Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.twt.news From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Leland Hospital says it's doomed if rates don't rise Date: Sat, 21 Nov 92 17:35:41 EST Message-ID: \SE A;METROPOLITAN \HD Leland Hospital says it's doomed if rates don't rise \BY Laura M. Litvan \CR THE WASHINGTON TIMES Three years after public outcry and a lawsuit convinced the owners of Leland Memorial Hospital to drop a plan to scale back services, administrators of the 50-year-old Riverdale facility are threatening to close it. The financially ailing hospital has been losing $200,000 a month because of declining admissions. A hospital official said this week that unless state regulators approve a boost in Leland's rates, the hospital will have to close. "Although the hospital in the last couple of years has undergone significant improvements, the fact is that we're still losing a significant amount of revenue," said Ted Lewis, the hospital's chief administrator. In October, state regulators rejected Leland's request for a 24 percent rate increase, which would have boosted its revenues by almost $7 million a year. The staff of the Health Services Cost Review Commission, which sets rates at the state's general hospitals, said Leland's charges for many services are above the average for area facilities. "The hospital is not as efficient as peer institutions in Prince George's and Montgomery counties," said John Comers, executive director of the commission. Leland is appealing to the full commission, which will make a decision by mid-January. If the state does not allow the rate boost, Mr. Lewis said, the hospital will seek permission to close "in an orderly fashion." Even without permission, the hospital will run out of money and shut down, he said. Prince George's County Executive Parris Glendening said yesterday that he was briefed by Leland administrators about the hospital's financial condition and is convinced that it is in dire need of more money. He said county officials plan to write state regulators about their concerns. "It is an extra important asset to Prince George's County, but particularly in that part of the county," Mr. Glendening said. The hospital serves many of the county's seniors and is near several large communities, including Hyattsville, Riverdale, Mount Rainier and College Park. Riverdale officials are reviewing the terms of an $8.3 million bond agreement with the hospital to see if it can close without city permission, City Attorney Tim Maloney said. Pat Eisenschmidt, president of the Riverdale Crestwood Citizens Association, said many in the community feel an emotional attachment to Leland. "It's really our lifeline," Mrs. Eisenschmidt said. "My husband was there after he had a heart attack. It's so convenient, and it is a good hospital. I think our community would be lost without it." The hospital's owner, Adventist Healthcare Inc., in 1989 considered transferring Leland's 120 beds to two Montgomery County facilities it owns, Shady Grove Adventist and Washington Adventist hospitals. Adventist Healthcare wanted to convert Leland into a rehabilitation center for seniors while keeping its emergency room open. The plan caused an outcry from the community and a court battle. The owners decided to spend more than $7.5 million on improvements, and admissions crept up. This article is copyright 1992 The Washington Times. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM