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IRON MOUNTAIN -- Despite financial worries, officials at Dickinson County Healthcare System believe the hospital's acquisition by Bellin Health will be completed without delay.
Bellin, a non-profit health corporation based in Green Bay, Wis., announced plans in early December to acquire DCHS by summer. An acquisition date has not been finalized, but both sides are anxious to have a definitive agreement soon, said William Edberg, chairman of the DCHS Board of Trustees.
"There is no reason to believe that this is not going to go forward," Edberg said after a board meeting Thursday. "Bellin has gone through a tremendous amount of effort."
Public concerns recently surfaced after DCHS offered temporary layoffs to staff. "We have short-term cash needs we need to satisfy," Edberg acknowledged.
John Schon, DCHS administrator-CEO, said the hospital is trying to "right-size" to accommodate a seasonal downturn and hold down costs. DCHS has been ranked among the nation's top hospitals by Healthgrades and patient care remains the main priority, he added.
"That's been our goal to maintain that (top ranking)," he said.
A hurdle to the acquisition has been cleared as the Michigan Nurses Association has agreed to settle pension obligations. As part of the pension arrangement, 60 employees hospital-wide have opted to retire, Schon said. Although some will return part-time, the hospital will see some financial relief as a result, he said.
Only a few employees have taken voluntary layoffs.
Over the years, Schon said, the hospital has spent millions to subsidize practices to ensure round-the-clock emergency coverage in various specialities. But emergency orthopedic coverage, for one, could see a temporary lapse.
"In the short run, we may have a void in that area," Schon conceded, adding Bellin could possibly help fill the gap.
Financial challenges for DCHS the past two years have been daunting.
After posting a gain of nearly $3.2 million in 2015, the hospital ended 2016 with an operating loss of about $3.6 million. The year-to-date loss reported through November 2017 is nearly $9.7 million.
Hospital officials have said that procedural and regulatory changes in Medicare and other insurers have cost DCHS $8 million in revenue in each of the past two years. Discounts for commercial insurers -- Michigan Blue Cross/Blue Shield in particular -- also are a factor.
The hospital operates as a Michigan municipal health facility corporation under Public Act 230. As such, it receives no direct county appropriations or taxpayer support and has been self-sustaining since moving to its U.S. 2 facility in 1996. DCHS has more than doubled its staff and patient utilization since then, Schon said.
Jim Anderson can be reached at 906-774-3500, ext. 26, or janderson@ironmountaindailynews.com.