Saving a Hospital
The District will have to absorb the cost of preserving Greater Southeast.

Sunday, September 23, 2007

THE D.C. government will have to dig deep in its pockets for $79 million to keep Greater Southeast Hospital open and running. Even then, there's no guarantee of success. It's clear, though, that the city is right to do what it must to preserve and enhance health care for those who live east of the Anacostia River.

Mayor Adrian M. Fenty (D) is proposing entering into a public-private partnership with a New England-based company that wants to buy the ailing hospital. The deal, which must be approved by the D.C. Council, would have the city use part of its tobacco settlement money to support Specialty Hospitals of America's purchase. Specialty is proposing a full-service hospital that council member David A. Catania (I-At Large), chairman of the health committee, says would be "equal to or better" than any hospital in the city. The deal negotiated by Mr. Fenty involves a substantial amount of public money, but it is better than the first proposal presented to the city. Gone is Specialty's demand that an estimated $12 million in Medicaid debt from the operation of its two existing hospitals be forgiven. It's also significant that Specialty will repay $49 million of the District's investment -- and not through the illusory means of free medical care. The city has larded the agreement with performance measures.

Part of the reason for the current crisis is that the District believed the empty promises of the current owner, Envision Hospital Corp. If there is anything maddening about the deal being contemplated, it's that Envision is able to walk away with $10 million after so mismanaging operations that the hospital is on the brink of financial failure. Nonetheless, city officials are right to want to hasten the sale before failure becomes irreversible.

The prospect of no hospital east of the river is unacceptable. Consider that more than 30,000 people go to Greater Southeast's emergency room per year. If this vital service is be saved, the city will have to strike a deal with Specialty.