Memorial Hospital Submits Application for Closure with RI Department of Health
Friday, November 03, 2017
The filing advises the Department of Health that Memorial plans to end operations as a licensed inpatient hospital and requests the approval of the Director for the elimination of the Emergency Department and certain other services. The closure comes just weeks after Care New England (CNE) tried to sell Memorial to Prime Healthcare, but that deal fell through. Prime this week was fined $1 million by the RI Department of Health in an unrelated issue.
“Today’s submission to the Department of Health represents a required and critically important step in the process Care New England carefully outlined recently. While we move forward with this difficult, yet necessary decision, we do so with compassion for those affected and the utmost respect for the legacy of care and community that Memorial has stood for throughout its history, while striving to ensure access to care throughout the service area,” said James E. Fanale, MD, EVP, chief operating officer and chief clinical officer.
Following the closure of the hospital, CNE intends to provide certain community-based primary and specialty care services in Pawtucket. But, CNE has not defined those services. CNE is at the breaking point financially and has lost nearly $120 million in the past two years. CNE has entered into an agreement with Partners HeathCare in Boston to sell the remaining hospitals and other assets to the Boston-based healthcare group.
According to the application, “At 9.3 percent occupancy, Memorial’s daily census has been significantly below capacity and below what is required to be financially viable. Due to service readiness, staffing, and operational requirements to meet licensure conditions, Memorial loses approximately $2 million per month. Given such under-utilization and unsustainable chronic financial losses, Memorial cannot continue to adequately staff and deliver patient care services in a clinically safe and financially viable manner and intends to cease all operations as soon as possible.”
The application further addresses employee support services during this transition to include, “… upcoming job fairs to be scheduled, and similar outplacement efforts. Memorial and CNE look forward to the continued assistance of, and plan to collaborate with, state and local leaders and other area medical facilities to find jobs for employees in non-CNE facilities if suitable positions are not available within CNE. CNE appreciates the current and ongoing efforts of Gov. Raimondo and other community leaders to secure commitments from other health system leaders to assist Memorial Hospital employees to find suitable employment following the closure of Memorial.”
Memorial’s Financial Issues
As was stated in Memorial’s plan to close was first announced, the reason for the changes include the chronic financial losses being incurred at Memorial, continuing a nearly 10-year slide, resulting in an operating loss in the past fiscal year of $23 million.
SNE recorded a $68 million loss from operations in the fiscal year 2016 and is projected to show a $49 million operating loss for the fiscal year that just ended on September 30.
Its plan to restore financial well-being to the health care system focuses in large part on the resolution of the ongoing losses at Memorial, which is not financially viable and is not projected to ever be viable.
Related Slideshow: The Power List - Health and Education, 2016
Russell Carey - A name few outside of Brown’s campus know, but Carey is the power source at the Providence Ivy League institution.
Today, his title is Executive Vice President and he has had almost every title at Brown short of President. Carey is a 1991 graduate of Brown and has never left College Hill.
While Brown’s President Christine Paxson — who is functionally invisible in Rhode Island — is managing alumni affairs and fundraising, Carey is influencing almost everything in Rhode Island.
Top Raimondo Appointment
Nicole Alexander-Scott - MD, MPH, and rock star in the making. As Director of the Rhode Island Department of Health, she is fast developing a reputation as someone in the Raimondo Administration who can get things done. Her counsel and leadership on developing a strategy on opioid addiction has been widely been lauded.
In addition, she has handled the mundane - from beach closings to food recalls - with competency. An expert in infectious disease, it may be time for her to become a strong leader on Zika.
Ronald Machtley - Bryant University's President rightfully deserves to be on a lot of lists, but what few understand is that Machtley’s influence extends far beyond Bryant’s campus in Smithfield. Machtley could make this list as a business leader or as a political force as much as for education.
Machtley is recognized for transforming Bryant University from a financially struggling regional college to a university with a national reputation for business.
Machtley serves on Amica’s Board and the Rhode Island Foundation, and also serves on the Board of Fantex Brands.
Larry Purtill - While Bob Walsh gets the face time as the Executive Director in the media for the NEA of Rhode Island, NEARI President Purtill tends to be the inside man who gets things done.
The teachers' largest union is formidable, but is still reeling from the beat down it took when Gina Raimondo’s pension reform cut the benefits of teachers disproportionately over other employee groups.
Make no mistake about it - not much happens in education in Rhode Island without Purtill's sign-off.
Mim Runey - While Rhode Islanders wait, and wait some more, for development on the 195 land, Johnson and Wale's University's Runey is watching it come to fruition, as JWU is set to open the first completed building on the former Interstate on September 1, when it will host a ribbon cutting for its John J. Bowen Center for Science and Innovation.
Under Runey, JWU continues to establish its foothold as one of the country's top schools for culinary training. Now Runey will oversee the addition of the new building on the old 195 which will house the university's School of Engineering and Design and its biology program.
In 2015, students from the School of Engineering & Design participated in the construction of the Holocaust Memorial on South Main Street, a collaboration between the Jewish Alliance of Greater Rhode Island and the Holocaust Education Resource Center of Rhode Island.
A true community partner in every sense, JWU under Runey's watchful eye is expanding to an even greater presence in Providence.
Chairman of the Board
Edwin J. Santos - The former banker is Chairman of the Board of CharterCare, after having been a top executive at Citizens Bank. He has been a board leader for Crossroads, Washington Trust, Rocky Hill School -- you name it and Santos has helped to lead it.
His best work to date just might be at CharterCare, where he has helped the once fledgling hospital (Roger Williams Medical Center) into a growing hospital system.
Weber Shill - He serves as the Chief Executive Officer of University Orthopedics, or in other words, dozens and dozens of oh-so-confident docs.
Shill has a background in Engineering and a Masters in Business Administration from the Whitemore School at the University of New Hampshire. Experienced in managing medical groups, but this group is big and influential.
Timothy Babineau - President and CEO of Lifespan, Rhode Island's biggest healthcare organization, where financial challenges make the job that much more complicated.
Now, the critics (GoLocalProv included) are raising concerns about the multi- billion dollar organization's refusal to make any contribution to the City of Providence. Lifespan is like General Motors, big and hard to innovate the organization.
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