Navigant Recommendations Would Drive Newark Residents Out of City for Care

Navigant Recommendations Would Drive Newark Residents Out of City for Care

05-07-2015

Navigant Recommendations Would Drive Newark Residents Out of City for Care

New analysis by Saint Michael’s Medical Center identifies flaws in state-commissioned report

Newark, N.J. – Saint Michael’s Medical Center today released a second round of findings concerning the state-commissioned report by Navigant Consulting recommending the consolidation and closing of healthcare facilities in Newark. According to the supplemental report, thousands of Newark residents would be forced to seek hospital care outside of the city if the flawed recommendations were to be enacted. In Navigant’s own words, these patients would be “redistributed” out of the city.

“We believe that this further examination of Navigant’s projections makes clear that Navigant’s vision would spell healthcare disaster for the people of Newark,” said David A. Ricci, president and CEO of Saint Michael’s Medical Center.

In April, Saint Michael’s issued its initial response to the Navigant recommendations, citing the recommendations’ potential to create a “healthcare monopoly,” leading to as much as $180 million in increased prices for hospital care in Newark. The supplemental report assesses, in greater detail, both the impact on patient access within the city limits and the further increase in healthcare costs that would result from Navigant’s recommendations.

The findings of the supplemental report include the following:

  • The Navigant recommendations would affect healthcare capacity so dramatically that thousands of Newark residents who now use Newark hospitals would be forced to seek patient care outside the city.
  • The Navigant recommendations would result in substantially overall higher costs to the healthcare system by recommending a shift from lower-cost facilities to higher-cost facilities.
  • The Navigant projections are riddled with errors, and completely ignore most of the costs involved in implementing its recommendations.

“The only way to ensure access to care and to limit healthcare costs in Newark is for the state to promptly approve the acquisition of Saint Michael’s Medical Center by Prime Healthcare,” said Ricci. “It is time for the state to reject these flawed Navigant findings and to seek a solution that represents the best interests of the people of Newark.” The supplemental report can be viewed here.

The report was authored by David Ettinger, an antitrust lawyer who has worked in the healthcare field for more than 35 years, and Dennis Pettigrew, Saint Michael’s Medical Center’s Chief Operating Officer and Chief Financial Officer.

About Saint Michael’s Medical Center

Established by the Franciscan Sisters of the Poor in 1867, Saint Michael’s is a 357-bed regional tertiary-care, teaching, and research center in the heart of Newark’s business and educational district. Saint Michael’s Medical Center is currently a member of Trinity Health. Learn more at www.smmcnj.org.

About Prime Healthcare

Prime Healthcare is a national hospital system with 34 acute-care hospitals providing more than 35,000 jobs in 11 states. Based in California and one of the largest hospital systems in the country, Prime Healthcare is committed to ensuring access to quality healthcare. Learn more at www.primehealthcare.com.

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