-cost hospitals while underfunding lower-cost facilities.
"We're going to see more closures," Dr. Dickson said, according to the Globe, expressing his preference for reforming the Medicaid fee schedule over piecemeal funding solutions. "The question is, are we going to try to fix the system or are we going to do a bunch of one-offs? ... Instead of changing the Medicaid fee schedule, we're doing one-offs. Nobody wants to be the last in line for the one-off. Then you run out of money."
UMass Memorial Health is the largest health system in central Massachusetts, with five hospitals and behavioral health services, according to its website.