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At the Intersection of Health, Health Care and Policy
doi: 10.1377/hlthaff.2014.0136
, 33, no.12 (2014):2162-2169Health Affairs
2012−And Consolidations, 1997
Lessons For Providers And Hospitals From Philadelphia's Obstetric Services Closures
Scott A. Lorch, Ashley E. Martin, Richa Ranade, Sindhu K. Srinivas and David Grande
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By Scott A. Lorch, Ashley E. Martin, Richa Ranade, Sindhu K. Srinivas, and David Grande
Lessons For Providers And
Hospitals From Philadelphia’s
Obstetric Services Closures And
Consolidations, 1997–2012
ABSTRACT The Affordable Care Act is triggering an increase in hospital
consolidation and mergers. How other hospitals respond to these
disruptions in supply could influence patient outcomes. We examined the
experience of Philadelphia County, Pennsylvania (coterminous with the
city of Philadelphia), where thirteen of nineteen hospital obstetric units
closed between 1997 and 2012. Between October 2011 and January 2012
we interviewed twenty-three key informants from eleven hospitals (six
urban and five suburban) whose obstetric units remained open, to
understand how the large number of closures affected their operations.
Informants reported having confronted numerous challenges as a result
of the obstetric unit closures, including sharp surges in delivery volume
and an increase in the proportion of patients with public insurance or no
insurance. Informants reported adopting a number of strategies, such as
innovative staffing models, to cope with the added demand brought
about by the closure of nearby obstetric units. Informants emphasized
that interhospital communication could mitigate closures’ stresses on the
health care system. Our study supports the need for policy makers to
anticipate reductions in supply and monitor patient outcomes.
D
uring the past thirty years the
number of hospital consolida-
tions, closures, and mergers has
fluctuated, with a spike in the
mid-1990s that coincided with
an increase in managed care insurance plans.1
Hospital consolidations, closures, and mergers
have accelerated since the passage of the Afford-
able Care Act (ACA): An average of 89–98 merg-
ers per year were reported between 2011 and
2013, compared to an average of 30–60 mergers
per year between 2002 and 2010.1–5
Studies have shown that these consolidations
may affect prices charged to consumers6–8
for
hospital services and increase racial/ethnic and
income disparities in access to various health
care services.9
The impact of these consolida-
tions on patient health is less clear. One study
showed negative effects for patients with acute
time-sensitive conditions such as acute myocar-
dial infarction and trauma.10
Other studies
showed improved outcomes, perhaps because
higher delivery volumes improved health care
providers’ comfort in dealing with sick in-
fants 11,12
or improved the coordination of care.1
There are more than four million births annu-
ally in the United States, and childbirth is the
leading reason why women ages 18–44 are hos-
pitalized in the country.13
Thus, ensuring ade-
quate access to obstetric health care is an impor-
tant public health issue.
We examined the case of Philadelphia County,
Pennsylvania (which is coterminous with thecity
of Philadelphia). In that county, between 1997
and 2012, thirteen of nineteen obstetric units
stopped providing obstetric services. These clo-
doi: 10.1377/hlthaff.2014.0136
HEALTH AFFAIRS 33,
NO. 12 (2014): 2162–2169
©2014 Project HOPE—
The People-to-People Health
Foundation, Inc.
Scott A. Lorch (lorch@email
.chop.edu) is an associate
professor of pediatrics at the
Children’s Hospital of
Philadelphia, in Pennsylvania.
Ashley E. Martin is project
manager in the Center for
Outcomes Research, Children’s
Hospital of Philadelphia.
Richa Ranade is a research
assistant in the Center for
Outcomes Research, Children’s
Hospital of Philadelphia.
Sindhu K. Srinivas is an
assistant professor of
obstetrics and gynecology at
the University of
Pennsylvania, in Philadelphia.
David Grande is an assistant
professor of medicine at the
University of Pennsylvania.
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sures resulted in a reduction in the number of
available obstetric beds in the county by approx-
imately 50 percent. Hospital obstetric units that
remained open in the region experienced an av-
erage increase in delivery volume of 57.7 percent
during the same period (calculated from data in
Exhibit 1), according to birth certificate records
and the Maternity Care Coalition.14
These
changes occurred with no real change in the total
number of deliveries in the five-county Philadel-
phia region in the same time period.
This degree of obstetric unit closures was larg-
er than that experienced by any other metropoli-
tan area. However, the trend is consistent with
the results of one previous study showing that
California hospitals often eliminate obstetric
units when they reduce services.15
The Philadel-
phia County hospitals that closed obstetric units
tended to have smaller delivery volumes, to have
no academic affiliation or obstetrics training
program, and to be located in the northeastern
or northwestern areas of the county.16
The closures of Philadelphia obstetric units
were initially associated with an increase in neo-
natal mortality, but that abated over time.16
The
sustained reductions in obstetric units in Phila-
delphia and the observed adverse outcomes pro-
vide an opportunity to understand more broadly
how hospitals respond to closures of nearby clin-
ical units or entire hospitals, regardless of the
reason for the closure. This is an important issue
for any community or public health department.
We conducted a qualitative study of key in-
formants involved in obstetrical care in Philadel-
phia to answer several questions. First, what is
the perceived effect of an acute reduction in ob-
stetric care services on the hospitals that remain
open? Second, what changes do hospitals and
providers in remaining hospitals make in re-
sponse to changes in patterns of care? Third,
what opportunities do obstetric providers iden-
tify to mitigate the adverse effects of changes in
access to obstetric care?
We hypothesized that our informants would
consistently identify changes in delivery volume
and patient characteristics, both medical and
sociodemographic, as important challenges
with closures of obstetric units. Additionally,
we sought to understand the role that a local
public health department or a regional non-
governmental organization could play in re-
sponding to these changes.
Study Data And Methods
Subjects Between October 2011 and Janu-
ary 2012 we conducted semistructured inter-
views with twenty-three key informants at six
urban hospitals and five suburban hospitals in
the greater Philadelphia area. The obstetric units
in these hospitals were still open as of the begin-
ning of 2012 and had remained open as of Oc-
tober 2014.
The hospitals were chosen based on their loca-
tion relative to Philadelphia County and their
change in delivery volume since closures began
in 1997. This volume is reflected in the delivery
volume at each hospital between 1995 and 1996.
Thirteen informants were employed at one of the
six remaining Philadelphia County obstetric
units, and the other ten were employed at one
of five selected units in the four counties that
border Philadelphia.
To build our pool of informants, we first re-
cruited obstetric department chairpersons and
leaders of private obstetric groups that delivered
babies at the eleven study hospitals, because
these people were directly affected by the clo-
sures of obstetric units in Philadelphia County.
Then, based on their suggestions, we identified
and recruited additional clinicians at each study
hospital, including obstetricians, nurses, nurse
managers, and midwives. Each informant had
been at his or her respective hospital for at least
ten years and had been practicing obstetrics for
10–48 years.
Saturation—the point at which no new or rele-
vant information emerged from further inter-
views—was reached with a total of twenty-three
informants. There were eight chairpersons,
eight obstetricians, three nurses, three nurse
managers, and one midwife, with one or two
physicians and one or no nurse from each of
the eleven hospitals.
At the time of the interviews, tacit verbal con-
sent was obtained from each informant. The
Institutional Review Board at the Children’s Hos-
pital of Philadelphia approved all study proce-
dures. The Institutional Review Board did not
allow us to identify informants by title or hospi-
tal, because doing so would breach participants’
confidentiality and result in the identification of
the source of several quotations in the article.
Interview Methods A public health profes-
sional trained in interviewing techniques con-
ducted the in-person and telephone interviews.
Each informant chose the interview method he
or she preferred.
Each interview was digitally recorded and
lasted 30–90 minutes. The interviewer used a
semistructured open-ended interview guide that
included questions about the response of the
informant’s hospital and obstetric unit to the
closures of obstetric units in the area, the biggest
challenges faced by hospitals and obstetricians,
the impact of the closures on the financial health
of the informant’s obstetric unit, and sugges-
tions for how units that remain open can plan
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for and respond effectively to future closures.
Analysis The interviews were transcribed and
edited to remove identifying information. The
transcripts were imported into Atlas.ti, version
6.2—a qualitative data analysis software package
used for coding—and a codebook was developed
using grounded theory.17,18
Two experienced in-
dependent coders separately analyzed the data
and then compared findings to reduce the
chance of errors from coding and increase the
reliability of the themes identified in the data.
The themes presented in the Study Results
section were not chosen a priori but were devel-
oped from informants’ responses. We assessed
the reliability and validity of the analyses
through four criteria described in previous re-
search: prolonged engagement with the data,
credibility, transferability, and confirmability.19
With the exception of some minor edits to im-
prove clarity, all quotes are provided verbatim.
Limitations Our study had several limita-
tions. First, this project was not designed to as-
sess changes in patient satisfaction resulting
from closures.
Second, there are elements of the perinatal
system in Philadelphia that may occur in only
a few areas of the country, such as women receiv-
ing care at hospital clinics. These elements may
limit the generalizability of our results about the
prenatal care system to other areas where clini-
cians in private practice deliver the majority of
prenatal care.
Third, the ability of the local public health
department to intervene within the obstetric
care system that we found in Philadelphia might
not exist in other regions. Thus, they may need
other solutions, such as regional hospital collab-
orations outside of the governmental system.
Finally, because this was a qualitative study,
we could not use our results to show a causal
association between any changes in response
to the closures in Philadelphia that were made
by the obstetric units that remained open and
any change in perinatal outcomes. Nor could we
assess whether the decision to participate in this
study was related to either positive or negative
experiences surrounding the closures. However,
no informant gave information that was entirely
negative or positive during his or her interview.
Study Results
Informants generally described a severely
strained obstetric care system following the
widespread closures of units or hospitals in
the region. In most cases, informants described
the closures as happening abruptly. Other hos-
pitals “did not have a lot of warning,” one infor-
mant said, and thus each closure precipitated
immediate challenges in the remaining obstetric
units.
Several themes and subthemes emerged from
our interviews (Exhibit 2) that confirmed data
presented in Exhibit 1. First, informants identi-
fied economic challenges in obstetrics as a major
underlying reason for obstetric unit closures and
ongoing challenges within open units.
Second, informants described both acute and
chronic stresses to the system that arose from
changes in patient volume and mix, precipitated
by the closures, in the remaining obstetric units.
Informants said that they were able to adapt to
some of these stresses but not others.
Third, informants described an ad hoc re-
sponse to obstetric unit closures with little ad-
vance planning. The response was reactive,
based on changing volumes and patient mix.
Fourth, informants offered suggestions for
preventing adverse effects from future closures.
Reasons For Closures Of Obstetric Units
Our informants identified the low financial mar-
gins and high fixed costs of running obstetric
units as primary reasons for closures. “In Philly,
you get paid less, it costs more, and the liability is
higher. So ‘perfect storm’ is an overused phrase,
but it’s at least a triple whammy,” one person
said. Informants identified several unique fac-
tors related to obstetrics that led to high fixed
costs: high community malpractice rates, which
in turn reinforced the need for hospitals to em-
ploy obstetricians directly; and high overall per-
sonnel costs to run a labor and delivery floor.
Informants reported that payments did not
keep pace with these expenses. This fact was
exacerbated by the high percentage of women
with public or no insurance who had been cared
for by obstetric units immediately before they
closed (Exhibit 3), who might have had lower
reimbursement for services compared to women
with private insurance.
If hospitals are not willing or able to use other
service lines to subsidize obstetric units, the
pressure to close the units increases. As one in-
formant said, “If you don’t own the hospital and
Each closure
precipitated
immediate challenges
in the remaining
obstetric units.
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you can’t circle the finances around to support
obstetric practice, the obstetric practice is un-
sustainable.”
Acute And Chronic Stresses Resulting
From Closures Informants identified three ma-
jor challenges to obstetric units that remained
open: increased delivery volume; changes to pa-
tient mix and continuity of prenatal care; and
issues with staff morale and support (Exhibit 2).
▸INCREASED VOLUME: Consistent with data
shown in Exhibit 1, providers reported “dramat-
ically increased volumes” as the primary chal-
lenge from obstetric unit closures. Informants
did not distinguish between the closure of the
Exhibit 1
Changes In Hospitals’ Delivery Volume And Insurance Status In The Philadelphia Region, By County, 1995–2009
Deliveries Change in deliveries, 1995 to 2009 (%)
Hospital Status 1995 2009 All With public or no insurance
Bucks
A Open 1,051 1,363 29.69 247.72
B Open 1,107 1,596 44.17 61.39
C Open 1,390 1,128 −18.85 152.38
D Open 1,414 1,920 35.79 114.65
E Hospital closed 142
Chester
F Open 2,042 2,567 25.71 94.60
G Newly open —a
418 —a
—a
H Open 296 2,280 670.27 −30.76
I Open 1,209 924 −23.57 299.80
J Unit closed 760
Delaware
K Open 2,603 2,107 −19.05 447.26
L Open 1,226 1,657 35.15 987.16
M Open 814 833 2.33 199.02
N Unit closed 1,319
Montgomery
O Open 3,243 5,155 58.96 76.38
P Open 2,021 1,915 −5.24 −15.16
Q Open 1,791 2,770 54.66 746.70
R Open 1,714 2,666 55.54 57.91
S Open 674 776 15.13 309.14
T Open 773 694 −10.22 21.21
U Unit closed 812
V Unit closed 565
Philadelphia
W Open 1,507 2,932 94.56 142.10
X Open 1,597 2,081 30.31 321.58
Y Open 2,307 4,004 73.56 110.99
Z Open 3,585 4,790 33.61 268.98
AA Open 1,644 3,171 92.88 122.45
AB Open 2,340 2,174 −7.09 21.30
AC Hospital closed 476
AD Hospital closed 1,034
AE Hospital closed 967
AF Hospital closed 844
AG Hospital closed 771
AH Unit closed 655
AI Unit closed 279
AJ Unit closed 1,264
AK Unit closed 330
AL Unit closed 1,208
AM Unit closed 1,865
AN Unit closed 711
AO Unit closed 1,144
SOURCE Authors’ analysis of birth certificate records, Pennsylvania Department of Vital Statistics. NOTE Data confidentiality
agreements precluded listing hospitals by name. a
Not applicable.
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first obstetric unit and the closure of the fourth
or the thirteenth unit.
The acute pressures from a closure were exac-
erbated by two other factors: when the time be-
tween the announcement that an obstetric unit
would close and the actual closure was just a
matter of weeks; and other surges in volume that
are part of the normal practice of obstetric care.
Theincreased delivery volumesled informantsto
report that their obstetric unit “was packed to the
gills” and that “it was not uncommon to see
patients in a cubbyhole, patients outside my of-
fice.” One informant reported that “we had peo-
ple deliver in the hallway or in the bathroom.”
Increases in delivery volume, whether acute or
chronic,raised concerns about thequality of care
provided to patients.
▸CHANGES IN PATIENT MIX AND CONTINUITY
OF CARE: After the closures, obstetric units that
remained open experienced an average increase
of 216 percent in women with public or no in-
surance between 1995 and 2009 (calculated from
data in Exhibit 1). Informants confirmed these
changes to their overall patient mix, reporting “a
shift to more Medicaid patients and just in gen-
eral a more urban, poor, less insurance, late pre-
natal care” population. As a result, informants
described a greater need for support services,
including those provided by social workers.
In addition, after the closures more patients
received prenatal care at a different setting from
where they delivered their child. In Philadelphia
the majority of patients used to receive care at the
hospital clinic where they eventually delivered
their child.20
After the closures, the system of
prenatal and antenatal care was described as
“fractured.” One informant said that patients
now “get your prenatal care and then you end
up somewhere else to have a baby, and it’s not
geographically rational.”
As a result, many informants reported that “we
are seeing some people with no prenatal care.We
are seeing some people who said they had care
elsewhere and when we called elsewhere, wher-
ever that may be, they either could not locate
their record or told us that there was no care
provided there.” Care became more inefficient,
which worsened the effects of surges in delivery
volume.
▸STAFF MORALE AND SUPPORT: With in-
creases in delivery volume, new obstacles to pa-
tient care, and increased financial pressures, in-
formants reported decreases in staff morale and
enthusiasm. Changes to obstetric unit volume
resulted in people feeling that their unit was
“constantly understaffed” and that it was “not
uncommon to do three or four deliveries in a
shift…and have a two-patient assignment.”
Additionally, recruiting additional staff to
those obstetric units that remained open became
difficult. Informants believed that these recruit-
ment issues occurred because of the pressures of
seeing patients more quickly with less support,
which led to lower job satisfaction and morale.
Response To Closures By Remaining Hospi-
tals Many responses by hospitals to the chal-
lenges mentioned above were reactive rather
Exhibit 2
Themes And Subthemes In Philadelphia Region Obstetric Unit Closures, Identified By
Twenty-Three Key Informants
Reasons for closures
Liability
Poor reimbursement
Minimal finances
System stressors
Delivery volume surges
Changes to patient mix and continuity of prenatal care
Staffing challenges
Responses to closures
Structural changes
Staffing model changes
Ways to prevent adverse effects
Communication between hospitals
Regionwide protocols
SOURCE Authors’ analysis.
Exhibit 3
Percentage Of Deliveries With Public Or No Insurance At Closed Obstetric Units In The
Philadelphia Region, 1995 And Last Year Open
Deliveries with public or no insurance (%)
Hospital 1995 Last year open
E 14.8 12.3
J 16.8 52.2
N 14.3 53.4
U 4.8 11.8
V 1.9 31.7
AC 51.2 32.4
AD 23.6 13.6
AE 11.7 4.5
AF 59.6 77.7
AG 37.6 54.1
AH 15.6 49.0
AI 17.1 16.7
AJ 38.6 74.4
AK 25.4 70.0
AL 23.4 40.6
AM 5.7 29.1
AN 2.1 47.1
AO 2.5 38.9
SOURCE Authors’ analysis of birth certificate records, Pennsylvania Department of Vital Statistics.
NOTES Data confidentiality agreements precluded listing hospitals by name. See Exhibit 1 for more
details on hospitals by letter name.
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than proactive. The responses reflect two prima-
ry areas of change: structural changes to the
obstetric units and changes to the units’ staffing.
▸STRUCTURAL CHANGES: In response to deliv-
ery volume changes, there were a large number
of changes to the obstetric units that remained
open. However, these changes often occurred
months or years after the change in volume at
the hospital level, and hospitals “outgrew what
they built.” One informant recommended:
“Whatever you’re building, build it double what
you think you need.You will fill it and regret that
your units are not bigger.”
Instead of having its patients recover in labor
rooms, one hospital built “a [separate] three-bed
recovery room to focus the use of labor rooms for
active labor patients [only].” This hospital’s tri-
age area was expanded from a three-bed to a six-
bed unit: “We were actually at a point at times
that we could use more than six beds. We added
an additional ultrasound room because the OB
ultrasound volume was going up.”
Another hospital committed extra space and
modified it over the past four years. “We’ve got-
ten support from the hospital, from the admin-
istration, and the state to build three recovery
rooms.We built an antenatal testing unit [where]
we do over 12,000 tests a year, and we built a six-
bedded triage unit which we previously hadn’t
had,” an informant from this hospital explained.
▸STAFFING MODELS: Staffing increased on the
labor and delivery units. However, respondents
reported that they needed a “crystal ball, because
we didn’t really know what volume was going to
come.” This resulted in significant lag times be-
fore staffing could be permanently increased.
For some units, increased hiring was at the
level of advanced-practice professionals such as
nurse midwives, physician assistants, and nurse
practitioners. Other units put new staffing mod-
els in place because of the increased volume and
concerns about the quality of care and patient
safety. “We actually have two obstetrical pro-
viders in house 24=7, and three [in house] Mon-
day through Friday, during the day,” one infor-
mant explained.
However, the increased number of providers
often came at a cost to communication and lead-
ership. “It’s different communicating with eight
or nine people than it is [with] four people,” an
informant said. “And I think that’s something
we’re still working on. You know, how do you
get everybody to be part of the big picture? How
do you know what’s happening somewhere else
and how that’s going to impact your unit or an-
other unit?”
As with the increased delivery volume, there
were concerns that these communication chal-
lenges could affect the quality of patient care.
Preventing Adverse Effects From
Future Closures
Several informants described a severely strained
obstetric care system following the widespread
closures. Their experience with these closures
led them to identify two areas for improvement:
better communication between hospitals in ad-
vance of closures, and the development of re-
gional solutions to coordinate prenatal care and
care at the time of delivery.
Communication Between Hospitals To An-
ticipate Closures One key lesson our inform-
ants provided was that when an obstetric unit is
about to close, leaders from local or state health
departments or regional nongovernment organ-
izations need to help improve discussion with
fellow institutions and hospital leaders. “If I was
closing my maternity program, I would try to
reach out to other programs in the area and
try to have as smooth a transition as possible,”
one informant observed. “It’s a tough decision to
close a hospital, and I think hospital administra-
tors would want to work with other hospitals in
their region, and also departments should see
how we can best care for this population.”
Hospitals compete with each other for obstet-
ric patients. Thus, local and state health depart-
ments and other organizations may be needed to
facilitate discussions among hospitals to opti-
mize the transition of care for patients in the
local community and give remaining hospitals
time to adequately staff their units in prepara-
tion for potential surges in delivery volume.
Regional Ways To Facilitate Efficient And
High-Quality Care Informantsfeltthat regional
solutions were needed to address the disconnect
between where prenatal care is delivered and the
hospital where a delivery occurs. One suggested
solution was “evidence-based protocols” that
would standardize care across providers and in-
stitutions. An informant noted that “care is au-
tomatically less fragmented if everyone is using
the same protocols.”
Regional health information exchange that
would facilitate access to prenatal care informa-
tion and protocols was another solution pro-
posed to decrease the fragmentation of care.
Even though such a system of standardized pro-
tocols does not exist across hospitals in the re-
gion, several informants noted that individual
obstetric units should develop “good systems
and protocols” to manage both the increased
volume and surges in patient numbers experi-
enced by the hospitals that remained open.
Discussion
The case of obstetrical care in Philadelphia Coun-
ty highlights issues that patients and providers
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may experience when access to care decreases.
The primary challenges in Philadelphia included
sharp surges in delivery volume, changes in pa-
tient mix at individual hospitals, loss of continu-
ity between prenatal and delivery care, and lag
times of months to years before new staffing
needs could be met and bed capacity could be
increased at the hospitals that remained open.
All of these challenges contributed to concerns
about acute erosion in the quality of care.
Our informants emphasized the importance of
communication and planning when even one or
two obstetric units close.When a hospital or unit
closes without warning, there can be large-scale
effects on public health, even if the closure is
justified by the hospital’s economic health or
the number of deliveries it performed. Commu-
nication and planning will become increasingly
important with the continued hospital consoli-
dations and mergers that are expected with the
ACA’s full implementation.21
The greatest challenge identified by our in-
formants was related to delivery volume. Hospi-
tals experienced an average increase in volume
of 57.7 percent, and several county hospitals ex-
perienced increases of over 70 percent. These
volume changes were most disruptive when a
closure occurred suddenly and the remaining
providers had no warning of it.
The increased number of volume surges re-
ported by our informants parallels similar surges
in other areas, such as those caused by emergen-
cy department closures in Los Angeles,22
urban
hospital closures,23
and the routine operation of
obstetric units24
and provision of pediatric hos-
pital care.25
Similar concerns have been raised
when public health departments and hospitals
discuss the potential for mass-casualty care.26,27
Any mechanism that allows hospitals adequate
time to adjust their staffing and structural mod-
els might help minimize some of the adverse
effects of these closures.
Another challenge was that patient mix
changed at the hospitals that remained open.
They saw an increasing proportion of women
having public or no insurance who previously
had received care at hospitals that since closed.
These changes support informants’ concerns
about the financial challenges of running an ob-
stetric unit, which could result in decreased job
satisfaction by providers of obstetrical care. Pre-
vious surveys of obstetricians suggest that mal-
practice premiums are a strong driver of job
dissatisfaction28
but that job satisfaction also
declines as workloads increase and personal
control over day-to-day activities at work de-
creases.29
Potential solutions for these changes include
adding specific personnel, such as social work-
ers, to help both patients and providers adapt to
these changes. Additionally, hospitals and
health careworkersneed toensurethat theyhave
the cultural competency training to work with
changing patient populations.30
We found that the responses from informants
at urban academic centers were similar to those
from informants at community-based practices
both in Philadelphia and in the surrounding sub-
urban counties. This fact emphasizes a need for
coordination and communication across county
lines and among different hospital systems and
public health departments. There is little pub-
lished literature about such direct discussions
between hospitals that otherwise compete for
patients within a given health care market.
Obstetrics is particularly challenging because
of the time-limited nature of pregnancy. Thus,
our informants identified public health depart-
ments or other regional collaborative bodies as
potential stakeholders in both monitoring
changes in access to health care and assisting
patients and hospitals in transferring care dur-
ing pregnancy.
Conclusion
In the future, public health officials should work
to identify hospitals and specific units at risk of
closing. Furthermore, they should collaborate
with affected providers to plan for changes in
patient mix and delivery volume to ensure a
smooth transition for patients. ▪
When a hospital or
unit closes without
warning, there can be
large-scale effects on
public health, even if
the closure is
justified.
Access To Care
2168 Health Affairs December 2014 33:12
at University of Pennsylvania Library
on December 8, 2014Health Affairsbycontent.healthaffairs.orgDownloaded from
This research was presented at the
AcademyHealth Annual Research
Meeting, Boston, Massachusetts,
June 24, 2012. Funding for the research
was provided by the Agency for
Healthcare Research and Quality (Grant
No. R01HS018661).
NOTES
1 Cutler DM, Scott Morton F. Hospi-
tals, market share, and consolida-
tion. JAMA. 2013;310(18):1964–70.
2 Dafny L. Hospital industry consoli-
dation—still more to come? N Engl J
Med. 2014;370(3):198–9.
3 American Hospital Association.
Chartbook: trends affecting hospi-
tals and health systems [Internet].
Chicago (IL): AHA; [cited 2014
Oct 8]. Available from: http://www
.aha.org/research/reports/tw/
chartbook/index.shtml
4 American Hospital Association. How
hospital mergers and acquisitions
benefit communities: updated study
by the Center for Healthcare Eco-
nomics and Policy [Internet]. Chi-
cago (IL): AHA; [cited 2014 Oct 8].
Available from: http://www.aha
.org/content/13/13mergebenefit
commty.pdf
5 KaufmanHall Integrated Manage-
ment Solutions. Latest news: num-
ber of hospital transactions grew in
2013 according to new Kaufman Hall
analysis [Internet]. Skokie (IL):
Kaufman Hall; 2014 Apr 10 [cited
2014 Oct 8]. Available from: https://
www.kaufmanhall.com/SitePages/
NewsDetail.aspx?NewsID=
930626e7-a7b2-4de4-8ded-
884dca241ae2
6 Bazzoli GJ, Dynan L, Burns LR, Yap
C. Two decades of organizational
change in health care: what have we
learned? Med Care Res Rev. 2004;
61(3):247–331.
7 Cuellar AE, Gertler PJ. Trends in
hospital consolidation: the forma-
tion of local systems. Health Aff
(Millwood). 2003;22(6):77–87.
8 Cuellar AE, Gertler PJ. How the ex-
pansion of hospital systems has af-
fected consumers. Health Aff (Mill-
wood). 2005;24(1):213–9.
9 Town RJ, Wholey DR, Feldman RD,
Burns LR. Hospital consolidation
and racial/income disparities in
health insurance coverage. Health
Aff (Millwood). 2007;26(4):
1170–80.
10 Buchmueller TC, Jacobson M, Wold
C. How far to the hospital? The effect
of hospital closures on access to care.
J Health Econ. 2006;25(4):740–61.
11 Phibbs CS, Baker LC, Caughey AB,
Danielsen B, Schmitt SK, Phibbs RH.
Level and volume of neonatal in-
tensive care and mortality in very-
low-birth-weight infants. N Engl J
Med. 2007;356(21):2165–75.
12 Lorch SA, Baiocchi M, Ahlberg CE,
Small DS. The differential impact of
delivery hospital on the outcomes of
premature infants. Pediatrics. 2012;
130(2):270–8.
13 Healthcare Cost and Utilization
Project. HCUP facts and figures:
statistics on hospital-based care in
the United States, 2009 [Internet].
Rockville (MD): Agency for Health-
care Research and Quality; [cited
2014 Oct 8]. Exhibit 2.4: most fre-
quent principal diagnoses by age.
Available from: http://www.hcup-
us.ahrq.gov/reports/factsand
figures/2009/pdfs/FF_2009_
exhibit2_4.pdf
14 Maternity Care Coalition. Access to
health care: getting families through
the door [Internet]. Philadelphia
(PA): The Coalition; c2014 [cited
2014 Oct 8]. Available from: http://
maternitycarecoalition.org/
professionals/public-policy/issues/
access-to-care/
15 Kirby PB, Spetz J, Maiuro L,
Scheffler RM. Changes in service
availability in California hospitals,
1995 to 2002. J Healthc Manag.
2006;51(1):26–38.
16 Lorch SA, Srinivas SK, Ahlberg C,
Small DS. The impact of obstetric
unit closures on maternal and infant
pregnancy outcomes. Health Serv
Res. 2013;48(2 Pt 1):455–75.
17 Charmaz K. Constructing grounded
theory. London: Sage Publications;
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18 Strauss A, Corbin J. Basics of quali-
tative research: grounded theory
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bury Park (CA): Sage Publica-
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19 Shenton AK. Strategies for ensuring
trustworthiness in qualitative re-
search projects. Education for In-
formation. 2004;22:63–75.
20 Knauer C. Survey of prenatal care
availability for Medicaid managed
care recipients, summer 2007, Phil-
adephia. Revised ed. [Internet].
Philadelphia (PA): Maternity Care
Coalition; 2008 Jan [cited 2014
Oct 8]. Available from: http://
maternitycarecoalition.org/wp-
content/uploads/2012/03/Phil-
Prenatal-Care-Report-2007.pdf
21 Livio SK. Obamacare side effect:
more hospitals expected to merge
under Affordable Care Act. Star-
Ledger [serial on the Internet]. 2013
Sep 26 [cited 2014 Oct 8]. Available
from: http://www.nj.com/news/
index.ssf/2013/09/obamacare_
side_effect_more_hospitals_to_
merge_under_affordable_care_
act.html
22 Sun BC, Mohanty SA,Weiss R, Tadeo
R, Hasbrouck M, Koenig W, et al.
Effects of hospital closures and
hospital characteristics on emer-
gency department ambulance diver-
sion, Los Angeles County, 1998 to
2004. Ann Emerg Med. 2006;47(4):
309–16.
23 Lindrooth RC, Lo Sasso AT, Bazzoli
GJ. The effect of urban hospital clo-
sure on markets. J Health Econ.
2003;22(5):691–712.
24 Pilkington H, Blondel B, Carayol M,
Breart G, Zeitlin J. Impact of ma-
ternity unit closures on access to
obstetrical care: the French experi-
ence between 1998 and 2003. Soc Sci
Med. 2008;67(10):1521–9.
25 Lorch SA, Millman AM, Zhang X,
Even-Shoshan O, Silber JH. Impact
of admission-day crowding on the
length of stay of pediatric hospital-
izations. Pediatrics. 2008;121(4):
e718–30.
26 Barfield WD, Krug SE, Kanter RK,
Gausche-Hill M, Brantley MD,
Chung S, et al. Neonatal and pedi-
atric regionalized systems in pedi-
atric emergency mass critical care.
Pediatr Crit Care Med. 2011;
12(6 Suppl):S128–34.
27 Rubinson L, Hick JL, Hanfling DG,
Devereaux AV, Dichter JR, Christian
MD, et al. Definitive care for the
critically ill during a disaster: a
framework for optimizing critical
care surge capacity: from a Task
Force for Mass Critical Care summit
meeting, January 26–27, 2007, Chi-
cago, IL. Chest. 2008;133(5 Suppl):
18S–31S.
28 Xu X, Siefert KA, Jacobson PD, Lori
JR, Ransom SB. The impact of mal-
practice burden on Michigan obste-
trician-gynecologists’ career satis-
faction. Womens Health Issues.
2008;18(4):229–37.
29 Bettes BA, Chalas E, Coleman VH,
Schulkin J. Heavier workload, less
personal control: impact of delivery
on obstetrician/gynecologists’ ca-
reer satisfaction. Am J Obstet Gy-
necol. 2004;190(3):851–7.
30 American College of Obstetricians
and Gynecologists Committee on
Health Care for Underserved Wom-
en. ACOG committee opinion no.
493: cultural sensitivity and aware-
ness in the delivery of health care.
Obstet Gynecol. 2011;117(5):
1258–61.
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Lorch SA 2014 Health Affairs

  • 1. At the Intersection of Health, Health Care and Policy doi: 10.1377/hlthaff.2014.0136 , 33, no.12 (2014):2162-2169Health Affairs 2012−And Consolidations, 1997 Lessons For Providers And Hospitals From Philadelphia's Obstetric Services Closures Scott A. Lorch, Ashley E. Martin, Richa Ranade, Sindhu K. Srinivas and David Grande Cite this article as: http://content.healthaffairs.org/content/33/12/2162.full.html available at: The online version of this article, along with updated information and services, is For Reprints, Links & Permissions: http://healthaffairs.org/1340_reprints.php http://content.healthaffairs.org/subscriptions/etoc.dtlE-mail Alerts : http://content.healthaffairs.org/subscriptions/online.shtmlTo Subscribe: written permission from the Publisher. All rights reserved. mechanical, including photocopying or by information storage or retrieval systems, without prior may be reproduced, displayed, or transmitted in any form or by any means, electronic orAffairs HealthFoundation. As provided by United States copyright law (Title 17, U.S. Code), no part of by Project HOPE - The People-to-People Health2014Bethesda, MD 20814-6133. Copyright © is published monthly by Project HOPE at 7500 Old Georgetown Road, Suite 600,Health Affairs Not for commercial use or unauthorized distribution at University of Pennsylvania Library on December 8, 2014Health Affairsbycontent.healthaffairs.orgDownloaded from at University of Pennsylvania Library on December 8, 2014Health Affairsbycontent.healthaffairs.orgDownloaded from
  • 2. By Scott A. Lorch, Ashley E. Martin, Richa Ranade, Sindhu K. Srinivas, and David Grande Lessons For Providers And Hospitals From Philadelphia’s Obstetric Services Closures And Consolidations, 1997–2012 ABSTRACT The Affordable Care Act is triggering an increase in hospital consolidation and mergers. How other hospitals respond to these disruptions in supply could influence patient outcomes. We examined the experience of Philadelphia County, Pennsylvania (coterminous with the city of Philadelphia), where thirteen of nineteen hospital obstetric units closed between 1997 and 2012. Between October 2011 and January 2012 we interviewed twenty-three key informants from eleven hospitals (six urban and five suburban) whose obstetric units remained open, to understand how the large number of closures affected their operations. Informants reported having confronted numerous challenges as a result of the obstetric unit closures, including sharp surges in delivery volume and an increase in the proportion of patients with public insurance or no insurance. Informants reported adopting a number of strategies, such as innovative staffing models, to cope with the added demand brought about by the closure of nearby obstetric units. Informants emphasized that interhospital communication could mitigate closures’ stresses on the health care system. Our study supports the need for policy makers to anticipate reductions in supply and monitor patient outcomes. D uring the past thirty years the number of hospital consolida- tions, closures, and mergers has fluctuated, with a spike in the mid-1990s that coincided with an increase in managed care insurance plans.1 Hospital consolidations, closures, and mergers have accelerated since the passage of the Afford- able Care Act (ACA): An average of 89–98 merg- ers per year were reported between 2011 and 2013, compared to an average of 30–60 mergers per year between 2002 and 2010.1–5 Studies have shown that these consolidations may affect prices charged to consumers6–8 for hospital services and increase racial/ethnic and income disparities in access to various health care services.9 The impact of these consolida- tions on patient health is less clear. One study showed negative effects for patients with acute time-sensitive conditions such as acute myocar- dial infarction and trauma.10 Other studies showed improved outcomes, perhaps because higher delivery volumes improved health care providers’ comfort in dealing with sick in- fants 11,12 or improved the coordination of care.1 There are more than four million births annu- ally in the United States, and childbirth is the leading reason why women ages 18–44 are hos- pitalized in the country.13 Thus, ensuring ade- quate access to obstetric health care is an impor- tant public health issue. We examined the case of Philadelphia County, Pennsylvania (which is coterminous with thecity of Philadelphia). In that county, between 1997 and 2012, thirteen of nineteen obstetric units stopped providing obstetric services. These clo- doi: 10.1377/hlthaff.2014.0136 HEALTH AFFAIRS 33, NO. 12 (2014): 2162–2169 ©2014 Project HOPE— The People-to-People Health Foundation, Inc. Scott A. Lorch (lorch@email .chop.edu) is an associate professor of pediatrics at the Children’s Hospital of Philadelphia, in Pennsylvania. Ashley E. Martin is project manager in the Center for Outcomes Research, Children’s Hospital of Philadelphia. Richa Ranade is a research assistant in the Center for Outcomes Research, Children’s Hospital of Philadelphia. Sindhu K. Srinivas is an assistant professor of obstetrics and gynecology at the University of Pennsylvania, in Philadelphia. David Grande is an assistant professor of medicine at the University of Pennsylvania. 2162 Health Affairs December 2014 33:12 Access To Care at University of Pennsylvania Library on December 8, 2014Health Affairsbycontent.healthaffairs.orgDownloaded from
  • 3. sures resulted in a reduction in the number of available obstetric beds in the county by approx- imately 50 percent. Hospital obstetric units that remained open in the region experienced an av- erage increase in delivery volume of 57.7 percent during the same period (calculated from data in Exhibit 1), according to birth certificate records and the Maternity Care Coalition.14 These changes occurred with no real change in the total number of deliveries in the five-county Philadel- phia region in the same time period. This degree of obstetric unit closures was larg- er than that experienced by any other metropoli- tan area. However, the trend is consistent with the results of one previous study showing that California hospitals often eliminate obstetric units when they reduce services.15 The Philadel- phia County hospitals that closed obstetric units tended to have smaller delivery volumes, to have no academic affiliation or obstetrics training program, and to be located in the northeastern or northwestern areas of the county.16 The closures of Philadelphia obstetric units were initially associated with an increase in neo- natal mortality, but that abated over time.16 The sustained reductions in obstetric units in Phila- delphia and the observed adverse outcomes pro- vide an opportunity to understand more broadly how hospitals respond to closures of nearby clin- ical units or entire hospitals, regardless of the reason for the closure. This is an important issue for any community or public health department. We conducted a qualitative study of key in- formants involved in obstetrical care in Philadel- phia to answer several questions. First, what is the perceived effect of an acute reduction in ob- stetric care services on the hospitals that remain open? Second, what changes do hospitals and providers in remaining hospitals make in re- sponse to changes in patterns of care? Third, what opportunities do obstetric providers iden- tify to mitigate the adverse effects of changes in access to obstetric care? We hypothesized that our informants would consistently identify changes in delivery volume and patient characteristics, both medical and sociodemographic, as important challenges with closures of obstetric units. Additionally, we sought to understand the role that a local public health department or a regional non- governmental organization could play in re- sponding to these changes. Study Data And Methods Subjects Between October 2011 and Janu- ary 2012 we conducted semistructured inter- views with twenty-three key informants at six urban hospitals and five suburban hospitals in the greater Philadelphia area. The obstetric units in these hospitals were still open as of the begin- ning of 2012 and had remained open as of Oc- tober 2014. The hospitals were chosen based on their loca- tion relative to Philadelphia County and their change in delivery volume since closures began in 1997. This volume is reflected in the delivery volume at each hospital between 1995 and 1996. Thirteen informants were employed at one of the six remaining Philadelphia County obstetric units, and the other ten were employed at one of five selected units in the four counties that border Philadelphia. To build our pool of informants, we first re- cruited obstetric department chairpersons and leaders of private obstetric groups that delivered babies at the eleven study hospitals, because these people were directly affected by the clo- sures of obstetric units in Philadelphia County. Then, based on their suggestions, we identified and recruited additional clinicians at each study hospital, including obstetricians, nurses, nurse managers, and midwives. Each informant had been at his or her respective hospital for at least ten years and had been practicing obstetrics for 10–48 years. Saturation—the point at which no new or rele- vant information emerged from further inter- views—was reached with a total of twenty-three informants. There were eight chairpersons, eight obstetricians, three nurses, three nurse managers, and one midwife, with one or two physicians and one or no nurse from each of the eleven hospitals. At the time of the interviews, tacit verbal con- sent was obtained from each informant. The Institutional Review Board at the Children’s Hos- pital of Philadelphia approved all study proce- dures. The Institutional Review Board did not allow us to identify informants by title or hospi- tal, because doing so would breach participants’ confidentiality and result in the identification of the source of several quotations in the article. Interview Methods A public health profes- sional trained in interviewing techniques con- ducted the in-person and telephone interviews. Each informant chose the interview method he or she preferred. Each interview was digitally recorded and lasted 30–90 minutes. The interviewer used a semistructured open-ended interview guide that included questions about the response of the informant’s hospital and obstetric unit to the closures of obstetric units in the area, the biggest challenges faced by hospitals and obstetricians, the impact of the closures on the financial health of the informant’s obstetric unit, and sugges- tions for how units that remain open can plan December 2014 33:12 Health Affairs 2163 at University of Pennsylvania Library on December 8, 2014Health Affairsbycontent.healthaffairs.orgDownloaded from
  • 4. for and respond effectively to future closures. Analysis The interviews were transcribed and edited to remove identifying information. The transcripts were imported into Atlas.ti, version 6.2—a qualitative data analysis software package used for coding—and a codebook was developed using grounded theory.17,18 Two experienced in- dependent coders separately analyzed the data and then compared findings to reduce the chance of errors from coding and increase the reliability of the themes identified in the data. The themes presented in the Study Results section were not chosen a priori but were devel- oped from informants’ responses. We assessed the reliability and validity of the analyses through four criteria described in previous re- search: prolonged engagement with the data, credibility, transferability, and confirmability.19 With the exception of some minor edits to im- prove clarity, all quotes are provided verbatim. Limitations Our study had several limita- tions. First, this project was not designed to as- sess changes in patient satisfaction resulting from closures. Second, there are elements of the perinatal system in Philadelphia that may occur in only a few areas of the country, such as women receiv- ing care at hospital clinics. These elements may limit the generalizability of our results about the prenatal care system to other areas where clini- cians in private practice deliver the majority of prenatal care. Third, the ability of the local public health department to intervene within the obstetric care system that we found in Philadelphia might not exist in other regions. Thus, they may need other solutions, such as regional hospital collab- orations outside of the governmental system. Finally, because this was a qualitative study, we could not use our results to show a causal association between any changes in response to the closures in Philadelphia that were made by the obstetric units that remained open and any change in perinatal outcomes. Nor could we assess whether the decision to participate in this study was related to either positive or negative experiences surrounding the closures. However, no informant gave information that was entirely negative or positive during his or her interview. Study Results Informants generally described a severely strained obstetric care system following the widespread closures of units or hospitals in the region. In most cases, informants described the closures as happening abruptly. Other hos- pitals “did not have a lot of warning,” one infor- mant said, and thus each closure precipitated immediate challenges in the remaining obstetric units. Several themes and subthemes emerged from our interviews (Exhibit 2) that confirmed data presented in Exhibit 1. First, informants identi- fied economic challenges in obstetrics as a major underlying reason for obstetric unit closures and ongoing challenges within open units. Second, informants described both acute and chronic stresses to the system that arose from changes in patient volume and mix, precipitated by the closures, in the remaining obstetric units. Informants said that they were able to adapt to some of these stresses but not others. Third, informants described an ad hoc re- sponse to obstetric unit closures with little ad- vance planning. The response was reactive, based on changing volumes and patient mix. Fourth, informants offered suggestions for preventing adverse effects from future closures. Reasons For Closures Of Obstetric Units Our informants identified the low financial mar- gins and high fixed costs of running obstetric units as primary reasons for closures. “In Philly, you get paid less, it costs more, and the liability is higher. So ‘perfect storm’ is an overused phrase, but it’s at least a triple whammy,” one person said. Informants identified several unique fac- tors related to obstetrics that led to high fixed costs: high community malpractice rates, which in turn reinforced the need for hospitals to em- ploy obstetricians directly; and high overall per- sonnel costs to run a labor and delivery floor. Informants reported that payments did not keep pace with these expenses. This fact was exacerbated by the high percentage of women with public or no insurance who had been cared for by obstetric units immediately before they closed (Exhibit 3), who might have had lower reimbursement for services compared to women with private insurance. If hospitals are not willing or able to use other service lines to subsidize obstetric units, the pressure to close the units increases. As one in- formant said, “If you don’t own the hospital and Each closure precipitated immediate challenges in the remaining obstetric units. Access To Care 2164 Health Affairs December 2014 33:12 at University of Pennsylvania Library on December 8, 2014Health Affairsbycontent.healthaffairs.orgDownloaded from
  • 5. you can’t circle the finances around to support obstetric practice, the obstetric practice is un- sustainable.” Acute And Chronic Stresses Resulting From Closures Informants identified three ma- jor challenges to obstetric units that remained open: increased delivery volume; changes to pa- tient mix and continuity of prenatal care; and issues with staff morale and support (Exhibit 2). ▸INCREASED VOLUME: Consistent with data shown in Exhibit 1, providers reported “dramat- ically increased volumes” as the primary chal- lenge from obstetric unit closures. Informants did not distinguish between the closure of the Exhibit 1 Changes In Hospitals’ Delivery Volume And Insurance Status In The Philadelphia Region, By County, 1995–2009 Deliveries Change in deliveries, 1995 to 2009 (%) Hospital Status 1995 2009 All With public or no insurance Bucks A Open 1,051 1,363 29.69 247.72 B Open 1,107 1,596 44.17 61.39 C Open 1,390 1,128 −18.85 152.38 D Open 1,414 1,920 35.79 114.65 E Hospital closed 142 Chester F Open 2,042 2,567 25.71 94.60 G Newly open —a 418 —a —a H Open 296 2,280 670.27 −30.76 I Open 1,209 924 −23.57 299.80 J Unit closed 760 Delaware K Open 2,603 2,107 −19.05 447.26 L Open 1,226 1,657 35.15 987.16 M Open 814 833 2.33 199.02 N Unit closed 1,319 Montgomery O Open 3,243 5,155 58.96 76.38 P Open 2,021 1,915 −5.24 −15.16 Q Open 1,791 2,770 54.66 746.70 R Open 1,714 2,666 55.54 57.91 S Open 674 776 15.13 309.14 T Open 773 694 −10.22 21.21 U Unit closed 812 V Unit closed 565 Philadelphia W Open 1,507 2,932 94.56 142.10 X Open 1,597 2,081 30.31 321.58 Y Open 2,307 4,004 73.56 110.99 Z Open 3,585 4,790 33.61 268.98 AA Open 1,644 3,171 92.88 122.45 AB Open 2,340 2,174 −7.09 21.30 AC Hospital closed 476 AD Hospital closed 1,034 AE Hospital closed 967 AF Hospital closed 844 AG Hospital closed 771 AH Unit closed 655 AI Unit closed 279 AJ Unit closed 1,264 AK Unit closed 330 AL Unit closed 1,208 AM Unit closed 1,865 AN Unit closed 711 AO Unit closed 1,144 SOURCE Authors’ analysis of birth certificate records, Pennsylvania Department of Vital Statistics. NOTE Data confidentiality agreements precluded listing hospitals by name. a Not applicable. December 2014 33:12 Health Affairs 2165 at University of Pennsylvania Library on December 8, 2014Health Affairsbycontent.healthaffairs.orgDownloaded from
  • 6. first obstetric unit and the closure of the fourth or the thirteenth unit. The acute pressures from a closure were exac- erbated by two other factors: when the time be- tween the announcement that an obstetric unit would close and the actual closure was just a matter of weeks; and other surges in volume that are part of the normal practice of obstetric care. Theincreased delivery volumesled informantsto report that their obstetric unit “was packed to the gills” and that “it was not uncommon to see patients in a cubbyhole, patients outside my of- fice.” One informant reported that “we had peo- ple deliver in the hallway or in the bathroom.” Increases in delivery volume, whether acute or chronic,raised concerns about thequality of care provided to patients. ▸CHANGES IN PATIENT MIX AND CONTINUITY OF CARE: After the closures, obstetric units that remained open experienced an average increase of 216 percent in women with public or no in- surance between 1995 and 2009 (calculated from data in Exhibit 1). Informants confirmed these changes to their overall patient mix, reporting “a shift to more Medicaid patients and just in gen- eral a more urban, poor, less insurance, late pre- natal care” population. As a result, informants described a greater need for support services, including those provided by social workers. In addition, after the closures more patients received prenatal care at a different setting from where they delivered their child. In Philadelphia the majority of patients used to receive care at the hospital clinic where they eventually delivered their child.20 After the closures, the system of prenatal and antenatal care was described as “fractured.” One informant said that patients now “get your prenatal care and then you end up somewhere else to have a baby, and it’s not geographically rational.” As a result, many informants reported that “we are seeing some people with no prenatal care.We are seeing some people who said they had care elsewhere and when we called elsewhere, wher- ever that may be, they either could not locate their record or told us that there was no care provided there.” Care became more inefficient, which worsened the effects of surges in delivery volume. ▸STAFF MORALE AND SUPPORT: With in- creases in delivery volume, new obstacles to pa- tient care, and increased financial pressures, in- formants reported decreases in staff morale and enthusiasm. Changes to obstetric unit volume resulted in people feeling that their unit was “constantly understaffed” and that it was “not uncommon to do three or four deliveries in a shift…and have a two-patient assignment.” Additionally, recruiting additional staff to those obstetric units that remained open became difficult. Informants believed that these recruit- ment issues occurred because of the pressures of seeing patients more quickly with less support, which led to lower job satisfaction and morale. Response To Closures By Remaining Hospi- tals Many responses by hospitals to the chal- lenges mentioned above were reactive rather Exhibit 2 Themes And Subthemes In Philadelphia Region Obstetric Unit Closures, Identified By Twenty-Three Key Informants Reasons for closures Liability Poor reimbursement Minimal finances System stressors Delivery volume surges Changes to patient mix and continuity of prenatal care Staffing challenges Responses to closures Structural changes Staffing model changes Ways to prevent adverse effects Communication between hospitals Regionwide protocols SOURCE Authors’ analysis. Exhibit 3 Percentage Of Deliveries With Public Or No Insurance At Closed Obstetric Units In The Philadelphia Region, 1995 And Last Year Open Deliveries with public or no insurance (%) Hospital 1995 Last year open E 14.8 12.3 J 16.8 52.2 N 14.3 53.4 U 4.8 11.8 V 1.9 31.7 AC 51.2 32.4 AD 23.6 13.6 AE 11.7 4.5 AF 59.6 77.7 AG 37.6 54.1 AH 15.6 49.0 AI 17.1 16.7 AJ 38.6 74.4 AK 25.4 70.0 AL 23.4 40.6 AM 5.7 29.1 AN 2.1 47.1 AO 2.5 38.9 SOURCE Authors’ analysis of birth certificate records, Pennsylvania Department of Vital Statistics. NOTES Data confidentiality agreements precluded listing hospitals by name. See Exhibit 1 for more details on hospitals by letter name. Access To Care 2166 Health Affairs December 2014 33:12 at University of Pennsylvania Library on December 8, 2014Health Affairsbycontent.healthaffairs.orgDownloaded from
  • 7. than proactive. The responses reflect two prima- ry areas of change: structural changes to the obstetric units and changes to the units’ staffing. ▸STRUCTURAL CHANGES: In response to deliv- ery volume changes, there were a large number of changes to the obstetric units that remained open. However, these changes often occurred months or years after the change in volume at the hospital level, and hospitals “outgrew what they built.” One informant recommended: “Whatever you’re building, build it double what you think you need.You will fill it and regret that your units are not bigger.” Instead of having its patients recover in labor rooms, one hospital built “a [separate] three-bed recovery room to focus the use of labor rooms for active labor patients [only].” This hospital’s tri- age area was expanded from a three-bed to a six- bed unit: “We were actually at a point at times that we could use more than six beds. We added an additional ultrasound room because the OB ultrasound volume was going up.” Another hospital committed extra space and modified it over the past four years. “We’ve got- ten support from the hospital, from the admin- istration, and the state to build three recovery rooms.We built an antenatal testing unit [where] we do over 12,000 tests a year, and we built a six- bedded triage unit which we previously hadn’t had,” an informant from this hospital explained. ▸STAFFING MODELS: Staffing increased on the labor and delivery units. However, respondents reported that they needed a “crystal ball, because we didn’t really know what volume was going to come.” This resulted in significant lag times be- fore staffing could be permanently increased. For some units, increased hiring was at the level of advanced-practice professionals such as nurse midwives, physician assistants, and nurse practitioners. Other units put new staffing mod- els in place because of the increased volume and concerns about the quality of care and patient safety. “We actually have two obstetrical pro- viders in house 24=7, and three [in house] Mon- day through Friday, during the day,” one infor- mant explained. However, the increased number of providers often came at a cost to communication and lead- ership. “It’s different communicating with eight or nine people than it is [with] four people,” an informant said. “And I think that’s something we’re still working on. You know, how do you get everybody to be part of the big picture? How do you know what’s happening somewhere else and how that’s going to impact your unit or an- other unit?” As with the increased delivery volume, there were concerns that these communication chal- lenges could affect the quality of patient care. Preventing Adverse Effects From Future Closures Several informants described a severely strained obstetric care system following the widespread closures. Their experience with these closures led them to identify two areas for improvement: better communication between hospitals in ad- vance of closures, and the development of re- gional solutions to coordinate prenatal care and care at the time of delivery. Communication Between Hospitals To An- ticipate Closures One key lesson our inform- ants provided was that when an obstetric unit is about to close, leaders from local or state health departments or regional nongovernment organ- izations need to help improve discussion with fellow institutions and hospital leaders. “If I was closing my maternity program, I would try to reach out to other programs in the area and try to have as smooth a transition as possible,” one informant observed. “It’s a tough decision to close a hospital, and I think hospital administra- tors would want to work with other hospitals in their region, and also departments should see how we can best care for this population.” Hospitals compete with each other for obstet- ric patients. Thus, local and state health depart- ments and other organizations may be needed to facilitate discussions among hospitals to opti- mize the transition of care for patients in the local community and give remaining hospitals time to adequately staff their units in prepara- tion for potential surges in delivery volume. Regional Ways To Facilitate Efficient And High-Quality Care Informantsfeltthat regional solutions were needed to address the disconnect between where prenatal care is delivered and the hospital where a delivery occurs. One suggested solution was “evidence-based protocols” that would standardize care across providers and in- stitutions. An informant noted that “care is au- tomatically less fragmented if everyone is using the same protocols.” Regional health information exchange that would facilitate access to prenatal care informa- tion and protocols was another solution pro- posed to decrease the fragmentation of care. Even though such a system of standardized pro- tocols does not exist across hospitals in the re- gion, several informants noted that individual obstetric units should develop “good systems and protocols” to manage both the increased volume and surges in patient numbers experi- enced by the hospitals that remained open. Discussion The case of obstetrical care in Philadelphia Coun- ty highlights issues that patients and providers December 2014 33:12 Health Affairs 2167 at University of Pennsylvania Library on December 8, 2014Health Affairsbycontent.healthaffairs.orgDownloaded from
  • 8. may experience when access to care decreases. The primary challenges in Philadelphia included sharp surges in delivery volume, changes in pa- tient mix at individual hospitals, loss of continu- ity between prenatal and delivery care, and lag times of months to years before new staffing needs could be met and bed capacity could be increased at the hospitals that remained open. All of these challenges contributed to concerns about acute erosion in the quality of care. Our informants emphasized the importance of communication and planning when even one or two obstetric units close.When a hospital or unit closes without warning, there can be large-scale effects on public health, even if the closure is justified by the hospital’s economic health or the number of deliveries it performed. Commu- nication and planning will become increasingly important with the continued hospital consoli- dations and mergers that are expected with the ACA’s full implementation.21 The greatest challenge identified by our in- formants was related to delivery volume. Hospi- tals experienced an average increase in volume of 57.7 percent, and several county hospitals ex- perienced increases of over 70 percent. These volume changes were most disruptive when a closure occurred suddenly and the remaining providers had no warning of it. The increased number of volume surges re- ported by our informants parallels similar surges in other areas, such as those caused by emergen- cy department closures in Los Angeles,22 urban hospital closures,23 and the routine operation of obstetric units24 and provision of pediatric hos- pital care.25 Similar concerns have been raised when public health departments and hospitals discuss the potential for mass-casualty care.26,27 Any mechanism that allows hospitals adequate time to adjust their staffing and structural mod- els might help minimize some of the adverse effects of these closures. Another challenge was that patient mix changed at the hospitals that remained open. They saw an increasing proportion of women having public or no insurance who previously had received care at hospitals that since closed. These changes support informants’ concerns about the financial challenges of running an ob- stetric unit, which could result in decreased job satisfaction by providers of obstetrical care. Pre- vious surveys of obstetricians suggest that mal- practice premiums are a strong driver of job dissatisfaction28 but that job satisfaction also declines as workloads increase and personal control over day-to-day activities at work de- creases.29 Potential solutions for these changes include adding specific personnel, such as social work- ers, to help both patients and providers adapt to these changes. Additionally, hospitals and health careworkersneed toensurethat theyhave the cultural competency training to work with changing patient populations.30 We found that the responses from informants at urban academic centers were similar to those from informants at community-based practices both in Philadelphia and in the surrounding sub- urban counties. This fact emphasizes a need for coordination and communication across county lines and among different hospital systems and public health departments. There is little pub- lished literature about such direct discussions between hospitals that otherwise compete for patients within a given health care market. Obstetrics is particularly challenging because of the time-limited nature of pregnancy. Thus, our informants identified public health depart- ments or other regional collaborative bodies as potential stakeholders in both monitoring changes in access to health care and assisting patients and hospitals in transferring care dur- ing pregnancy. Conclusion In the future, public health officials should work to identify hospitals and specific units at risk of closing. Furthermore, they should collaborate with affected providers to plan for changes in patient mix and delivery volume to ensure a smooth transition for patients. ▪ When a hospital or unit closes without warning, there can be large-scale effects on public health, even if the closure is justified. Access To Care 2168 Health Affairs December 2014 33:12 at University of Pennsylvania Library on December 8, 2014Health Affairsbycontent.healthaffairs.orgDownloaded from
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