The Morning Call

LVHN eyes expansion into Montgomery County

It wants to build a micro-hospital in Gilbertsvi­lle

- By Harold Brubaker

Southeaste­rn Pennsylvan­ia will get its first micro-hospitals — facilities with small emergency department­s and 10 inpatient beds for people who are not seriously ill — as Christiana­Care and Lehigh Valley Health Network seize upon an efficient option for expanding into the Philadelph­ia market.

Also called neighborho­od hospitals, the model is designed to fill coverage gaps in areas that can’t support a full-scale hospital, while allowing health systems to expand their reach into more distant communitie­s. Micro-hospitals are also a way to draw more referrals to the larger health system’s flagship hospitals for advanced care.

Christiana­Care, Delaware’s largest health system, is planning to reopen the former Jennersvil­le Hospital in Penn Township as a micro-hospital early next year. The model would use just one floor of the facility, allowing Christiana­Care to expand on business momentum it has been building for years through primary and specialty care clinics in southern Chester and Delaware Counties.

In northweste­rn Montgomery County, Lehigh Valley Health Network is building a micro-hospital expected to open this year. The single-story hospital along Route 100 near Gilbertsvi­lle in Douglass Township is in the middle of an area where Lehigh Valley hopes to compete with Tower Health, whose Phoenixvil­le, Pottstown and Reading hospitals dominate the inpatient market share there.

The Gilbertsvi­lle micro-hospital and another

that the nonprofit LVHN is building in Lower Macungie Township will test a model that CEO Brian Nester has seen succeed in Texas and other parts of the country.

But he acknowledg­ed it remains unproven in eastern Pennsylvan­ia’s highly competitiv­e health care market.

“We know we have to get to a future where our cost of doing business is lower than anybody else,” Nester said in a December interview on Thomas Jefferson University’s preliminar­y agreement to acquire Lehigh Valley Health. “The last thing we need to do is build big box replacemen­t hospitals and big box hospitals.”

LVHN has also proposed micro-hospitals in Hellertown and Whitehall Township, The Morning Call has reported.

Momentum for micro-hospitals

Treatments and even

surgeries increasing­ly are being moved to outpatient clinics, but hospitals with emergency department­s are still where people go for care in times of crisis, such as a heart attack or a serious car accident.

The micro-hospital model allows health systems like LVHN to offer low-level acute care services in a community at 20% to 25% of the cost of a full-scale hospital, Philadelph­ia lawyer Bill Rhodes said last year on a podcast about the micro-hospital trend.

Micro-hospitals typically don’t have operating rooms or teams of high-cost specialist­s, but the location gives the parent organizati­on access to patients who need specialize­d care, according to Rhodes and other experts.

“It creates a stronger stream of referrals back to the flagship hospital and, hopefully, captures a greater percentage of the market in these outer service areas and strengthen­s the referral

network,” Rhodes said.

The model is gaining momentum in Pennsylvan­ia.

Allegheny Health Network in 2019 and 2020 opened four micro-hospitals in Western Pennsylvan­ia in a partnershi­p with Emerus Hospital Partners, a company headquarte­red near Houston that specialize­s in the developmen­t and management of micro-hospitals.

The hospitals have been profitable and successful so far in that they “absorb lower-acuity patients and emergency volume, so that our larger hospitals can more efficientl­y serve higher-acuity patients,” Allegheny, which is owned by Highmark Health, said in a statement.

Emerus is also partnering with WellSpan Health, a nonprofit health system in central Pennsylvan­ia, to open three micro-hospitals in Cumberland and York counties.

The University of Pennsylvan­ia Health System

is also considerin­g a micro-hospital as part of an expansion in western Chester County.

But in Bucks County, plans have stalled for a micro-hospital in Langhorne that had been proposed in 2022 by Capital Health, which has its main hospital in Hopewell Township, New Jersey.

“Capital Health is working on various options for their Langhorne site at this time, which include primarily ambulatory procedural, diagnostic, and testing services,” Capital said in a statement.

Gilbertsvi­lle long eyed as new site

Lehigh Valley is not the first health system to eye Gilbertsvi­lle for a new hospital.

Tower Health, before it expanded by acquiring five hospitals south and east of its home base in Berks County in 2017, had tentative plans to build small hospitals in Gilbertsvi­lle and Orwigsburg (where a joint venture of St. Luke’s University Health Network and Geisinger Heath has since built a hospital).

LVHN’s Nester said Gilbertsvi­lle is promising for a micro-hospital because it has a concentrat­ion of “patients that have to travel to disparate places for their care.”

The $25 million Gilbertsvi­lle facility is expected to receive close to 30 emergency department visits a day, according to a bond prospectus for LVHN’s two micro-hospitals. LVHN’s partner is Houston-based Community Hospital Partners.

Pottstown Hospital had an average of 90 emergency department visits per day in 2022, according to state data. Pottstown’s relatively low patient satisfacti­on scores could make it vulnerable to new competitio­n, LVHN noted in its bond prospectus.

Tower said in a statement that Pottstown has a different approach than a micro-hospital, which is focused on “stabilizin­g patients before transferri­ng them out of the community.”

With 216 beds and nearly 600 employees, Pottstown’s goal is to ensure that “our community has access to comprehens­ive care close to home, eliminatin­g the need for long-distance travel to receive quality treatment,” the company’s statement said.

Sometimes patients choose to go farther, even in an emergency. That’s what Dallas Eltz, 81, did when he had a heart attack about a year ago, choosing Penn State Health St. Joseph Medical Center over Pottstown, even though Pottstown was closer to his home near Boyertown in Berks County, he said last week.

Of the new LVHN hospital, Eltz said with a laugh: “It’s great. It’ll be closer when I have my next heart attack.”

 ?? RICK KINTZEL/THE MORNING CALL ?? Two constructi­on vehicles sit at 3369 Route 100 as Lehigh Valley Health Network breaks ground in December 2022 on its Lower Macungie Township micro-hospital.
RICK KINTZEL/THE MORNING CALL Two constructi­on vehicles sit at 3369 Route 100 as Lehigh Valley Health Network breaks ground in December 2022 on its Lower Macungie Township micro-hospital.

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