Editor’s note: The following news has been compiled by Major Accounts Exchange (The MAX), health care’s leading provider of realworld intelligence for the supply chain. The MAX serves as a Supply Chain “Community” where senior-level executives can easily Find, Digest, and Act on vital business and market intelligence. For the latest news impacting the supply chains of over 1,200 IDNs and all the GPOs, visit www.uslifeline.com.
Washington D.C.: VA to make crucial change to Veterans Choice Program eligibility
The U.S. Department of Veterans Affairs (VA) (Washington, DC) is poised to make a crucial change in its Veterans Choice Program that will allow veterans to receive care in their communities rather than travel to a VA facility or wait an extended period of time for an appointment. Originally, eligibility was based on distance to the nearest VA facility using “as the crow flies” distance on a map instead of “driving distance.” The policy change to the “driving distance” wording will be made through regulatory action in the coming weeks and is expected to double the number of veterans who can use the program. The Veterans Choice Program was authorized by the Veterans Access, Choice, and Accountability Act of 2014 (VACAA).
New Jersey: Three NJ hospitals may switch to outpatient only
Due to an increased demand for outpatient services instead of inpatient hospital services, a state-ordered report recommended dropping inpatient services at three of the five Newark, New Jersey hospitals and turning them into ambulatory care centers. The three hospitals are East Orange General Hospital (East Orange, NJ); Newark Beth Israel Medical Center (Newark, NJ), owned by Barnabas Health (West Orange, NJ); and Saint Michael’s Medical Center (Newark, NJ), owned by Catholic Health System (Buffalo, NY). The report has four consolidation recommendations:
- Combine all pediatric and cardiovascular surgery services in Newark Beth Israel by 2017.
- Expand the role of Broadway House for Continuing Care (Newark, NJ) in providing post-acute care to a broader population of patients by 2016.
- Transform East Orange and Saint Michael’s into state-of-the-art ambulatory care facilities by late 2017.
- Expand University Hospital (Newark, NJ), owned by University Hospital (System) (Newark, NJ), and consolidate Newark Beth Israel’s inpatient services into it by no earlier than 2019.
Ohio: Mount Carmel Health to invest $700M on multiple hospital projects
Mount Carmel Health (Columbus, OH) is investing more than $700 million in its people-centered care strategy. The investment includes major projects at three of its campuses. Mount Carmel East Hospital (Columbus, OH) will begin a $310 million project in spring 2015 to be completed in phases through 2019. The project includes the construction of a new five-story patient care tower with a new surgical suite and 128 new all-private, acuity adaptable patient rooms, as well as the complete renovation of the original 1969 bed tower to provide 112 all-private patient rooms. Mount Carmel Grove City (Grove City, OH) will spend $355 million to expand the facility to a full-service hospital by 2018. The project includes an inpatient hospital, which will feature 210 private rooms, seven floors of clinical service, and a medical office building. Mount Carmel West Hospital (Columbus, OH) will become a health and educational campus that will focus on primary care, urgent and emergent care, and include an ED.
Texas: Baylor Scott & White Health plans JV with Tenet Healthcare Corp
Baylor Scott & White Health (Dallas, TX) and Tenet Healthcare Corporation (Dallas, TX) are pursuing a deal allowing both companies to jointly operate five north Texas hospitals. Baylor Scott & White would become the majority owner of four Tenet-operated facilities: Centennial Medical Center (Frisco, TX), Doctors Hospital at White Rock Lake (Dallas, TX), Lake Pointe Medical Center (Rowlett, TX), and Texas Regional Medical Center (Sunnyvale, TX). Tenet would assume a minority ownership in Baylor Medical Center Garland (Garland, TX). Under the agreement, the hospitals will have a joint governing board but maintain their existing leadership teams. Tenet would also continue to oversee operations at its four hospitals, but will incorporate Baylor Scott & White’s charity care and community benefit policies. A closing date for the deal was not released.
Arizona: Banner Health announces leadership changes
Banner Health (Phoenix, AZ) announced several leadership changes at its Arizona hospitals. Todd Werner, former CEO of Banner Gateway Medical Center (Gilbert, AZ), became president of Banner Health’s East Region. Replacing him is Banner Gateway’s former CNO, Lamont Yoder. In addition, Laura Robertson moved from CEO of Banner Baywood Medical Center (Mesa, AZ) and Banner Heart Hospital (Mesa, AZ) to CEO of Banner Desert Medical Center, replacing the interim CEO there. Julie Nunley, CEO of Banner Ironwood Medical Center (San Tan Valley, AZ) and Banner Goldfield Medical Center (Apache Junction, AZ) will take over the leadership role at Banner Baywood and Banner Heart. In turn, Banner Ironwood and Goldfield CFO Tracy French will become interim CFO of both facilities.