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    Op-Ed
    Friday, April 26, 2024

    Lawrence + Memorial Hospital needs better management, not a bailout

    Lawrence + Memorial Hospital administrators have been making the rounds, threatening to slash vital health care services that patients and their families in our community depend on. The rhetoric is in response to legislative and budget proposals opposed by top executives with the network that operates the acute care facility.

    Instead of pitching in to cover more of their fair share to support their host community, L+M’s administration wants local taxpayers to subsidize what amounts to a bailout. According to The Day, L+M Corporation’s William A. Stanley warned of “layoffs and cuts in services” if a bill reforming the state’s property tax system was to pass (“Mental health care proposals keep hospitals, agencies watchful”, March 18).

    It would be irresponsible for hospital administrators to hold patient care hostage to their political agenda even if their fiscal outcomes were solely a result of public policies. The reality is that L+M administrators are responsible for their own financial mismanagement and their shameful attempt to cover it up cannot be allowed to stand.

    Between 2011 and 2013, L+M Hospital has transferred more than $50 million to L+M Corp. to subsidize losses incurred by its outpatient facilities. The main campus during this period averaged an annual operating margin of nearly 7 percent, a healthy “profit” in comparison to other acute care facilities in Connecticut. Currently, the Connecticut Hospital Association (CHA) recommends a margin of 3.5 percent, but after the corporation siphoned off revenues, L+M’s average annual operating margin has fallen to less than 2 percent.

    Despite such large losses, L+M Corp. has nearly doubled investment in the outpatient facilities that form L+M Medical Group (LMMG). Operating margins have produced losses that have exceeded 50 percent.

    The size and consistency of LMMG’s fiscal failure should at the very least call into question L+M administrators’ reliance on such an unsound business model. Instead, administrators apparently intend to double down on shifting patient care dollars to keep LMMG on life support at our community hospital’s expense.

    If L+M’s corporate lobbying attempts prevail, this adverse outcome will take place in part on the taxpayer’s dime.

    At the same time, administrative costs are diverting resources away from patient care and account for an ever-larger share of total expenses at L+M Corp. From 2008 to 2013, these costs increased at twice the rate of health care service expenses. If their share of total costs had remained stable during this period, L+M would have had $13 million more available for patient care in 2013 alone.

    Instead of being honest about their own financial mismanagement as the cause of their declining fiscal health, L+M’s administration has resorted to threatening our community. Instead of acknowledging that the parasitic LMMG is rapidly consuming our century-old hospital’s resources, L+M’s administration is using its lobbying power to extort a publicly-funded bailout.

    L+M’s published mission and values — which we as caregivers take to heart — include “accountability,” “respect,” and “stewardship.” On all three counts, L+M’s administration fails. They continue to tell lawmakers and the public that our hospital’s poor health is not the result of their own poor choices.

    Our patients and their families deserve quality care they can depend on from the region’s largest health care network. As caregivers, we deserve leadership that is honest and forthright regarding their financial situation, not one that resorts to intimidation and diversion tactics.

    This article was authored by Lisa D’Abrosca, an L+M Hospital registered nurse (RN) and president of L&M Hospital Nurses, AFT Local 5049; Stephanie Johnson, an L+M Hospital registered sleep lab technologist and president of L&M Hospital LPN/Techs, AFT Local 5051; and Harry Rodriguez, an L+M Hospital certified health unit coordinator and president of L&M Healthcare Workers AFT Local 5123. Collectively, the union leaders represent over 1,600 of the acute care facility’s caregivers.

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