HHS rescues inner-city hospital as outpatient clinic - Outpatient Connection

Healthcare Purchasing News, Sept, 2002

Health and Human Services Secretary Tommy G. Thompson recently announced the departments approval of a Missouri plan to rescue an inner-city hospital from complete closure so that it can continue to serve outpatients through the state's Medicaid program.

The approval will allow the state to receive about $17 million in federal Medicaid funding to expand access to outpatient services through a regional funding authority. A portion of the funds will support the continued operation of ConnectCare as it transitions from an inpatient to outpatient facility, according to HHS. Last year, the hospital, which is located in St. Louis, received 52,000 outpatient visits. As part of the agreement, the hospital will close the six inpatient beds it currently operates.

The initiative is a component of Missouri's broader healthcare reform demonstration, "Managed Care Plus (MC )." The plan will focus on making the St. Louis healthcare system cost-effective and self-sustaining. The program will serve those who are eligible for Medicaid and those who lack insurance altogether, according to the federal agency.