By Joyce Kryszak
Buffalo, NY – Two Western New York health care facilities will consolidate services to save money and possibly fend off the state's right-sizing commission.
Sheehan Memorial Hospital and the Grace Manor nursing facility Wednesday announced a partial merger of management and patient services, beginning in January. A recently completed restructuring study found the two organizations can save nearly $500,000 the first year alone by consolidating. June Hoeflich, Sheehan board chair, says the collaboration was born of necessity.
"The purpose of this was not only to make the organizations stronger, but to certainly save over 400 jobs for the Buffalo community, and to provide more and better services to a populations that is, basically, under-served," said Hoeflich.
Officials say the idea of a merger was underway before the state's commission was created to right-size health care. The commission is reviewing facilities across the state, including Western New York, and is expected to recommend some hospitals be closed. Sheehan Chief Executive Officer Sheila Kee says the collaboration does come at good time.
"Probably in a couple of months we'll be asked to come and state our case in front of the regional commission," said Kee. "And this is something that certainly we are proud of, and will be very happy to highlight."
She says they have already decommissioned sixty beds to improve efficiency. A new joint pharmacy opened yesterday. And both facilities will soon share personnel in finance, human resources, IT and purchasing. Radiology, lab and other services will also be consolidated. But Kee says the main reason for the collaboration is the east side's community health crisis.
"We have the highest death rates in nine out of 19 mortality rate indicators - -the highest of any town, village, city in the entire New York state," said Kee. "This is tragic. This is a health care crisis that, unfortunately, has gone neglected."
Plans also call for the eventual creation of a not-for-profit board to oversee strategic planning for the two independently managed facilities.