October 04, 1999
Mayor Williams Accepts direction from Health Care Commission
Regarding Future Investment in Greater Southeast Community Hospital
At a community meeting in Southeast, Mayor Anthony A. Williams announced his decision to accept the recommendation of the Health Care Systems Development Commission, which said the city should invest in expanded health care for its most vulnerable residents and not in continued support for Greater Southeast Community Hospital. The Commission stated:
"The District of Columbia and the Health Care Systems Development Commission are committed to meeting the health care needs of our residents. We must use our health care resources to enhance primary care services east of the Anacostia River and improve coverage. A viable offer from a private institution to support continued operations at Greater Southeast Community Hospital exists."
On Saturday, the Mayor called an emergency session of the newly appointed Health Care System Development Commission this weekend. (List of Commission members attached.) During the two hour session, Commissioners reviewed the city's support for the hospital to date, discussed the financial investment by the city needed to continue to keep the private health care institution open and examined the impact on the community should the judge order liquidation of the Hospital this week.
"I believe all District residents deserve access to quality and affordable health care services regardless of where they live or their ability to pay," said Mayor Williams. "As the city has worked with the Board of Directors of Greater Southeast this past seven months, I have set two fundamental principles. We must protect health care needs of patients, especially those living in the community surrounding the hospital. At the same time, we must invest city resources responsibly."
Mayor Williams -- in consultation with City Council Chairman Linda Cropp and Councilmember Sandy Allen; Control Board members Alice Rivlin and Gene Kinlow; and the Health Care Systems Development Commission -- believes that a viable offer from a private health care institution exists and could prevent the closure of the hospital.
"Bringing in an outside health provider to explore options for keeping a medical facility operating at Greater Southeast is the best approach to expanding the availability of quality and affordable health care for residents in southeast," said Chairman Cropp.
Despite the District's extensive efforts to assist the Board of Directors of Greater Southeast, the Hospital continues to face significant financial crisis. A bankruptcy judge may order liquidation at request of creditors as early as this Tuesday.
"The City is moving in a new direction to provide access to health care for all citizens," said Councilmember Sandy Allen. "As Councilmember for Ward 8, I am concerned by the possible closing of Greater Southeast Community Hospital, but I do support the work the city is doing to ensure quality health care for all people, especially those who need it most."
While the city's leadership believes that there are viable alternatives to the closure of Greater Southeast Hospital, it has prepared a closure plan should it be needed.. The closure plan is lead by Dr. Ivan Walks, Director of Health for city. The plan would:
- Transfer of patients and their records to other health care facilities;
- Develop, with WMATA, expanded transportation so community residents can access other health care facilities;
- Provide job placement and counseling to employees that live in District through DOES;
- Develop economic development plan for area immediate surrounding hospital to assure that property is quickly returned to service to community. Multi-agency task force will be lead by Deputy Mayor for Economic Development and will work closely with community leaders.
Dr. Walks is working with Public Benefits Corp. and other health care providers to identify health facilities available to serve residents and will work with community to communicate the location of these facilities to residents.
District's Support for Greater Southeast Community Hospital
- At the end of May, the City entered into a partnership agreement with Greater Southeast Board of Directors to provide up to $8.5 million over 90 days to allow time for Board to identify solutions to financial crisis; city pledged support of turnaround experts.
- In June, City advanced $2.5 million in Medicaid funds.
- In July, City provided $3.1 million from Community Development Block Grant funds.
- In August, City provided $3.0 million loan, conditional on the Hospital agreeing to bring in firm or consultant to manage facility. Intensive Resource Group, a firm known for turning around financially troubled institutions, came on board to manager Greater Southeast.
- Despite significant levels of support, the Board of Directors of Greater Southeast, consistently refused to reduce overhead or make the difficult decision needed to work with potential financial partners.
- The continued mismanagement of the financial crisis of Greater Southeast is causing the institutions potential liquidation. The Board of Directors is responsible for possible closure of Greater Southeast Community Hospital.
