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Changes resisted at Caritas Carney
(May 2008 Issue)

By Nan Shnitzler

A report commissioned by the Massachusetts Attorney General has recommended that Caritas Carney Hospital in Dorchester reposition itself from an acute care hospital to a mental health center. Carney has been the weak fiscal link in the six-hospital Caritas Christi healthcare system, owned by the Catholic Archdiocese of Boston, and has depended on legislative subsidies to stay afloat.

The Attorney General's office is the public watchdog over the Commonwealth's non-profit charitable hospitals and Caritas has been of particular concern. Operating margins are too slim to support capital improvements and it failed to partner with either of two suitors last year. The report is a way to pinpoint why, says AG spokesman Harry Pierre.

The report, prepared by Philadelphia-based Health Strategies & Solutions, Inc., also recommended that Caritas St. Elizabeth's Medical Center in Brighton transition to a community teaching hospital and that the archdiocese relinquish system control to an independent board with healthcare operations expertise. The report suggested that Carney could restore its viability if it cut underutilized services and beefed up specialty ones. Carney's medical-surgical market share declined between 2004 and 2006 in favor of Boston Medical Center and Quincy Hospital, but some community health centers cite Carney's behavioral health services as the reason they send patients there. "Carney should consider the feasibility of transitioning to a behavioral health services facility while retaining selected primary care, urgent care and diagnostic services," the report states.

Pierre says the report was advisory and it would be up to Carney and the Caritas system to evaluate all the inputs and take action. To that end, Caritas hired Wellspring Partners to take a more in-depth look at Carney. The results were due at the end of April.

Carney officials are acutely aware of the problems. At the end of March, they cut 55 jobs at the 197-bed hospital.

"We looked at the report and said tell us something we don't know," says Carney spokeswoman Margaret Carr.

Carr characterizes the layoffs as a smart business move to align staffing levels with patient volumes and says that no direct care personnel were let go in psychiatric services. She denies that Carney continues to be a financial drain on the Caritas system and says it recently posted a profit.

"We're actually moving in the right direction," she says. Carney provides mental health and substance abuse services in 44 beds and on an outpatient basis. It's one of the few Boston providers with an adolescent unit, Carr says. The hospital is looking closely at psychiatric services as well as its other offerings to see what makes sense in the current health care climate, but certain changes are off the table.

"Our initial reaction is we don't think it makes sense for psychiatric services only," Carr says. "The community has a need for an acute care hospital and we will remain an acute care community hospital."

The report points out at least one thing everyone can agree with, that psychiatric services are extraordinarily important, says Bill Walczak, chief executive officer of Codman Square Health Center. But he thinks the report missed Carney's significance to its constituency of several hundred thousand residents as a low cost alternative to downtown teaching hospitals.

"These 115 beds occupied on any given day are vitally important to our corner of the city," Walczak says.

Despite the market equation, that medical-surgical beds are abundant and psychiatric beds are scarce, Walczak doesn't think Carney can sustain itself on psychiatric beds alone.

The broader debate, Walczak says, has been whether Carney should stay in business at all. So while the AG report did not recommend closure, community health advocates still take every opportunity to trumpet the importance of their neighborhood hospital.

"We're saying we have to look at the system as a whole rather than this market based ideology," Walczak says. "We need the government to step in to make sure a system of care serves our region of Boston. We think a rational system of care would include a full-service Carney Hospital."