SENATE POLICY COMMITTEE LOOKS AT IMPACT OF HOSPITAL CLOSURES

 HARRISBURG, JUNE 6 – During a Senate Democratic Policy Committee Informational Briefing held in Harrisburg today, state Sen. Connie Williams pointed to the critical need to ensure every Pennsylvanian has access to quality health care in light of hospital closures and mergers.

 “Health care must be available for every Pennsylvanian, which is why today’s informational briefing was so important – it will allow the committee to look at the causes and effects of hospital closures, which will in turn help to guide state-level policy,” Williams said. “In the end, I think we can all agree that health-care professionals, elected officials and local community organizations and people have one goal – to ensure access to quality health care for every segment of the population.”

 According to data from the Pennsylvania Health Care Cost Containment Council, between 2001 and 2005 in Pennsylvania, 20 hospitals closed, six merged and two discontinued services (such as ambulatory/outpatient and inpatient services).

 “As hospitals and health care providers explore closings and mergers as a prospective means to save money, it is imperative we ensure that critical health care services remain available to people who reside in rural and low income communities,” said state Sen. Richard A. Kasunic (D-Fayette), who chairs the Senate Policy Committee. “It is also important that we fully understand the economic impact of such closings or mergers in any potential laws that govern these actions.”

 The manner of providing health care has evolved over time from what was once a service rooted in the community to what has become more of a big business concept. Over the years, hospitals have contributed to the quality of life in communities, as well as to the local economy. Hospitals often provide the first level of health care in a community, as well as life-sustaining jobs both directly and indirectly. Pennsylvania hospitals generate through direct and indirect employment opportunities almost $21.4 billion in total labor income throughout the Commonwealth.

 Over half a million employment opportunities exist in Pennsylvania because of hospitals. In some areas – particularly rural areas – 91 percent of the hospitals are the top three employers in the area.

 The same is true in Norristown in Sen. Williams’ district, where the Montgomery Hospital Medical Center – the community’s largest employer -- is facing closure due to a merger with another healthcare network (Einstein Healthcare Network). The merger will result in a new medical facility planned to be located in a neighboring community.

 “The Montgomery Hospital began as a charity hospital to fulfill the needs of local residents,” Williams said. “Those needs still exist today – the need for 24-hour access to emergency care, consistent and available primary care, and a place close to home for maternity care and pediatrics.”

 According to Williams, should the hospital close its doors in Norristown -- where nearly half of the population falls below the poverty line, more than a third of the residents do not have health insurance, and nearly a quarter of the population do not have personal vehicles and rely on their ability to walk or use public transportation to access care and jobs at the hospital – there is a definite concern that people will lose their lifeline to health care and jobs.

 Because of jobs and the increased flow of money within the surrounding area of the hospital, the existence of a hospital in a community equates to an increased base in tax revenues for local taxing authorities, such as occupational privilege taxes and earned income taxes. Hospitals are also thought to benefit local businesses that enjoy increased sales from the hospital, its employees and its patients and their families.

 When a hospital closes, there is a loss of jobs and the loss of tax revenue, which can jeopardize the economic stability of a community. According to the Hospital and Healthsystem Association of Pennsylvania, hospitals contribute $29.8 billion directly to the economy, $41.1 billion indirectly for an overall economic impact of $70.9 billion.

 Beyond economics, hospital closures impact patient access to health care, emergency care and acute care services. Travel time to access medical care may often increase. Research has shown that the chance of surviving a heart attack decreases an additional 1.25 percent for each extra five minutes of travel time required.

 Those who testified during today’s Policy Committee Informational Briefing were James Redmond, Senior Vice President, Legislative Services, The Hospital and Healthsystem Association of Pennsylvania (HAP);  Joseph Martin, Director of Communications and Education, Pennsylvania Healthcare Cost Containment Council (PHC4); Pastor Byron Craig of Macedonia Baptist Church, Norristown; Norristown Borough Councilwoman Rochelle Griffin Culbreath; and Whitpain Township resident Doug Seiler.