Premier Health will close one of its Dayton, Ohio-based hospitals and consolidate its services with those of another nearby facility in a strategic campaign to control cost, the system announced.
As a result, Good Samaritan Hospital's Philadelphia Drive location will shutter toward the end of the year, with its services shifting to Miami Valley Hospital, situated about five miles away. In addition to controlling costs, the move is designed to maintain residents' access to care and minimize disruptions for staff.
The health system said it made the decision "partly in response to the changing national and local dynamics of healthcare."
That dynamic made it unsustainable for Premier to operate two hospitals within five miles of each other, particularly since each hospital currently operates at about half capacity. The system cited "the changing face of Dayton" as another reason for the consolidation.
Good Samaritan currently employs more than 2,000 people, and Premier has stated its intention to keep those employees within the health system. For those who choose to leave, it will offer voluntary retirement and other programs.
According to the Dayton Daily News, Premier officials said it would take at least $90 million of investment to keep Good Samaritan up to code over the next 10 years. The system expects to save $7 to $8 million annually through the consolidation. Premier plans on tearing down the building and donating about $10 million to redevelop the property.
The consolidation is part of a broader 2020 strategic plan. The plan calls for continued investment in higher acuity services and critical programs at Atrium Medical Center in nearby Middletown, Ohio.
Additionally, in the central part of the service area, Premier has moved forward with a previously announced Phase 3 plan to expand Good Samaritan North Health Center, including the addition of 46 inpatient beds, along with elective orthopedic joint and spine services, to be completed later this year.
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Email the writer: jeff.lagasse@himssmedia.com