Why 4 hospitals are closing and what it means for ASCs

Hospitals are continuing to close due to mounting financial pressures and operational challenges.

Here's why four hospitals are closing and how it could affect ASCs:

1. Port Arthur-based Medical Center of Southeast Texas, an affiliate of Dallas-based Steward Health Care, closed its campus in Beaumont Feb. 2. The closure includes its emergency department and all hospital-related services, which are being relocated to the center's Port Arthur campus.

"We found that the Beaumont campus was severely underutilized given the needs in the region," a Steward spokesperson said in a statement shared with Becker's Jan. 25.

2. Green Bay, Wis.-based Prevea Health plans to close 19 health facilities and two hospitals in Western Wisconsin on or before April 21. Prevea Surgery Center in Green Bay will not be affected by the closures. 

"Like many health systems, we have had to grapple with the lingering impacts of the pandemic, the effects of inflation, workforce challenges and other industry-wide trends. As a result of these persistent operational challenges and after thorough consideration, we have made the difficult yet necessary decision to exit the Western Wisconsin region and focus our efforts on our Eastern Wisconsin operations," the system wrote in a January press release.

3. The state of New York is planning to significantly shrink or close University Hospital at Downstate in New York City's Brooklyn borough. Closing the inpatient services at SUNY Downstate will free up state funds to build an ASC, a new urgent care center and increase primary care, SUNY Chancellor John King Jr. told The New York Times

Mr. King told Becker's in a statement that SUNY has "weathered years of financial instability and seen many of its facilities fall into disrepair, jeopardizing the viability of our hospital facility."

With hospitals cutting services or closing, ASCs should prepare to be on the frontlines of care delivery as a potential surge of patients comes through their doors, experts told Becker's

"While some patient volumes are shifting to ASCs, the practice owners need to be able to handle this increase in volume and the case complexities, as well as the rising staffing costs," Ali Ekbatani, DO, executive vice president and American Group President at North American Partners in Anesthesia, told Becker's. "ASCs, despite the potential surge of new patients, will be in a good position to serve these patients. They will need to build upon operational efficiencies to maintain a high level of patient experience for these new incoming patients."

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