2023 Discharge Delays Cost Minnesota Hospitals $497M

The Minnesota Hospital Association (MHA) recently released 2023 patient care survey data showing persistent, ongoing delays in discharges from Minnesota hospital emergency departments and inpatient care. These delays translated into tens of thousands of days of unnecessary hospital-level patient care and nearly half a billion dollars in financial loses. “Minnesota hospitals have gone from being a safety net, to being a catch-all for patient care,” said MHA CEO and president Dr. Rahul Koranne. “This is a function they were never intended for, can’t afford, and isn’t good for patients. This gridlock is preventing Minnesotans from getting care that their lives depend on. Policy makers must act.” The survey of 101 hospitals corroborates similar data from the Minnesota Department of Human Services and the combined data translate to 1 in 6 days of hospital care, or in total nearly 195,000 days, as being unnecessary and unpaid.

Reasons for discharge delays include patients stuck in hospital beds waiting for transfers to nursing homes, rehabilitation units, mental health treatment facilities and other sub-acute care facilities. The survey also found hospitals provided 9,223 unnecessary days of emergency department stays, often people stuck waiting for inpatient care or simply brought to a hospital for lack of any alternative. This unsustainable level of unpaid care is a root cause of financial distress for hospitals all over the country, combined with payers that don’t cover the full costs of care, and fast-rising costs. In the first half of 2023, an alarming 67% of Minnesota hospitals reported operating losses. Koranne noted the Minnesota Department of Health has already had three hearings on hospital service closures in January – half of the total for all of last year in Minnesota. “We are at a critical point,” Koranne said. “Our hospitals are facing immense financial pressure. We need real and immediate financial assistance from the legislature in the coming weeks to prevent further service or facility closures and to ensure access to quality health care for all Minnesotans.” 

DHS Assisted Living Report Card Goes Live

The Minnesota Department of Human Services (DHS) recently launched its new Assisted Living Report Card that provides a valuable resource to consumers seeking assisted living residences, offering comparative ratings based on resident and family surveys, as well as ratings based on state inspections. Modeled after Minnesota’s Nursing Home Report Card, the Assisted Living Report Card will deliver useful information to help make decisions about assisted living. Close to 63,000 Minnesotans live in more than 2,200 licensed assisted living facilities across the state. The new web-based tool was in development for almost four years before its launch and is a work in progress. The Assisted Living Report Card currently features ratings for about 20% of the state’s assisted living facilities – focusing on the largest facilities, which are home to almost half of all Minnesotans who use assisted living. The report card will expand early next year, adding more facilities and ratings based on the Minnesota Department of Health’s licensing surveys and investigations. “Looking for an assisted living residence for yourself or a loved one can be stressful and challenging,” said DHS commissioner Jodi Harpstead. “We hope that this tool will help people make this important choice, recognizing that there are many factors to consider.” Authorized by Governor Tim Walz and the 2019 Legislature, the Assisted Living Report Card was developed through a partnership among the Minnesota Department of Human Services, the Minnesota Board on Aging and the Department of Health. Dr. Tetyana Shippee, at the University of Minnesota School of Public Health, led research and development of the quality measures. “I am grateful for the opportunity to collaborate with the state to build this resource for consumers,” said Shippee. “Minnesota once again is leading in pioneering a data-driven, evidence-informed tool for consumers seeking assisted living options.” Assisted living is licensed and regulated by the Minnesota Department of Health. The Assisted Living Report Card is managed by DHS and the Minnesota Board on Aging, which also conducts the resident and family surveys. The quality measures developed by the University of Minnesota School of Public Health are based on state data and calculated into the report card measures.

Fairview and U of M Reshape Partnership 

Fairview Health Services, the University of Minnesota and University of Minnesota Physicians have recently agreed to reshape their long-standing partnership. The organizations have signed a Letter of Intent (LOI) outlining the university’s intent to purchase the four key academic health facilities that make up the M Health Fairview University of Minnesota Medical Center — the East and West Bank campuses, M Health Fairview Masonic Children’s Hospital, and the M Health Fairview Clinics and Surgery Center. The university aims to complete the full purchase of these facilities by Dec. 31, 2027. “We are grateful for the collaboration and shared successes we have experienced with Fairview Health Services over the years — M Health Fairview patients and all Minnesotans are better off because of the work of our talented teams,” said University of Minnesota Interim President Jeff Ettinger. “We also agree we will need to step up in new and different ways for the future health of our state. This LOI, and the discussions ahead of us, are critical steps toward more fully integrating education, research and patient care to better serve Minnesotans statewide.” This strategic decision aligns with the University of Minnesota’s public mission of advancing the health of all Minnesotans by ensuring high-quality and innovative care, teaching the state’s future healthcare workforce, and supporting discoveries that will inform and enhance patient care. “This is a critical first step toward a new and reimagined relationship that will better meet the current and future needs of our patients and our community,” said Fairview Health Services President and CEO James Hereford. “Our patients and our employees, who contribute significantly to our success, will remain the heart of our organizations. Today’s announcement is designed to provide clarity on our collaborative path forward.” Last year, the University of Minnesota announced its desire to purchase the four academic health facilities on and around the Twin Cities campus from Fairview Health Services as part of its five-point plan for the future of academic health. The decision to sell the academic facilities to the University of Minnesota is in support of that vision for their future. Fairview Health Services leaders are excited about the opportunities that lie ahead and remain committed to the mission of making a positive impact on the health and well-being of the community.