SAN DIEGO—Scripps Health, San Diego, is restructuring its five hospitals and 20 outpatient centers under a new management model in an effort to cut costs and minimize job reductions. The move, according to a news release, is part of a plan to lower the system’s costs ahead of anticipated cuts in Medicare reimbursement because of healthcare reform and cuts by private payers. The restructuring effort, which began on Oct. 1, will divide the system into four operational divisions. They are the corporate medical division, led by Scripps Chief Medical Officer Brent Eastman; the clinical operations division, managed by Corporate Senior Vice President Barbara Price; the support services division, led by Corporate Senior VP John Armstrong; and the administrative services division. No lead executive was identified for administrative services, but that division will cover finance, human resources, legal, government affairs and several other areas, according to the news release. Scripps said its new horizontal co-management structure will be implemented across all of its facilities to reduce variations in patient care and redundancies in its staffing and supply chain. A preliminary audit suggested the move could save the system $150 million annually, according to the news release.
Regionals: Scripps Health restructuring its hospitals, and other news ...
ANAHEIM, Calif.—Anaheim General Hospital has achieved recertification by the CMS after losing its contract with the federal agency in July 2009, according to the hospital. The 126-bed hospital hired a new leadership team and worked with state and federal surveyors to make changes to improve quality and safety at the facility, officials announced. This included buying new laboratory equipment and implementing clinical and patient-safety systems as well as new compliance and performance-improvement systems, according to a hospital news release. The hospital will receive reimbursement for Medicaid and Medicare patients treated effective Sept. 7. The CMS notified the for-profit hospital of its recertification in a letter sent Oct. 20, according to the CMS. “Achieving recertification was the No. 1 goal of our new leadership team, and we could not have attained it without the extraordinary dedication and commitment of our physicians, nurses and staff,” Anaheim General CEO Tom Salerno said in a statement. “Going through the recertification process has been a challenging but positive experience.”
SCOTTSDALE, Ariz.—Rural/Metro Corp., Scottsdale, Ariz., said it would refinance debt and pay off cash-collateralized letters of credit with a $200 million private offering and another $175 million in secured financing, some of which also would be used for fees and working capital and general corporate purposes, according to a news release from the private emergency services and medical transportation company. The company said the $175 million would replace its senior secured revolving credit, term loan and letter of credit facilities. Rural/Metro reported income from continuing operations of $6.2 million on net revenue of $531 million for the year that ended June 30, 2010, according to the company’s Securities and Exchange Commission filing.
BOULDER, Colo.—Boulder Community Hospital has announced plans to expand the size of one of its facilities by more than 100,000 square feet in an effort to streamline operations and consolidate services. As part of a 10-year development strategy outlined in a news release last month, officials from the 185-bed hospital said they planned to concentrate most of their inpatient acute-care services—including surgery, imaging and lab services—at Boulder Community Foothills Hospital, one of BCH’s three facilities. The expansion is expected to take three years and cost roughly $110 million. After that project’s completion, BCH’s main facility in northwest Boulder will transition from an acute-care hospital to the central location for business operations, as well as outpatient, behavioral health and rehabilitation services. Based on early projections, that second phase of development will take about two years, at a cost of $15 million, according to the release. David Gehant, the hospital’s CEO, said the changes would improve access to care for patients and also would ease burdens on physicians. “Our physicians will benefit from the improved physical environment and greater collaboration with their colleagues and other caregivers,” Gehant said in the release. “They’ll no longer have to provide coverage for two facilities, which can be quite taxing for those with very busy practices.” In the final phase, officials will decide how best to use Mapleton Center, the hospital’s current outpatient services facility. The hospital provided no timeline or budget for that project.
OAKLAND, Calif.—Alta Bates Summit Medical Center held a groundbreaking ceremony last week on a $350 million project, according to a news release. The hospital is part of not-for-profit Sutter Health, Sacramento, Calif. The project includes 238 private patient rooms, a 21,000-square-foot emergency department with 30 beds and a parking structure with 1,000 spaces. The facility will be equipped to handle electronic health records, patient monitoring and electronic registration. The new pavilion is being built on the former site of Samuel Merritt University’s Bechtel Hall. The hall was demolished in August, with more than 90% of the materials recycled. The project is expected to be completed in 2014.
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