LT Acute Care Hospital In Rush Limbaugh's Hometown Closes - Medicare Changes, Medicare Advantage Among Reasons Why

[hatrack]

Landmark Hospital of Cape Girardeau (Mo.), a long-term acute care facility, has shared plans to close “in the coming weeks,” according to a Sept. 10 news release. The hospital has been open since early 2006 and is part of Cape Girardeau-based Landmark Holdings of Florida, which operates six long-term acute care hospitals across the U.S. The hospital operator sought Chapter 11 protection in early March and plans to find buyers for its facilities to relieve mounting financial challenges.

“Regrettably, closure is unavoidable due to insufficient qualifying patient volumes in the current U.S. healthcare environment,” the release said. “Small and rural markets like Cape Girardeau are particularly vulnerable, with specialty hospitals facing reduced referrals from local facilities amid broader industry challenges.”

Landmark pointed to factors like the reinstatement of stricter Medicare admission rules post-public health emergency, the rapid Medicare Advantage plan expansions with narrower coverage criteria, patient offset to larger markets nearby and rising costs that outpace reimbursements.

EDIT

https://www.beckershospitalreview.com/finance/missouri-hospital-to-close-cites-unstable-healthcare-environment/

EDIT

The key factors contributing to this decision include:

1. Reinstatement of Medicare Admission Criteria Post-Public Health Emergency (PHE): Following the PHE's end in May 2023, the Centers for Medicare & Medicaid Services (CMS) reinstated stricter LTACH admission requirements that had been waived during the pandemic. This includes the prerequisite of at least three midnights in a critical care unit at a short-term acute care hospital for patients to qualify for full LTACH reimbursement, disqualifying many previously eligible cases, such as those involving severe wounds. This change, driven by efforts to control Medicare spending rather than clinical needs, has limited patient access to LTACH services. Landmark has advocated vigorously for legislative relief through industry groups and direct engagement with Congress, but proposed bills to restore broader eligibility have not passed, introducing ongoing uncertainty.

2. Growth of Medicare Advantage Plans: A significant shift is underway, with many seniors opting for privatized Medicare Advantage plans from insurers like UnitedHealthcare and Humana for potentially lower out-of-pocket costs. These plans apply distinct screening and preauthorization criteria, often denying LTACH admissions that would be approved under traditional Medicare, further reducing patient inflows.

3. Patient Outward Migration: Despite strong local physicians, many Cape Girardeau residents seek initial care in larger markets like St. Louis. Repatriating these patients for post-acute care is increasingly difficult, compounded by Medicare Advantage preauthorization requirements and regional healthcare dynamics.

4. Escalating Operational Costs: Inflation has driven up expenses for labor, supplies, and contracted services, while Medicare and insurance reimbursements have failed to keep pace. Despite rigorous cost controls, these imbalances have resulted in unsustainable daily financial losses.

EDIT

https://www.landmarkhospitals.com/press

[gab13by13]

1. I'm pretty sure Medicare hasn't changed, yet.

The long term care for Covid was done on a temporary basis, I believe, because so many Covid victims required long term care.

Medicare Advantage plans have always been a scam to gut Medicare.

[hatrack]

2. True, but a year and change isn't much time for hospitals . . .

As I understand it, they're routinely making staffing and spending decisions 3 or 4 years in advance.

IOW, the "Gee, Republicans are so clever for waiting until after the mid-terms for the fucking of Medicare to kick in!!" talking point is already evaporating like spit on a hot sidewalk.

[Silent Type]

3. Unfortunately, that hospital -- like many -- have been on verge of closing for years.