In a move designed to save money for the state without diminishing behavioral health care in the region, a Florida-based company on Monday signed agreements to take over operation of Southeast Louisiana Hospital near Mandeville, a state psychiatric facility that has been fixture on the north shore for 60 years. Under the agreement, the state department of Health and...
In a move designed to save money for the state without diminishing behavioral health care in the region, a Florida-based company on Monday signed agreements to take over operation of Southeast Louisiana Hospital near Mandeville, a state psychiatric facility that has been fixture on the north shore for 60 years. Under the agreement, the state department of Health and Hospitals will give St. Tammany Parish authority to manage all property at Southeast and has signed an agreement to allow Meridian Behavioral Healthcare of Gainesville to operate 58 psychiatric inpatient beds: 42 for youths and 16 for adults. A separate agreement between the parish and Meridian allows the health care company to operate the 58 beds on the Southeast campus.
From left to right, Wesley Mason, Meridian Behavioral Healthcare CEO; St. Tammany Parish President Pat Brister; and Bruce Greenstein, DHH secretary sign agreement Monday turning operation of Southeast Louisiana Hospital over to Meridian. The agreements allow the current outpatient and group home services providers on the Southeast campus to remain in operation there. DHH will cease all management of the mental health facility on Jan. 1, 2013, and Meridian will begin operating those beds the next day.
The state is currently finalizing agreements with two other providers in New Orleans - Community Care Hospital and River Oaks Hospital - to expand existing bed capacity in the region. Community Care Hospital will operate eight beds for adults and River Oaks will operate eight youth beds at their facilities beginning Jan. 2, according to the DHH.
"This is a solution that continues to provide necessary services to this parish and the north shore, as well as keeps hundreds of jobs in this community," St. Tammany Parish President Pat Brister said. "This is a great thing for St. Tammany Parish, but in the end the patients and families of those that desperately need those services will benefit most."
Catching many local officials by surprise, DHH announced in July that it would close the hospital, which had 94 in-patient beds earlier this year. DHH officials, grappling with reductions in federal money for Medicare, believe the closure will save $1.6 million this fiscal year and $3.5 million in subsequent years. The state health department has said it wants to ensure a sustainable behavioral care system for the future by de-emphasizing the role of large public institutions and instead building partnerships with community providers.
The announcement prompted a strong backlash from local officials, hospital staff members and patients' families. The immediate formation of the Committee to Save Southeast Louisiana Hospital helped stoke the issue, with the group holding public rallies at the hospital and at the business offices of local legislators. As recently as last week, sign wavers were in front of SELH trying to call attention to the plight of the facility.
In an effort to solve the issue, parish officials and local legislators began to study the option of privatizing the hospital. This fall, DHH sought proposals from companies interested in taking over the facility and in November the state identified Meridian as its favorite. Since then, the company has been working with the state and parish on the agreements that were signed Monday at the St Tammany Parish Council chambers before a host of elected officials and community leaders.
"Our commitment has always been to maintain services through this transition, and this agreement is a perfect example of our ability to work closely with local officials and other partners to deliver health care services more efficiently and better tailored to that community's needs," DHH Secretary Bruce Greenstein said. "With local governance and Meridian's expertise, we are confident that this will be a smooth transition and better pathway for sustainable mental health services in the area."
Officials acknowledged the agreement is the first of its kind for the company and the state but expressed confidence it's a model that will save money for the state and maintain a high level of care for patients.
Wesley Mason, Meridian's CEO, said his company will implement many of the same programs that proved to be successful under the current management of the hospital. He said the company has been in operation about a year, but has staffers who have vast experience in treatment of the mentally ill. Now that the agreements have been reached, "it's time for us to do our jobs," he said.
Mason said Meridian will give hiring preferences to current SELH employees where comparable jobs are available, and has already begun conducting interviews. In its heyday, the hospital employed more than 500 people. Future staffing numbers for the facility were not mentioned.
Kathy Kliebert, DHH deputy secretary, said the state currently spends $828 per patient each day to operate the hospital. Under the new agreement, which builds in efficiencies that are not feasible in government operations, the state expects to that figure to drop to $581 a day. She said with the new three-year agreement in place, DHH will closely monitor operations at the hospital.
Not everyone is on board with the new arrangement. Mary Engel, a nursing administrator who has worked at SELH for 21 years, said she is concerned that Meridian has been in business for only a year. "They're biting off something pretty big here," she said.
Derrick Morrison, a member of the committee formed to save the hospital, said Monday members of the group plan to meet Saturday to discuss the matter and to delve into the details of the agreement. He said the committee would also push for a public hearing where citizens and interested parties could learn more about the future of the hospital.
Many local and state officials were on hand for the signing of the agreements Monday, and applauded the signing, which took place in front of a line of news cameras.
State Sen. Jack Donahue, R-Mandeville, who was heavily involved in the privatization effort, said the agreements will maintain a vital part of the north shore economy. "I'm pleased with this outcome, which keeps the hospital open, keeps jobs in our parish and is a better value for the tax payers."