.jpg)
by Tom Coombe
Ely-Bloomenson Community dodged a major bullet Tuesday, when the federal government reversed its plans to take away its Critical Access Hospital designation.
Less than 24 hours after a television news report claimed that EBCH was at risk of closing if its long-held CAH status was taken away, hospital officials got welcome news from the Centers for Medicare and Medicaid Services.
Patti Banks, the hospital’s CEO, sprung the news to local officials at a local ambulance joint powers meeting.
“Our redesignation from urban to rural, so we could continue to maintain our designation, was granted before I arrived,” said Banks.
Banks said the agency reversed course after an appeal from EBCH, which was aided both by U.S. Rep. Pete Stauber (R) and State Sen. Grant Hauschild (D) and State Rep. Roger Skraba (R).
Banks said she was thankful for “the help and support of legislators who understand the needs of rural health and put a fire under CMS.”
CAH designation allows for EBCH to claim larger reimbursement rates from federal health programs, because of its rural location and lack of proximity to other hospitals. The next closest hospitals to Ely are roughly an hour away in Virginia, Aurora and Cook.
In a news release issued before the federal reversal, Stauber said “Not only is the decision to take away the Ely-Bloomenson Community Hospital’s Critical Access Hospital designation based on a technicality that is not accurate, but it would do significant harm to the Ely community. Without this designation, hospital operations will be impacted, and many residents of this community will be forced to travel long distances to receive care. Our rural communities deserve better, so I will continue to apply pressure on CMS to ensure this decision is reversed.”
Both of the area’s state lawmakers also went to bat for the Ely hospital, which in addition to serving health care needs is one of the region’s largest employers, with 122 total personnel and 109 full-time equivalents.
“Rural hospitals face an array of challenges that make federal support and funding essential,” said Hauschild. “Without this designation, their ability to deliver high-quality care is jeopardized, threatening the health of thousands of Minnesotans.”
Last month, EBCH was informed by CMS that the hospital is now located in an area that is no longer considered rural. Due to an increase in population in the City of Duluth, St. Louis County is now considered an urban county, which prompted the change in Ely’s designation.
But Ely hospital officials and lawmakers argued the switch does not reflect the reality of the community that EBCH serves, which has a population under 15,000 people.
Banks said “there were at least four other hospitals in the area” who received similar notification.
“By any definition, these hospitals are in rural communities serving populations spread across the region,” said Rep. Skraba. “Their role as the only health care option for thousands of Minnesotans cannot be overstated - which is why their reclassification is necessary and urgently required.”
The initial report that EBCH’s future was in jeopardy sent shockwaves through the community, particularly in the wake of recent growth in surgical procedures
The hospital posted a net operating loss of $258,838 on just over $32.1 million in revenues in the last fiscal year, but overall the Ely Health and Hospital Foundation grew its assets and reduced its debt load.
