Am I Next? Facility closing - Post Acute Specialty Hospital Greenfield, Wisconsin.

Post Acute Specialty Hospital of Milwaukee has announced that it will be permanently closing their 62-bed facility in Greenfield, Wisconsin. According to a WARN notice filed with the State of Wisconsin, there will be 172 layoffs, which includes 35 administrative positions, 114 clinical services positions, 8 maintenance positions, and 15 dietary positions.

According to the company, the decision was “largely related to dramatic changes designed to substantially limit the type of patients who could be treated in long-term acute hospitals.” The facility is owned and operated by Enola, Pennsylvania-based Post Acute Medical, LLC which operates a network of operates a network of specialty and rehabilitation facilities across eight states.

In long term acute care facilities, patients receive specialized medical care after spending time in an acute care hospital but require continued longer-term care than that usually provided by the hospital. In an effort to reduce the costs of healthcare, critics of LTAC (Long Term Acute Care) facilities claim that they are not a medical necessity and argue that patients can receive equal or better care in SNFs (Skilled Nursing Facilities) or by better utilization of home health care agencies. So, it should come as no surprise that insurance companies, Medicare, Medicaid, and state-paid programs would seek lower-cost solutions.

For those interested in the latest trend of changing the payment models for LTACs which will surely result in more closures and layoffs, you may wish to read Working Paper 24946, Long Term Care Hospitals: A Case Study in Waste, published by the National Bureau of Economic Research.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?