Hospital within a Hospital Success in California
With healthcare in flux, the challenges and scarcity of receiving reimbursements have become a horrendous effort for healthcare providers. However burdensome, this issue has created opportunities for the healthcare industry to look at new ways of generating income. Some of these opportunities are found in developing partnerships between hospitals and specialized healthcare providers, i.e., pediatric, cancer, rehab, long-term acute care (LTAC), etc. Due to CMS reimbursement criteria, a specialty hospital must maintain its own separate license within the host hospital. Unlike in most states, California has resisted allowing the Hospital within a Hospital (HwH) model to take hold. The challenge for California providers was with Title 22 requiring eight basic services to be part of every licensed facility, even if the “host” license was within a general acute care hospital already licensed to offer those services. The requirement for dual licenses would result in the duplication of medical, nursing, surgical, anesthesia, laboratory, radiology, pharmacy and dietary services.
With the team effort of Vibra Healthcare’s Kentfield Hospital, Dignity Health’s St. Mary’s Medical Center San Francisco, Promise Hospital of East Los Angeles (PHELA), Silver Lake Medical Center, Capital Partners Sacramento, the California Department of Public Health (CDPH) and Puchlik Design Associates, we successfully obtained approval to allow the HwH model at two different medical campuses. We accomplished this by negotiating with CDPH and easing the restrictions for the eight basic services. The two HwH approved medical facilities are:
- Kentfield Hospital San Francisco Campus at St. Mary’s
Vibra’s Kentfield Hospital’s 30-40 beds LTAC expansion to the sixth floor of Dignity Health’s St. Mary’s Medical Center San Francisco.
- PHELA at Silver Lake Medical Center
Promise Hospital of East Los Angeles’ LTAC relocation of 32-34 licensed LTAC beds to the eighth floor of Silver Lake Medical Center.
Vibra Kentfield Hospital San Francisco Campus at St. Mary’s Medical Center is complete and in operation since July 2016. Promise Hospital of East Los Angeles at Silver Lake Medical Center has obtained OSPHD approval.
Puchlik Design Associates is currently underway developing a third HwH that places a Rehabilitation Hospital within a Long Term Acute Care Facility. Now approved by CDPH, we look forward to the completion of another successful HwH project.
Special thanks to Ann Gors, Division President at Vibra Healthcare; Hope Levy-Biehlm of Hooper, Lundy & Bookman PC; and Kathryn Scott of Capitol Partners for the vision to make this happen.
For more information regarding evaluating HwH / LTACH opportunities, please contact our office at (626) 304-9215 or email Gerald Puchlik or Michelle Ferial Asadies – firstname.lastname@example.org or email@example.com.