Last week, the administration at Bradley County Medical Center in Warren announced that the obstetrics department had been shut down, sighting significant revenue loss.
A press release sent by the senior leadership team and the governing board stated that the decision to close the department was highly emotional but after a recent revenue analysis by Stroudwater and Associates, they found that the OB program is no longer sustainable.
“Hospitals in general are struggling,” BCMC Chief Executive Officer, Leslie Huitt stated. “There were the Covid years where there were all kinds of funding, including the Payroll Protection Programs. That federal funding is no longer coming down. My heart is broken over this decision because this department was very near and dear to my heart. “I finally had to stop thinking with my heart and think about what is best for this hospital as a whole.”
One reason given in the press release, which can be found in full at www.theeagledemocrat.com, was decrease in volumes of births.
“We have seen a steady decline in births at this hospital over the past decade,” Huitt added. “Even if we were able to deliver all the babies from Bradley County, it probably still wouldn’t be enough to break even. It’s been no secret that for years, the OB Department has been losing money but it is a service that everyone felt strongly about providing.”
According to Huitt, approximately three to five babies were born at BCMC per month. To have an OB department, certain staff members are required to be on call 24 hours a day. Those staff members would receive compensation regardless of whether or not a baby was delivered.
According to the Stroudwater and Associates study, BCMC had an annual loss of approximately $5 million last year, with $1 million of that coming from the OB department.
“We have gone over the numbers and made every effort to avoid this decision,” Huitt said. “As a critical access hospital, we had hoped to be the exception in providing OB services. But it is now time to swallow this bitter pill and move forward in our plans to grow and accommodate the healthcare needs of this community.”
Effective immediately, the Rural Health Clinic will help any existing OB patient in transitioning to a new provider of their choice. Any OB patient who presents to the BCMC Emergency Room will be treated in the ER and transferred to another facility as safety permits.
Huitt also stated that all staff that was employed in the OB department has had the opportunity to apply for open positions within the hospital. There have been no layoffs at this time. BCMC employees approximately 230 full or part time employees.
Funds for the financial analysis were provided through a grant from Delta Region Community Health Systems Development Program. The analysis is an ongoing process that is expected to last three years.
