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Thursday, November 21, 2024

Fairview Health Systems implement structural changes following $163 million revenue loss

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Fairview Health Systems is shuttering 16 of its Minnesota and Wisconsin locations and shifting to an ambulatory care model at its remaining 40 plus clinics and primary care centers. | Pixabay

Fairview Health Systems is shuttering 16 of its Minnesota and Wisconsin locations and shifting to an ambulatory care model at its remaining 40 plus clinics and primary care centers. | Pixabay

After losing $163 million in the first six months of 2020, Fairview Health Systems announced significant changes to its operating structure.

Sixteen primary care clinics, 14 in Minnesota and two in Wisconsin, will close as of Friday, Dec. 4. Approximately 900 positions will be cut, slightly less than 3% of Fairview's workforce.

“Our health system is taking several important steps forward to realize our bold vision to bring breakthrough care to more people, and to address the financial challenges all healthcare systems, including ours, are facing,” James Hereford, Fairview president and CEO, said in a statement, according to The Center Square. “The changes announced today are steps toward the transformation we need to meet the needs of our community now and into the future. While we must address our financial challenges, ultimately this is about ensuring our future as a thriving and innovative health system; one dedicated to helping and healing patients. To improve health outcomes and experience for our patients, we must be willing to do things differently.”

Bethesda Hospital will be leased to Ramsey County to help address the homelessness situation. COVID patients currently at Bethesda will be moved to St. Joseph's Hospital. St. Joseph's will become a "community hub" since it is located near two emergency centers. Inpatient mental health services will continue at St. Joseph's through 2021. Fairview's new model will be based on ambulatory care delivered through health "hubs" at more than 40 clinics and primary care locations.

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