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untanglingwebs
El Supremo
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Topics in this article: Public Policy Health Care Crain's Michigan Business Rick Snyder
Originally Published: September 16, 2014 2:33 PM Modified: September 17, 2014 2:11 PM
Bill would allow McLaren Health to build new hospital in Oakland County
By Chris Gautz
MSU study predicts Clarkston-area McLaren hospital would be successful but could lead to increased health care costs
Correction appended
The Michigan Legislature is again considering a bill to enable Flint-based McLaren Health Care Inc. to build a new hospital in Oakland County.
This morning, Senate Majority Leader Randy Richardville, R-Monroe, introduced Bill 1073, which would allow McLaren a new hospital in Independence Township, so long as it also continues to provide $10 million a year in uncompensated care at its current Pontiac hospital and meet several other conditions.
These include maintaining patient access and at least 70 licensed beds in Pontiac and developing a medical education and job training program.
McLaren wants to move 200 unused beds from its McLaren Oakland Hospital in Pontiac to a hospital it plans to build on 80 acres it owns in Independence Township. But it has been blocked from doing so by the state and courts.
Richardville’s bill is now in the Senate Government Operations Committee, which he chairs. The majority leader said he wants to get the bill to Snyder’s desk before year’s end.
“Can this (new hospital) wait? I don’t think so,” Richardville said.
A previous bill was introduced in Lansing after the Michigan Department of Community Health rejected a certificate-of-need application for the hospital in 2012, but that bill died.
At the time, Snyder told Crain’s he didn’t see value in legislative carve-outs or exemptions to the certificate-of-need review. But Richardville said that he has spoken with Snyder and that the governor seems supportive of the new bill.
The legislation contains language specific to McLaren that would allow it to build the new hospital, including a special-purpose change in certificate-of-need regulations to allow it to transfer hospital beds eight miles instead of two — about the distance from McLaren Oakland to the Independence Township site.
The bill also would expand the certificate-of-need commission to 13 members from 11. The governor would appoint the two new members, who would represent the general public, and designate one of them as commission chair. The commission currently elects its own chair.
Richardville said further review of the certificate-of-need system may be necessary in the future.
“It’s worth taking a look at the whole picture,” he said. “Does it still make sense?”
According to the National Conference of State Legislatures, about 36 states have a CON review process. The state says the CON process it is meant to balance cost, access and the quality of health care in Michigan. Opponents say it actually helps preserve monopolies and limit competition and doesn’t necessarily rein in costs.
Chris Gautz: (517) 403-4403, cgautz@crain.com. Twitter: @chrisgautz
Editor's note: This story was changed from an earlier version that indicated the bill had the apparent blessing of Gov. Rick Snyder. Also, an earlier version of this story indicated the legislation would expand the radius for CON bed transfers; in fact, the proposed radius change would be specific to McLaren. |
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Tue Sep 23, 2014 6:57 am |
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untanglingwebs
El Supremo
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Topics in this article: McLaren Health Care Health Care
Originally Published: January 06, 2014 2:06 PM Modified: January 07, 2014 3:02 PM
MSU study predicts Clarkston-area McLaren hospital would be successful but could lead to increased health care costs
By Jay Greene
Do more hospital beds lead to higher hospitalization rates?
A study last year by researchers at Michigan State University indirectly found that McLaren Health Care Corp.'s proposed 200-bed hospital in Clarkston could become a financial success by filling its beds with paying patients based on Roemer's law.
Under Roemer's law, a largely accepted health policy principle developed by legendary UCLA health researcher Milton Roemer, health care markets that increase available beds also increase per capita hospital utilization and costs.
But the $303 million McLaren Clarkston Hospital - proposed to be the centerpiece of the 80-acre McLaren Health Care Village at Clarkston - is on hold because of certificate-of-need denials by the Michigan Department of Community Health.
On Dec. 20, Judge Colleen O'Brien of Oakland County Circuit Court ruled against allowing the Flint-based 11-hospital system to build the hospital. O'Brien said DCH properly evaluated the proposed hospital based using CON regulations and its bed need methodology.
Last June, McClaren filed suit to reverse DCH's decision to deny a CON application for the hospital because it failed to comply with the "replacement zone" requirement, which allows bed transfers only within 2 miles of the existing hospital. The proposed Clarkston hospital is about 8 miles from Pontiac.
Greg Lane, McLaren's chief administrative officer, said Monday McLaren will appeal O'Brien's opinion. He said the company believes its CON application demonstrates a need for a hospital in Clarkston because of the distance patients have to travel for acute-care services.
"We will continue to pursue all available avenues including regulatory, legislative and legal, beginning with a vigorous appeal of Judge O'Brien's opinion, which we believe is flawed," Lane said.
Lane also rejected the validity of Roemer's Law in today's changing health care environment.
"It was a theory developed over 50 years ago and does not account for the evolution of reimbursement methods including those promoted by the Affordable Care Act," Lane said. "It serves no useful purpose in modern health or economic policy other than to misdirect or misinform."
But Paul Delamater, a post-doctoral research associate in MSU's department of geography, said the study confirmed that the 200 unused beds at McLaren Oakland Hospital in Pontiac, if allowed to be moved to Clarkston where no hospital exists, would be filled with patients.
MSU's study - "Do More Hospital Beds Lead to Higher Hospitalization Rates? A Spatial Examination of Roemer's Law" - reviewed 1.1 million admissions to 169 acute-care hospitals in Michigan during 2010.
The mathematical evaluation took into consideration the various factors that lead to hospitalization, including access to primary care, health insurance coverage and medical conditions. It also included such variables as age, gender and ethnicity.
"The paper found that the presence of the beds themselves increases (the per capita) hospitalization rate, controlling for all population aspects," said Delamater, who conducted the study as part of his doctoral dissertation.
In other words, as the supply of hospital beds increases, the use of hospital services also increases, leading to an overutilization of hospital services and contributing to higher costs, said Delamater.
Delamater's co-authors include Joseph Messina, Sue Grady and Ashton Shortridge in MSU's department of geography and Vince WinklerPrins at Georgetown University.
New hospital could bring in big bucks
If ultimately built, McLaren Clarkston Hospital could be a big moneymaker if Roemer's Law holds true.
This is because Oakland County - which includes the Clarkston/Independence Township area - has the highest level of per capita income in Michigan at $36,138 in 2010 and one of the highest in the nation, according to the U.S. Census Bureau.
"McLaren wants to move these unused beds with the thought they will fill the beds if they move them to Clarkston," Delamater said. "The problem is Clarkston is already over-served as far as beds. McLaren says we can drum up utilization by moving our hospital there."
In its CON application, McLaren says the proposed hospital would create hundreds of construction and permanent health care jobs in the community. A study conducted for McLaren by Ann Arbor-based Thomson Reuters found a need for hospital beds in Clarkston.
Delamater said MSU's study did not directly address the need for a hospital in Clarkston, the costs of higher per capita utilization or the financial impact to surrounding hospitals.
Executives of several hospitals in Oakland County have told Crain's over the past two years there is no need for another hospital because occupancy rates are below capacity and dropping because of health care reform.
Citing another study conducted by MSU for Attorney General Bill Schuette, Delamater said the people of Clarkston are sufficiently served by the six surrounding hospitals.
"The people of Clarkston use hospital services just like everyone else in the state," he said. "Every single ZIP code has at least four hospitals within 30 minutes. This does not make them geographically or medically underserved."
Delamater said adding staffed beds to Clarkston will unnecessarily increase hospitalizations based on Roemer's Law.
"This will increase costs for everyone," he said.
Delamater said MSU did not study the effects of two new hospitals that opened nearly six years ago in Oakland County.
After also being denied CONs, Henry Ford Health System and St. John Providence Health System in 2002 won special state legislative approval to transfer beds from existing hospitals to new hospitals in Oakland County.
In 2008, 200-bed St. John's Providence Park Hospital in Novi opened, followed by 300-bed Henry Ford West Bloomfield Hospital in 2009. St. Louis-based Ascension Health is the parent of St. John.
Delamater also acknowledged MSU's study did not look into whether higher-quality hospitals tend to attract larger numbers of patients than lower-quality hospitals.
"We are interested in quality, but regardless of the quality of the hospital, any hospital that adds beds will be pressured to fill those beds," he said. "That will exist regardless of the quality of the hospital."
But under health care reform, the Affordable Care Act and the push to reward quality by payers, Delamater said Roemer's Law could change.
"The Affordable Care Act could affect Roemer's Law in the future. There are incentives (built into managed care contracts) to reward hospitals more for quality measures than quantity," he said.
For example, Blue Cross Blue Shield of Michigan is shifting its payment methodology from simply paying for billable services to paying hospitals and doctors for higher quality, improved outcomes and healthier patients.
"Shifting away to paying for quality could help to reverse Roemer's Law" by lowering utilization, he said. "Roemer's Law is about making money" by filling beds with patients.
"Creating incentives to keep people healthy and out of hospitals will reverse Roemer's Law," Delamater said. |
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Tue Sep 23, 2014 7:00 am |
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untanglingwebs
El Supremo
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I am not pleased with McLaren. After surgery 3 years ago I was treated badly by a nurse in intensive care. Then some guy with a clipboard came arund and said move upstairs. The move was into a room that seemed to be a storage room as it was filled with wheelchairs, walkers, chairs and more. They moved some stuff out, but I couldn't shower as the shower was still filled. Then they released me in the middle of the night although I could barely walk.
I just spoke to a dear friend who's wife recently had lung cancer surgery. The administration specified which rehab facility they wanted her to be moved to. After researching facilities the family selected another. The hospital then decided to release her without rehab although she could not stand. The husband refused to allow her to be released under these conditions. Later his daughter informed him that his wife was being released. When he returned to the hospital he found out she had fallen and hurt her mouth when they tried to get her out of bed.
Researching how a complaint can be made.
Is there a kickback for referring patient to this facility? |
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Tue Sep 23, 2014 7:12 am |
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untanglingwebs
El Supremo
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http://www.mlive.com/news/flint/index.ssf/2014/11/genesys_officials_clarkston_ho.html#incart_river
Genesys officials: Clarkston hospital project could cause loss of 500 jobs at Grand Blanc health park
The Genesys Health Park master plan calls for major updates to its Grand Blanc location through 2026, but the first project, a nursing facility for a senior village, could begin this spring. Other projects include updates to the athletic club, a retail center and working toward a Dort Highway extension. (Courtesy photo)
Eric Dresden | edresden@mlive.com
t
Eric Dresden | edresden@mlive.com By Eric Dresden | edresden@mlive.com
on November 28, 2014 at 5:00 AM, updated November 28, 2014 at 10:42 AM
GENESEE COUNTY, MI – A battle for a hospital near Clarkston and plans to add a senior village and redevelop property surrounding a Grand Blanc hospital have pitted two Flint-area health systems against each other.
But while one health system says there is room for both projects, the other maintains it will be forced to scale back plans if the state gives the go-ahead to the competition.
Genesys Health System claim that a new McLaren hospital just 21 miles south on I-75 would force Genesys to scale back its expansion plans. They estimate that about 10 percent of patients -- or about 7,000 discharges annually -- would not go to Genesys.
"Will it hurt us? Yes, it will," said Betsy Aderholdt, president and CEO of Genesys.
It would mean about a $25-million change in Genesys' bottom line and an estimated current 500 jobs lost, she said.
Flint-based McLaren Health Care for a decade has been trying to overcome opposition in its plan to build a new $300 million hospital near Clarkston to house 200 patient beds that would be transferred from its Pontiac facility, and is now turning to the Legislature for help.
Meanwhile, Genesys Health System has partnered with a developer that is preparing to break ground on a new $106-million senior retirement village -- one of the first steps in a multi-phase plan to expand its health park campus in Grand Blanc into a retail, health and wellness hub for Genesee County.
McLaren officials say both projects would contribute to the well-being of the region, and the competition would benefit health care consumers.
McLaren estimates a smaller percentage -- about 6 percent -- would be pulled from Genesys to its new location, according to its analysis through the Michigan Health and Hospital Association, said Greg Lane, senior vice president and chief administrative officer for McLaren Health Care.
Tracey Burtch, public affairs manager for the Michigan Health and Hospital Association, said data about where patients are coming from is collected from hospitals, but it cannot be shared publicly due to agreements with health systems.
As it stands, McLaren's plan has been rejected by the Michigan Department of Community Health's Certificate of Need Commission, the group that evaluates hospital bed requests. Now, McLaren has put its hopes in the state Legislature, which is considering a bill that would amend the Public Health Code and allow McLaren to move forward on construction of the Independence Township facility.
"We're just moving our own beds," Lane said.
McLaren's proposal for the Clarkston facility has also drawn the ire of other Oakland County health systems, but has won the support of Oakland County Executive L. Brooks Patterson and Independence Township officials.
McLaren's $300 million hospital would be paid for by the health system without subsidy and would help save lives in the area, McLaren officials said.
But Beaumont Health System officials, who oppose the McLaren building, have said it's not needed because there are many empty beds within 20 to 30 minutes of Clarkston.
Lane said Genesys had shown interest in the Independence Township area previously and doesn't understand why a new facility there would not be needed now.
"They went down to Clarkson 15 years ago, but they pulled out," Lane said.
Meanwhile, Genesys' future plans call for development surrounding the Grand Blanc Township hospital, including the creation of a senior village, a research and development corridor and more additions to the area including retail. The expansion would come through a combination of private development as well as an extension of Dort Highway primarily financed with public dollars.
Lane said McLaren supports any economic development in the county and believes senior housing is "vitally needed."
"I think that's great," Lane said about the plans announced by Genesys. "That would not have any detrimental impact to us."
As health groups offer differing services, Lane said more additions to the area is a good thing.
"The bottom line is competition is good," Lane said. "If they do things better than we do, our hats off to them. It's good for health care consumers."
Jim Boles, vice chairman of the Genesys Health System Board of Trustees, said over-capacity in this health care market caused by McLaren's Clarkston-area hospital would cause prices to increase.
"We've seen over-capacity and we've seen how it drives up cost," he said.
Aderholdt said Genesys' plan for the Grand Blanc health park could eventually mean phasing out parts of the Genesys hospital and adding emphasis on wellness care and proactive health care.
"We're creating the health care system of the future that we want," she said. "The current health care system isn't working as well as we want it to."
The additions at Genesys would help the creation of that system.
"Health care reform is saying we've got to think different about this," she said.
Eric Dresden covers business and suburbs for MLive-The Flint Journal. Contact him at edresden@mlive.com or 810-285-0650. Follow him on Twitter or Facebook. |
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Fri Nov 28, 2014 11:26 am |
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untanglingwebs
El Supremo
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| McLaren is focused on expanding statewide. Can the county afford the loss of 500 jobs. |
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Fri Nov 28, 2014 11:27 am |
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untanglingwebs
El Supremo
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Crans Detroit
Topics in this article: Oakland County Government Politics Health Care Hospitals McLaren Health Care
Originally Published: December 04, 2014 3:10 PM Modified: December 06, 2014 4:45 PM
Michigan Senate votes down bill on new McLaren hospital
By Jay Greene
In what may be the last option for Flint-based McLaren Health Care to get a new hospital built in Independence Township, the Michigan Senate today voted down a bill 26-11 pushed heavily by Majority Leader Randy Richardville, R-Monroe.
McLaren wants to transfer 200 beds from its half-filled McLaren Oakland hospital in Pontiac to a new $303 million hospital on 80-acre tract it owns and where it operates the McLaren Health Care Village at Clarkston.
Located at Exit 89 off I-75 at 5701 Bow Pointe Dr., plans for the McLaren Health Care Village include senior housing, assisted living, restaurants, banking, retail and joint ventures with medical device manufacturers and pharmaceutical companies.
In a recent editorial board meeting with Crain’s, McLaren officials said one option would be to invest the $300 million elsewhere, possibly in other states, and to further build out the McLaren Health Care Village.
“We put a lot into this, especially the last several weeks,” Greg Lane, McLaren’s chief administrative officer, told Crain's today. “We need a breather.”
Lane said McLaren had been waiting on a final decision on the future of the hospital before moving forward on adding new services at the Clarkston facility.
“There is still a need for a hospital out in Clarkston,” he said. “There will be a hospital out there one day.”
In support of a new hospital, McLaren has argued that population growth in the region supports the need for a new hospital. Hundreds of construction and health care jobs would be created, it said.
But hospital competitors and the Economic Alliance for Michigan said another hospital would increase health care costs for patients and employers.
“Lawmakers in Michigan have done the right thing by not allowing this bill to pass,” stated Bret Jackson, president of the Economic Alliance for Michigan. “We thank them for caring about health care cost containment for the state. A ninth hospital in an area with too few of patients would have caused significant financial stress to the health care industry. We also want to thank the Friends of Certificate of Need for all their hard work.”
Said Delaney McKinley, director of human resource policy for Michigan Manufacturers Association: “We're pleased that there is a clear recognition in the Michigan Senate that it is critical to maintain the CON process and contain health care costs wherever possible.”
McLaren wanted similar treatment in the state Legislature in 2002 that allowed two new hospitals to be built by Henry Ford Health System and St. John Providence Health System in Oakland County.
Last December, McLaren lost an administrative appeal to build the $303 million hospital when Judge Colleen O’Brien of Oakland County Circuit Court ruled against the 12-hospital system. McLaren then appealed to the Michigan Supreme Court, which has yet to rule on the case. |
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Mon Dec 08, 2014 6:46 am |
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untanglingwebs
El Supremo
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More labor unrest at McLaren Flint
Updated: Wed 3:58 PM, Aug 03, 2016
By: Randy Conat - Email
Home / ABC12 - News / Local News / Headlines List / Article
Another union is complaining about a lack of progress in contract talks with McLaren Flint.
FLINT (WJRT) - (08/03/16) - Another union is complaining about a lack of progress in contract talks with McLaren Flint. This time it's members of AFSCME Local 2650, which covers non-technical workers at the medical center.
It's been three years since the nearly 1,300 members of local 2650 have had a pay raise and nearly two years since their contract with McLaren Flint expired. They're getting frustrated over the lack of progress in negotiations.
"McLaren is not an easy corporation to negotiate with. It's been a battle all the way. Basically this corporation doesn't want to share," said Regina Childress, AFSCME Local 2650 president.
Members of 2650 work non-technical jobs at McLaren Flint, like patient registration and nurse aids.
One of the biggest issues that is slowing contract talks is a proposal by McLaren to raise the amount of money employees pay for health insurance.
"A lot of these members are single mothers who can't afford to have health insurance," Childress said.
In July, McLaren outsourced the dietary department. Many of the 120 workers were able to get jobs with the company that took over operations. Some took layoffs. Since then, the registered nurses at local 875 have been bringing in food trucks to provide an alternative to eating in the cafeteria. Many non-technical workers have been eating at the food trucks.
"I think they choose to be in solidarity with their members and choose to eat somewhere else," Childress said.
A federal mediator has been joining the contract talks for the past few months, but that hasn't moved negotiations along.
"It's really frustrating. It has taken absolutely too long to ratify a contract. It's two years. Our members are antsy about it. They don't know what's going on," Childress said.
The following statement was issued by the medical center: "McLaren Flint does not typically discuss specifics of contract negotiations publicly. We continue to negotiate with AFSCME Local 2650 in good faith and look forward to the successful completion of a new labor agreement between the two parties."
Last week, we reported the registered nurses union at McLaren Flint was also frustrated over the lack of a contract. |
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Fri Aug 05, 2016 2:59 pm |
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