Becker's Hospital Review

11 CFO / FINANCE Minnesota AG looking into Mayo Clinic's bill collection practices By Andrew Cass T he Minnesota Attorney General's Office is seeking more information about Rochester-based Mayo Clinic's "apparent aggressive bill-collection conduct," the Post Bulletin reported Dec. 15. The office is seeking more information after the news outlet released a report in November about the hospital suing low-income patients for unpaid medical bills, according to the outlet. A spokesperson for the attorney general's office told the outlet that the practices detailed in the report are "alarming" and the office has asked Mayo for more information. The Post Bulletin stated it interviewed 20 patients sued by Mayo for unpaid bills and determined that 14 could have qualified for charity care. All but one were forced to pay their bills in full after they were sued. Most said they were unaware charity care was an option. A Mayo Clinic spokesperson provided the following statement to Becker's: "We are responding to the attorney general's request and welcome the opportunity to provide an accurate and complete picture of our billing and collection practices. We are confident that our response will demonstrate that financial assistance is an important part of Mayo Clinic's relationship with patients and is shared with them at points before, during and after care is provided." n IU Health updates scope of $2.3B hospital project By Andrew Cass I ndianapolis-based Indiana University Health's board of directors has approved the proposal to increase the size of its downtown hospital and expanded medical campus project. e hospital now calls for 864 private patients beds, up from the previously planned 672, according to a Jan. 9 news release from the health system. e board said the larger capacity is needed to meet projected inpatient demand, including for a growing caseload of sicker patients. e budgeted construction cost of the new hospital is now $2.31 billion, according to the release. e updated budget reflects a more than 20 percent rise in construction costs since the project was first budgeted as well as the health system's commitment to expand the hospital to serve the state's needs. e cost of support buildings, infrastructure and other expenditures on the expanded 44-acre campus and neighboring properties is projected at an additional $1.98 billion, according to the release. Support buildings include medical offices, parking garages and logistics space. e hospital is now expected to open in the fourth quarter of 2027, according to the release. e new date reflects the longer timetable needed to construct the larger building in the midst of a skilled labor shortage. e project will combine the operations of IU Methodist and University hospitals upon its opening, according to the release. e new hospital is estimated to save $50 million a year in operating costs through consolidating the two large acute-care hospitals eliminating many duplicate services. n Tenet to sell California hospital By Molly Gamble J ohn Muir Health has entered into a definitive agreement with Tenet Healthcare to acquire sole ownership of San Ramon (Calif.) Regional Medical Center. Walnut Creek, Calif.-based John Muir Health has held a 49 percent stake in the 123-bed hospital since 2013. Under the new agreement, it will acquire the remaining 51 percent interest from Dallas-based Tenet for approximately $142.5 million, according to a John Muir Health news release shared with Becker's. The addition of San Ramon Regional Medical Center would make nonprofit John Muir Health a four-hospital system. It currently operates 554-bed John Muir Health Walnut Creek Medical Center, 244-bed John Muir Health Concord (Calif.) Medical Center and a 73-bed psychiatric hospital in Concord. Mike Thomas, president and CEO of John Muir Health, said the addition of San Ramon Regional Medical Center would help the system allocate fixed costs over a broader scope of operations. "We're excited about this potential acquisition," Mr. Thomas said in the release. "At the same time, we will continue to make investments in current John Muir Health people, programs and services. We view this as a long-term opportunity to expand our services and better serve the growing populations in the San Ramon Valley and Tri-Valley." The transaction is subject to FTC review and various closing conditions. n

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