A merger resulted in two nearby hospitals (and former competitors) within the same system. It had been apparent that sustaining two community hospitals within such close proximity was not possible. Both hospitals ran at approximately 60% staffed capacity, and inpatient volume is anticipated to gradually decrease. That volume would not produce adequate returns to sustain two facilities with aging physical plants and infrastructure over the long term.
FreemanWhite’s master plan focused on key service lines: emergency care, inpatient beds, behavioral health, and outpatient services. Priorities for the study included reducing duplicate services, managing operating costs, and relocating outpatient services and/or non-clinical functions out of the acute hospital setting.
Our master plan recommendation calls for a single inpatient facility and a separate, dedicated ambulatory facility. The volume and pro forma analysis indicates this solution will produce a long-term, sustainable acute care presence in the community. While this solution would provide quality care, it is not without challenges. The primary issue is the requirement for significant capital investment. To address this problem and achieve the long-term solution, FreemanWhite phased the implementation over an extended period of time.