WED AM News: HSHS leader slamming Baldwin bill related to hospital closures; Officials announce more managed care options for south-central WI

August 7, 2024

— The head of Hospital Sisters Health System is slamming a bill from U.S. Sen. Tammy Baldwin, arguing the restrictions and requirements it would place on health care systems are “not feasible.”

HSHS President and CEO Damond Boatwright made the comments in response to the Madison Dem introducing a bill last month that would require hospital systems that are closing to notify federal officials and ensure ongoing access to care.

“I am encouraged attention is being paid to the dire situation facing nonprofit rural community hospitals like ours,” Boatwright wrote. “Yet, requiring more onerous regulation or mandating that community hospital systems maintain comprehensive services while sustaining millions of dollars in financial losses is not feasible.”

The Hospital Stability and Health Services, or HSHS Act, was announced after Hospital Sisters Health System closed hospitals in Eau Claire and Chippewa Falls earlier this year along with other clinics in the region. Soon after, Gov. Tony Evers declared his support for Baldwin’s bill.

The move to shut down the HSHS hospitals raised concerns around health care access for local communities, and Evers slammed the Illinois-based health system at the time for blindsiding workers and his administration by abruptly announcing the closures.

In announcing the bill, Baldwin also said HSHS gave “little to no notice” for patients, leaving some Wisconsin patients with no options for critical care. Under the bill, hospitals that plan to close or end services would need to notify the U.S. Department of Health and Human Services at least 90 days earlier, among other requirements.

Boatwright says HSHS and other nonprofit community hospital operators are working in an “increasingly complex and challenging health care environment,” arguing HSHS pursued “all possible strategies” to sustain health services for the communities where it operates.

“We have cut expenses despite rising inflation, increased efficiencies and sought to attract and retain experienced nurses amid a historical labor shortage,” he wrote.

He highlights a broader trend of rural hospital challenges, pointing to a report from the nonprofit Center for Healthcare Quality and Payment Reform that found 700 rural U.S. hospitals were in danger of closing. To protect rural care, he argues “we must find solutions” that address regulatory complexities, reimbursement challenges, rising operating costs, “unnecessary” competition for patients and other hurdles.

“These are the factors that create the troubling circumstances in which hospitals have no other option but to discontinue core services or to close,” he wrote.

See his full statement on the bill.

— State health officials have announced more managed care organization options for members of the Family Care and Family Care Partnership programs in south central Wisconsin.

The state’s Family Care program provides long-term care to state residents who are older or who have a disability, while the Partnership program combines health care and other long-term support services in home and community settings.

Starting next year, nearly 8,000 members of these programs will be able to choose between four managed care organizations operating in Adams, Columbia, Dane, Dodge, Green Lake, Jefferson, Marquette, Rock and Waushara counties. Two such organizations are currently available in those areas, according to the release.

The four MCO options beginning in January 2025 include: Community Care, Inc.; Inclusa; Lakeland Care, Inc.; and Molina Healthcare of Wisconsin, Inc. These expanded options are being provided under a five-year plan aimed at improving quality and access for Wisconsin’s long-term care options.

“We’re giving Wisconsin Medicaid members more choices to find the care that’s best for them,” Wisconsin Medicaid Director Bill Hanna said in a statement. “Our Family Care and Partnership programs provide crucial care and support to help Wisconsinites live their best lives in their homes and communities.”

Gov. Tony Evers last month announced he’s directing the state Department of Health Services to use $258 million in COVID-19 funding to boost wages for direct care workers and providers serving older adults and those with disabilities.

See the release.

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— Federal officials have approved Wisconsin’s initial proposal for more than $1 billion from the federal Broadband, Equity, Access and Deployment program.

The National Telecommunications and Information Administration yesterday announced it had approved the state’s funding proposal under BEAD, part of the Bipartisan Infrastructure Law. It supports efforts to expand high-speed internet access throughout the country.

The state Public Service Commission says it will now begin the subgranting process, starting with the first letter of intent phase. This will evaluate BEAD funding applicants for “technical, financial, operation and managerial capacity,” helping the PSC understand applicants’ ability to comply with program requirements and standards. The deadline is Oct. 1, according to PSC documents.

Following that process, “eligible and qualified” applicants will be invited to join the project application phase later this year, the PSC said in an email update.

PSC Chair Summer Strand says the state is “prepared and well-positioned for these next steps” as it begins the program’s implementation phase.

“We look forward to continuing our work with NTIA and other stakeholders to administer these historic investments responsibly and transparently, bringing us one step closer to Internet for All in Wisconsin,” she said in a statement.

NTIA Administrator Alan Davidson congratulated the Wisconsin Broadband Office for creating a “strong proposal” for directing BEAD funding.

“Today, Wisconsin can move their Internet for All efforts from planning to action,” Davidson said in a statement.

See the NTIA release.

— Gov. Tony Evers has announced $200 million in Bipartisan Infrastructure Law funding for more than 150 local road and bridge projects.

The state Department of Transportation will administer the funding through the Surface Transportation Program, according to yesterday’s release.

“I ran for governor promising to fix the darn roads,” Evers said in the release. After improving more than 7,400 miles of roads these past five years, today I’m excited we’re going to be able to continue building upon this important work.”

See the release.

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