Issue link: https://beckershealthcare.uberflip.com/i/1164972
43 PRACTICE MANAGEMENT California hospital to end orthopedic services amid financial constraints: 5 things to know By Laura Dyrda K ing City, Calif.-based Mee Memo- rial Healthcare, a critical access hospital, eliminated orthopedic services due to financial difficulties. Five things to know: 1. Mee Memorial announced plans to re- duce staff and services, including ortho- pedics, on July 19. The hospital plans to discontinue staffing for its ICU and halt or- thopedic services at the hospital. 2. The change was announced after the hospital spent months reviewing and imple- menting other cost-saving measures, such as eliminating or revising operating contracts. However, these changes did not do enough to improve the hospital's financial situation. 3. Hospital CEO Michael Hutchinson blamed increasing competition and reduced Medi- care, Medi-Cal and private payer reimburse- ments as well as unreliable government funding for its financial challenges. "We have no choice but to react to lower volumes, lower reimbursement rates and to address the impacts of the transition to elec- tronic medical records," he said. "We are currently overstaffed and need to reduce our employee numbers in order to come in line with other small rural hospitals, and to ensure we are offering efficient and sustain- able care to our patients and community." 4. The hospital gave affected employees 30 days' notice, and Aug. 18 was the final day of employment for 43 members of the hospital's 353-person staff. The hospital plans to connect with other local health- care providers and employers to help em- ployees find new positions. 5. Lead orthopedic surgeon at the hospi- tal Letitia Bradford, MD, spent the past de- cade practicing there and told local news outlet KSBW8 that she wasn't given prior notice that the orthopedic program would be cut. n Oregon medical group to acquire 14-physician orthopedic practice — 3 things to know By Alan Condon P endleton, Ore.-based Praxis Medical Group acquired Desert Orthope- dics of Bend, Ore., according to The Bulletin. Three things to know: 1. PMG owns 12 medical clinics in Oregon including Eastern Oregon Ortho- paedic Surgery and Fracture Clinic, High Lakes Healthcare and Pain Manage- ment Partners. 2. Desert Orthopedics has a team of 14 orthopedic surgeons and three loca- tions in Oregon. The group offers inpatient orthopedic surgery at St. Charles Hospital in Bend, Ore. 3. The acquisition was completed Sept. 1, Dan McCarthy, regional administra- tor for PMG, told The Bulletin. n Cincinnati orthopedic group takes on PE investor, launches management services organization: 4 details By Laura Dyrda C incinnati-based Beacon Orthopaedics and Sports Medicine launched a national management services organization in partnership with private equity firm Revelstoke Capital Partners. Four things to know: 1. Beacon's management team will lead operations at the MSO and provide extensive re- sources and capabilities to support the practice's clinical operations. Beacon was found- ed in 1996 and now has eight locations in Ohio, Kentucky and Indiana. 2. Revelstoke brings additional resources and investments to the partnership, allowing Beacon to grow. e PE firm is in the middle of a multiyear effort to partner with phy- sician practices "in specialties that are well-positioned for growth and consolidation," according to Managing Director of Revelstoke Andrew Welch. 3. Proskauer Rose was legal counsel and Coker Capital Advisor was financial advisor to Beacon. McGuireWoods served as legal counsel to Revelstoke. 4. Revelstoke launched in 2013 and raised around $1.4 billion of equity since then. e company completed 57 acquisitions, including 14 platform companies and 43 add-on acquisitions. "We've been successfully focusing on our patients, delivering the best patient experience by providing instant access to high quality, affordable care. at will not change," said Beacon President Peter Cha, MD. "We see tremendous growth opportunities with this partnership by recruiting more best-in-class providers, opening new clinical facilities, expanding our patient care and business support services and aligning with market leading provider groups." n