Navigating the Fast-Paced Evolution of Healthcare: Insights from the Editor

Times Observer file photo: Hospital CEO Rick Allen at the Warren General Hospital annual meeting for 2024.

AHN Westfield Memorial Hospital in Chautauqua County has big plans. They want to become a rural emergency hospital. This change could greatly impact healthcare in the area and set a trend for rural hospitals across the country.

This new status will allow Westfield to shift from being a small, inpatient facility to a hospital focused on 24/7 emergency, observation, and outpatient care. Rodney Buchanan, the administrator, believes that this designation is perfect for the hospital. Most services they provide are outpatient, which means this model better fits the community’s needs.

Congress created the rural emergency hospital designation in December 2020. This was in response to numerous hospital closures in rural areas. The goal is to keep essential healthcare services available. Many small hospitals simply can’t survive in today’s environment, leading to loss of access for rural communities.

According to research, many rural hospitals are struggling. From 2010 to 2023, 148 rural hospitals either shut down or converted their services. A report from 2020 warned that over 450 rural hospitals were financially risky.

In contrast, Warren General Hospital is faring better, although it had a $1.5 million loss in 2023. Yet, it reported a $1.6 million surplus in 2022, down from $7.9 million the year before. Warren General is independently run, focusing on building a strong foundation in healthcare with Allegheny Health Network and LECOM Health. This partnership is helping them upgrade services and technology.

Warren General has 87 beds, serving a population of about 40,000. Westfield, on the other hand, has only four inpatient beds and serves around 29,000 residents. This size difference shows the varying roles these hospitals play in their communities.

After Westfield fully affiliates with Allegheny Health Network, its financial information will merge with the larger parent company. While their operations have been steady, the recent financial performance of Allegheny raises questions. In fiscal 2023, they reported a loss of $173 million, slightly better than the previous year’s $181 million loss. UPMC, connected to the Jamestown hospital, also reported significant losses.

For Westfield, becoming a rural emergency hospital means more reliable funding, ensuring they can serve their patients effectively. This designation also opens up access to federal funds and higher reimbursement rates from Medicare, promoting long-term care stability.

“Maintaining a full inpatient unit is expensive, especially given our patient volume,” Buchanan said. “Transitioning allows us to focus resources on programs that truly benefit our community,” he added.

Once designated, rural emergency hospitals can only keep patients for 24 hours unless special circumstances arise. Most patients will be transferred to nearby facilities like AHN Saint Vincent, which has been a partner for nearly 20 years.

The healthcare landscape in Chautauqua County is complex. Major entities like AHN, UPMC, and Kaleida are all part of this mix, each offering different services and contributing to local healthcare improvement. For example, Brooks-TLC is collaborating with Kaleida to build a new hospital with modern technology, signaling progress in the area.

No one can predict what healthcare will look like in the next decade. Westfield’s potential conversion is part of a broader shift happening across the U.S. It’s a change worth following closely.

John D’Agostino is the editor of the Times Observer, The Post-Journal, and OBSERVER in Dunkirk, N.Y. You can reach him at jdagostino@observertoday.com.