The not-for-profit health system says it will 'transition' out of acute care services by the end of 2018 and focus on population health, outpatient services, and removing barriers to care access.
Providence Health System will close its money-losing 283-bed hospital in the District of Columbia by the end of this year, and realign itself toward outpatient and population health services, the health system announced this week.
"We know that 15% of a person's life is spent in actual healthcare, which means the remaining 85% is spent in other areas that either positively or negatively impact their overall well-being," Providence CEO Keith Vander Kolk said in a media release.
"That is where the greatest opportunity to make meaningful change lies, and we must put our focus and energy on advancing a model of transformation that will serve the District in new and lasting ways," he said.
Not-for-profit Providence, which is owned by St. Louis-based Ascension, said its "new community-focused perspective" will look to enhance care coordination, telehealth/virtual care, primary and urgent care, home care, community-based behavioral healthcare, and senior care.
The closure of the Northeast D.C. hospital comes nearly a year after Providence announced plans to create an integrated "Health Village to encompass more than traditional healthcare services" and follows a national care delivery trend that focuses on access and preventive measures.
"While the acute-care mission of Providence has been so important and appreciated for over a century, Providence has also been known for adapting to the changing health needs of the community," said Sister Carol Keehan, DC, CEO of the Catholic Health Association of the United States.
"Changing its focus to providing preventive health and wellness in collaboration with the community marks a new phase in its commitment," Keehan said.
The Washington Business Journal reported that hospital revenues were $240.6 million in fiscal 2016, up from $239.2 million in 2015. The system reported an operating loss of $23 million in 2016, and a $9.7 million loss in fiscal 2015.
The hospital had 11,279 inpatient admissions, 105,537 outpatient visits and 41,465 emergency room visits in 2015.
The hospital was established in 1861 at the start of the Civil War by the Daughters of Charity.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
The closure of the hospital comes nearly a year after Providence announced plans to create an integrated "Health Village" at the campus.
Providence's new focus will emphasize care coordination, telehealth, primary and urgent care, and home and senior care.
The hospital posted operating losses of $23 million in 2016 and $9.7 million in 2015.