Wednesday, November 16, 2011

Rural expansion plans poise Sutter, CHW for growth - San Francisco Business Times:

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is opening a small surgica l hospital in Yuba Citynext month, a firs for the company as it boosts services in outlying areas. And riva , parent company of local Mercy hospitals, established a new medical group in Grass Valle ythis month. Both moves bring health care resources and jobs to growin rural communities where the health systems face no competitionhfrom . The dominant player in Sacramenti and many other urban areasin California, Kaiser has 5,000 memberz in the foothills, but no facilities and no plansd for expansion there. Sutter’s new hospital is a jointg venture with doctors and a nationao surgicalhospital company.
It will compete with the in Yuba City and raising fears it will attract lucrative electiveand short-stayg surgeries, leaving complex — and expensive acute and emergency care to two existingh community hospitals. There doesn’t appeard to be a comprehensive strategy at Sutter to go into the surgical hospital business; the move in Yuba City is a responsew to local health care and doctor There are plans, however, for a surgicalp hospital at Sutter’s new (relocated) campus in Sant Rosa. It will be jointly owned with locakl physicians.
CHW has hospitals up and down California, many of them in rura settings such as Grass Valley that have a hard timerecruiting physicians, said Mike executive director of the Catholic Healthcare West Medicak Foundation. Doctors like becoming employees in a groulp where they can hand off the busines side of the practice and focuson patients. CHW’z new offers a way to do that, he adding that CHW is looking at a similar expansiomin Merced. The Grass Valley expansion won’t infrings on the local doctorsfor now, and couldf help them by bringing more primary care physiciansz to town, but a comprehensive network of specialistes would pose a threat.
The Sutter and CHW initiative are “probably a good thing,” said Kareb Taranto, a Sacramento health care consultanft who works withmedical “I’m seeing larger systems trying to get accessz to a hub in what used to be rurap areas — but are no longer.” $5.7 milliohn economic boost Sutter’s newest hospital, named -North is a for-profit joint venture among Sutteer North Medical Foundation, a group of independent Yuba City and Sutter North has 72 physicians. It owns 51 percentt of the $40 million, 46,000-square-foot hospital. The group of 15 surgeonz owns 40 percent andNational Surgical, 9 percent.
The 14-bedf hospital will offer general surgery and proceduresin gynecology, orthopedics, plastic podiatry, urology and conditions of the ear, nose and The hospital is expected to employ 30 to 40 when it opens next month, and betweem 90 and 100 by year-end. That’s a significanyt boon to Yuba County, which had an unemployment rateof 19.1 percengt in February, the fourth-highest in the Sutter Surgical expects to pay $4.1 million in salariesx and benefits in the firsgt year of operation. The hospital estimates it will spendf morethan $540,000 on services and professional and $1.1 million in supplies annually.
Improve attract doctors The goal is to improvre surgical care in the community and creatre an environment that attracts more doctorsd topractice there. “Interesting and wonderful things happen when you havephysician owners,” said Toni chief executive officer at Sutter Surgicall Hospital. “When they (it becomes) part of them.” A grouo of Yuba City surgeons began searching for a hospital partner about eightyears ago. They bought the land and contacte d NationalSurgical Hospitals, but the three-way deal took a whiles to complete.
Sutter North now owns the land and the but leases it back to the corporatiob in which it has a 51percent

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