DETROIT - Henry Ford Health System announced today that it will close its Warren hospital March 31 with intent to convert the facility, with a partner, into a Midwest destination site for advanced inpatient and outpatient rehabilitation services.
Henry Ford Health System is pursuing plans to work with a nationally recognized organization in this specialty. The new facility would further strengthen southeast Michigan’s position as a premier health provider. A request for proposal will be issued to rehabilitation organizations next month.
The new rehabilitation center could open within the next 12 to 18 months at the Warren hospital.
Although Henry Ford Health System financial performance has remained strong, the Warren hospital has lost more than $70 million over the last five years. Market share during this period has been between 4 and 6 percent, with inpatient occupancy rates consistently averaging below 50 percent at the 203-bed hospital.
Return on investment has been negatively impacted by the economic climate in southeast Michigan, declining reimbursement and uncompensated care. The decision was also based on the availability of other hospitals in the market area, and Henry Ford Health System’s commitment to both financial stewardship and appropriate patient access throughout southeast Michigan.
Recognizing the impact the decision will have on patients, community members, employees and physicians, Henry Ford Health System will:
- Notify existing and former patients of the availability of health resources within the System and community, of medical records access and of care transition plans.
- Place as many of the approximately 700 full- and part-time hospital employees into open positions within Henry Ford Health System facilities, and provide financial and job placement support to those not reassigned.
- Continue to offer a wide range of primary care, specialty and community outreach services in the Warren area through our physician offices and medical centers.
- Encourage patients and others in the community who have questions or comments to visit HenryFordMacomb.com/WarrenPatients, or call 800-532-2411.
“The improvements in quality and service availability, as well as aggressive expense management and increased efficiencies at Henry Ford Macomb Hospital – Warren Campus have been tremendous,” says Barbara Rossmann, CEO of Henry Ford Macomb Hospitals.
“In fact, despite financial losses at Warren, these improvements made this decision particularly difficult. While it saddens me, I am very proud that we are listening to the community and responding to evolving market needs, while maintaining our financial stewardship.
“Our Warren community has shown that it appreciates and responds to our outreach initiatives and our highly regarded rehabilitation program. We are realigning our services to meet these needs.”
“Henry Ford is committed to transferring as many affected employees as possible into open positions,” says Bob Riney, president and COO of Henry Ford Health System. “Hiring external candidates has been put on hold, and the Warren staff will be given top priority for transferring into the 800+ open positions within Henry Ford. We expect to successfully place the majority of our employees.”
“Research from The Health Care Advisory Board indicates, with population aging and other health status factors, the market for inpatient rehabilitation will grow by 12 percent in five years and 26 percent in 10 years,” Riney says.
Henry Ford Macomb Hospital – Warren opened in 1966 as Bi-County Community Hospital.