Hospital Group Cites Cost In

Flushing should see "only a minimal health care service impact" from the upcoming, planned closure of St. Josephs Hospital, officials from the hospitals parent, St. Vincent Catholic Medical Centers (SVCMC) said Tuesday a conclusion that physicians and patients disputed.
"The St. Josephs Hospital facility was not very competitive, in terms of health care services delivered in the area. In terms of services delivered, Queens Hospital Center is the big, major hospital in the area," said Mike Fagan, St. Vincents director of media relations. "St. Josephs lack of competitiveness, combined with the huge capital outlay that would have to occur, has led us to make a difficult, but necessary decision."
Fagan said SVCMC is trying to improve cash flow by $150 million. The hospital network ended 2003 with $68 million in operational losses. The proposed St. Josephs closure is part of the overall cash flow improvement strategy, which also includes the re-engineering of business and clinical processes, and revenue enhancements.
"We are confident that the turnaround initiatives will result in increased revenue and help us to better manage our resources, to insure that Saint Vincent Catholic Medical Centers supports and grows its healthcare mission," SVCMC CEO David Speltz said.
The 400-employee, 100-bed St. Josephs facility would need a minimum of $40 million in capital improvements over a 5-year period, Fagan said, to modernize the facility – an enormous sum, but one that also would not guarantee that the hospital would achieve positive, administrative and financial objectives.
"Essentially, we were looking at a $40 million outlay over the next five years, just to make the hospital competitive in the marketplace, with an undetermined outcome," Fagan said.
Currently, the hospital’s in-patient services draw few patients from the surrounding community, with the average daily census at less than 65 patients in the acute-care units, Fagan said. Further, Fagan said St. Josephs out-patient care and in-patient care services could be more efficiently handled by Mary Immaculate Hospital in Queens and St. Johns Queens Hospital two other hospitals in the St. Vincent hospital network.
Approximately 400 health care professionals are employed at St. Josephs. Fagan said it was "too soon to speculate" regarding how many jobs would be eliminated, under the plan.
"Hopefully, as we go forward with this process, well be able to retain and reassign as many jobs as possible," Fagan said.
Officials at the New York branch of 1199/S.E.I.U., the largest hospital union, have characterized the St. Vincent plan as a modest restructuring a proposed change thats smaller than the move the union had anticipated.
Nevertheless, physicians and patients disputed both SVCMCs balance sheet and cash flow for St. Josephs and the proposed closures impact on health care services.
"They are absolutely incorrect regarding St. Josephs balance sheet and cash flow," said Dr. Patricia Thomas, a general physician whose practice has included treating patients at St. Josephs Hospital since 1985. "They [SVCMC] know that St. Josephs Hospital is in the black [is profitable]. In fact, our profitability is subsidizing deficits at other hospitals in their network."
Thomas characterized the proposed closure as "totally uncalled for, totally unwarranted."
"Theyre making a decision based in Manhattan, not based on hard, real budget numbers for our hospital based in Queens," Thomas said. She added that the closure would "have an enormous impact on health care service in the Flushing area, particularly on services provided in ophthalmology, podiatry and womens health care services." She also disputed SVCMCs $40 million hospital-upgrade estimate:
"It would cost no where near $40 million; it would be closer to $20 million," Thomas said. Thomas added that she will coordinate an effort with existing community groups to get a minimum one-year delay for any decision affecting St. Josephs. That time length will give physicians and citizens time to formulate and offer an alternative to closure, Thomas said.
"Right now, were exploring every option, including the possibility of putting a coalition together to raise the $20 million and fund the hospital repairs and upgrades, by ourselves," Thomas said.
Any effort to save the hospital, "would really help retain health care services in the community," said Barbara Basler, a Fresh Meadows resident who accesses St. Josephs for medical services for her family.
"Losing the hospital would be such a loss. The hospital has top-flight care in ophthalmology, and other fine services," Basler said.
Basler added that "St. Josephs is convenient, just a short, 5-minute trip" when she transports her mother, Catherine, for medical care.
"Others in the community rely on St. Josephs," Basler said. "It would be just terrible if the hospital closed."