Consultants are recommending that three money-losing hospital in New Jersey -- Newark Beth Israel Medical Center, East Orange General Hospital, University Hospital and Saint Michael’s Medical Center -- should become ambulatory care centers before financial losses topple the institutions.
The recommendation, dubbed the Greater Newark Healthcare Services Evaluation, was presented March 2 to the New Jersey Health Care Facilities Financing Authority and focused on the financial health of five hospitals: Newark Beth Israel, East Orange General, Clara Maass Medical Center, University Hospital and St. Michael’s.
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Navigant Consulting in its report said there is an excess of 224 hospital beds at the five area hospitals. And under current conditions, operating losses for the five hospitals studied would total $190 million in 2019, according to Navigant.
If the proposed changes are implemented, the five hospitals would see a profit of $64 million in 2019, the report stated.
The status quo is not a viable option, the consultants said.
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Their recommendations are based on healthcare requirements, the trend and population need for more outpatient services and the current financial and physical condition of the five hospitals studied.
University Hospital would be expanded into a state-of-the-art regional medical center. University Hospital and Clara Maass Medical Center would remain inpatient hospitals.
The recommendations also call for a large capital investment of $1 billion, with much of that going to University Hospital.
Pediatrics and cardiovascular services would be consolidated at Newark Beth Israel, they recommended.
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