Aging buildings, changing demographics spur flight to suburbs.
Nearly as old as the railroad that slices through this southern
Illinois city just east of the Mississippi River, St. Elizabeth's
Hospital has been a downtown bedrock since 1875.
Started by three nuns from a Franciscan order in Germany, the
Catholic hospital still seeks "to embody Christ's healing love" to the
sick, the aged and the poor, according to its mission statement. It is
so tied to the city that when the local economy slumped in 2009, the
nonprofit St. Elizabeth's gave $20 to every employee to spend on Main
Street, sending hundreds of shoppers out to the mostly mom- and
pop-owned stores.
But St. E's, as locals call it, now faces its own
financial troubles, largely a result of the costs of maintaining an
obsolete facility and of treating more low-income and uninsured patients
from Belleville and neighboring East St. Louis, one of the poorest
cities in the Midwest.
After a decade of losing money, St. Elizabeth's officials are taking a
radical step: Like a small but growing number of hospitals around the
country, they plan to close the 303-bed hospital and move elsewhere.
They are seeking state approval to build a $300-million facility 7 miles
northeast, in O'Fallon, a wealthier city that is one of the
fastest-growing communities in the St. Louis region with new
subdivisions, proximity to a regional mall and quick access to
Interstate 64.
Describing plans to leave behind some services, including a walk-in
clinic, St. Elizabeth's CEO Maryann Reese insists the hospital is not
abandoning the city or the poor.
But that's exactly how many residents, community leaders and clergy
see it. If St. Elizabeth's leaves downtown, they say, it will limit care
for many poorer residents, especially those dependent on public
transportation, and lead to overcrowding at the city's one other
hospital, which is downsizing. Many also worry about the loss of jobs
and of the visitors to the hospital who patronize local shops and
eateries.
Geri Boyer, who runs a bed and breakfast and an engineering firm on
Main Street, said that as a Catholic, she's "appalled" by the hospital's
plan. "I do think they are putting profit motivations over the mission
of serving the poor. I am upset and embarrassed for [them]."
"Communities can be tipped by the loss of a vital medical
institution," Belleville Police Capt. John Moody II wrote in a scathing
letter about the plan to a state review board. "There is too much at
stake and the loss will be catastrophic and I fear unrecoverable."
Geography Is Destiny
Hospitals have moved to follow population migrations before, but the
relocations are becoming more common. That's partly due to the aging of
many facilities built in the 1950s and 1960s, and the desire to attract
better-paying patients. A 2012
Health Affairs study
found that hospitals in 12 markets used geographic expansion
strategies, including building new hospitals or adding freestanding
emergency departments, to
"capture" well-insured patients.
"Where you choose to place new facilities almost always involves
moving to an area where there is a substantial privately insured
population," said Paul Ginsburg, chairman of medicine and public policy
at the University of Southern California.
Currently, hospital relocations are planned or underway in South and
Central Florida, eastern Tennessee, central Georgia, Birmingham, Ala.,
and northeast Ohio. Some have stirred controversy, as in Belleville:
- Just
west of Fort Lauderdale, HCA Inc., a for-profit hospital chain, plans
to close Plantation General Hospital and open a new hospital 7 miles
away in more affluent Davie, near a medical school. "It's all about
greed," said Plantation Mayor Diane Bendekovic. When HCA offered to keep
some outpatient services in town, she told them: "Don't throw Plantation any crumbs."
- Tennova
Healthcare is moving its flagship Physicians Regional Medical Center
near downtown Knoxville, Tenn. closer to higher-income suburbs 8 miles
west. "Clearly ... they want to be near the better ZIP codes" said Tony
Spezia, CEO of Covenant Health, owner of Fort Sanders Regional Medical
Center, which will become the last general hospital downtown. Tennova is
owned by Community Health Systems, a large for-profit hospital system.
- Just
outside Cleveland, Lakewood Hospital in Lakewood, Ohio, which is
managed by the Cleveland Clinic, is slated to close in 2016, and
patients will be directed to the Clinic's newer Fairview Hospital 3
miles away or to another facility being built in Avon, 13 miles away.
Both Fairview and Avon are higher-income towns. Lakewood officials say
losing the hospital and its 1,000 employees could have a prolonged
impact.
Hospital officials point to their aging, landlocked
facilities and argue it is cheaper to build, rather than renovate. What
they don't say publicly is how geography is often economic destiny for a
hospital, especially at a time of increasing financial pressure as a
result of Medicare funding cuts, including penalties that may result
from new pay-for-performance measures in the Affordable Care Act.
By moving to wealthier areas, hospitals can reduce the percent of
uninsured and lower-paying Medicaid patients, while increasing the
proportion of privately insured patients -- what hospitals refer to as
attracting better "payer mix." That's also why they locate outpatient
centers and medical offices in affluent suburbs. But relocations often
spark anger from those left behind, who worry about loss of jobs and of
access to care, particularly for the poor.
When the hospitals are nonprofits, like St. Elizabeth's, questions
loom larger because they are exempted from taxes in exchange for
providing benefits to the community. "Hospitals were established in
inner cities where the greatest needs were and now, essentially, that
charity obligation has gone by the wayside as they are looking at their
bottom line," said Gerard Anderson, director of the Center for Hospital
Finance and Management at the Johns Hopkins Bloomberg School of Public
Health.
Even nonprofit hospitals want to be near wealthier residents. "You move to where the money is," he said.
Hospital Moves
Hospitals are increasingly relocating as they follow
population growth and look for greater accessibility and more privately
insured patients.
Here are some pending moves:
- St. Elizabeth's Hospital: Moving from Belleville, Ill., to O'Fallon, Ill.
- Plantation General Hospital: Moving from Plantation, Fla., to Davie, Fla.
- Physicians Regional Medical Center: Moving from near downtown Knoxville, Tenn., to West Knoxville
- Northside Hospital-Cherokee: Moving from north Canton, Ga. to Highway 20 near Canton Marketplace
- Florida Hospital Apopka: Moving from downtown Apopka, Fla., several miles away near the intersection of several state roads
- Lakewood Hospital: Closing in Lakewood, Ohio, after the opening of Avon Hospital in Avon, Ohio
- Riverside Shore Memorial Hospital: Moving from Northampton County, Va., to Accomack County, Va.
- Mount Carmel Health System: Moving from Franklinton, Ohio, to Grove City, Ohio
And some recently completed:
- Roane Medical Center, from downtown Harriman, Tenn., to Midtown, Tenn
- St. Mary's Health Center, from downtown Jefferson City, Mo., to a location near two highways
- Wellstar Paulding Hospital, from Dallas, Ga., to Hiram, Ga.
- Martha Jefferson Hospital, from downtown Charlottesville, Va., to a suburban location several miles east
- St. Joseph Regional Medical Center, from South Bend, Ind., to Mishawaka, Ind.
- Porter Regional Hospital, from downtown Valparaiso, Ind., to the intersection of two highways several miles away
- Boulder Community Foothills Hospital, from downtown Boulder, Colo., to a site several miles east
'Built for Healthcare in the 1950s'
That doesn't sit well with Belleville Mayor Mark Eckert, who was born
at St. Elizabeth's, drove an ambulance there when he was a teenager,
and now lives three blocks away where he can see the lights on the
hospital helipad from his living room. He fears the move will leave
barren whole blocks in the middle of the city, devastate the downtown
economy, and make it more difficult for some people to get care.
"They are definitely running from the poor," he said.
St. Elizabeth's officials deny that, noting that only a quarter of
their patients come from Belleville and the new site will be closer to
the majority who live in other communities, including eight of the 10
ZIP codes in their service area with the highest poverty rates. "Being
more centrally located will also make care more accessible for everyone,
regardless of income," the hospital said in a statement.
But the hospital faces a perception problem, in part because Belleville is older and poorer than O'Fallon.
Median household income
in Belleville is about $47,000, compared to over $75,000 in O'Fallon.
By moving northeast, the hospital also moves farther away from East St.
Louis, though hospital officials say the interstate location shortens
drive time. Eckert says many poor people don't have cars and there is no
direct public transportation to the O'Fallon site.
Eckert does not dispute that St. Elizabeth's is under stress and
needs to modernize. The hospital lost $10.5 million on $148 million in
revenue in 2013,
according to its latest audited financial statement.
That same year, Springfield, Ill.-based Hospital Sisters Health System,
which owns St. Elizabeth's and 13 other hospitals in Illinois and
Wisconsin, made $168 million on nearly $2 billion in revenue.
Most of St. Elizabeth's operates out of a 60-year-old building that
administrators say is difficult for many people to get to because of
one-way roads. In addition, they say, patient rooms are too small and
the waiting area for the emergency room is cramped.
"It is extremely challenging to operate a hospital that
was designed and built for healthcare in the 1950s," Reese, the CEO,
told a state regulatory board that reviews major hospital projects at a
January hearing. With several members absent, the board voted down the
relocation. But under state rules, the hospital can respond to its
concerns and a second hearing and vote are expected on April 21.
Eckert said the city offered to help St. Elizabeth's rebuild downtown
and even suggested another location adjacent to a college and a train
line on the edge of town. But like so many other businesses that have
left Belleville, hospital officials wanted quick access to the
interstate. Hospital officials say they considered locations in
Belleville, but settled on 114 acres of farmland they bought in O'Fallon
in 2011 as a site to build a 144-bed facility.
Move Angers Rival Hospital
Another vehement opponent is Memorial Hospital, a few miles from
downtown and the only other hospital in Belleville. It, too, is
targeting the more affluent population to the east of the city --
building a 94-bed hospital in Shiloh, also just off the interstate and a
5-minute drive from the proposed site for St. Elizabeth's. State
officials approved that facility in 2011 -- over the objection of St.
Elizabeth's, which claimed there was no need for it.
"As a nonprofit community hospital, we want to fulfill our mission
-- and meet our budgetary needs," said Memorial CEO Mark Turner. "And
to do that, there has to be enough money coming in to pay for that."
Unlike St. Elizabeth's, though, Memorial retained its Belleville
hospital, albeit with fewer beds. Memorial officials say they fear that
if St. Elizabeth's moves, their Belleville hospital will be overwhelmed
and will get most of the area's uninsured and Medicaid patients.
Memorial also worries the new St. Elizabeth's will pull the best-paying
patients from its new hospital set to open next year.
Most opponents support St. Elizabeth's building a new hospital, but
they want it in Belleville. "Why do you want to be further away from the
people you are helping?" asked Stephanie Dorris, who helps lead a
community group opposing the move, pointing to the empty lots around the
hospital.
That was the same question some asked in South Bend, Ind. in 2009,
when St. Joseph Regional Medical Center left its downtown location after
125 years for the richer and faster growing suburb of Mishawaka, 7
miles away. In its final year in South Bend,
St. Joseph lost $42 million.
In the years since, the nonprofit Catholic hospital has made about $50 million in profit, financial statements show.
But Karl Nichols, who heads the St. Joseph County Minority Health
Coalition, said that hospital's departure has hurt the poor. He said
that those without cars have less access to care and the city's
remaining hospital is overburdened.
'You Have To Be Prepared'
Driving through Belleville on a recent morning, police Capt. Moody
raises other concerns. As he passes several elementary schools close to
St. Elizabeth's with children playing outside at recess, he worries
about the unthinkable: how the loss of the hospital might affect
response to, say, a mass shooting. "You have to be prepared," he said.
He credits St. Elizabeth's with saving the life of a Belleville
police officer who was shot in 2006 two blocks from the hospital.
"People here feel secure knowing St. E's is where it is," Moody said.
Marilyn Lanter, 61, who works at Community Kindness Resale Shop on
Main Street in Belleville, says she's been treated at St. Elizabeth's at
least six times over 20 years. "It's a place I trust with my life," she
said. "It's comforting to have the hospital so close, particularly for
people like me who don't drive."
The drive from the existing hospital in Belleville to the proposed
location in O'Fallon takes 15 to 20 minutes, but it's like going through
a time warp. St. Elizabeth's sits across from the gothic-style St.
Peter's Cathedral down the street from a post office, a Catholic school,
a Boy Scouts office and the City of Belleville Parks and Recreation
building. In contrast, the O'Fallon hospital site is behind a Hilton
Garden Inn and just across the interstate from shopping centers that
include a Target and other big box retailers.
Rev. Joshua Pittman of St. Paul's United Church of Christ is
philosophical about the proposed change even though it will cause pain.
"Churches move too," he said. "It's what happens when saw mills close
down and people move."
But to Rev. Monsignor John Myler, rector of St. Peter's, the plan
seems a betrayal. "'Only 7 miles is quite a distance for the poor, who
have no means of transportation," he wrote in opposition. "It is
contrary to Francis to ask those in need to travel to him. Rather
Franciscans are -- and have been for centuries -- right among the
people, not in a well-to-do place, asking the people instead to come to
them."
This article, which first appeared April 13, 2015, also appeared in USA Today and was reprinted from kaiserhealthnews.org with permission from the Henry J. Kaiser Family Foundation. Kaiser Health News
,
an editorially independent news service, is a program of the Kaiser
Family Foundation, a nonprofit, nonpartisan health policy research and
communication organization not affiliated with Kaiser Permanente.