Rep. Nikki Budzinski, D-Ill., sent a letter to Glendale, Calif.-based American Healthcare Systems Chairman and CEO Mike Sarian, PhD, and Gateway Regional Medical Center CEO Joe Ottolino seeking answers after a payroll disruption and an ambulance diversion at the Granite City, Ill., hospital, CBS affiliate KMOV reported Aug. 24.
Ms. Budzinski said in the letter that Gateway Regional is an essential healthcare provider for Granite City, and that the possibility of financial instability or fund mismanagement jeopardizing its services and jobs is deeply concerning to her and her constituents. She said recent developments raise questions about AHS’ management of Gateway and the hospital’s ongoing financial and operational stability.
More than 600 Gateway employees went without timely pay in late July after AHS cited a “temporary cash flow issue.” Dr. Sarian and his wife loaned the hospital $1 million to cover the shortfall.
On July 31, Gateway Regional went on ambulance diversion for part of the afternoon, which the hospital said was “driven by one concern: making sure every patient already in our hospital had the staff needed to care for them.” The Illinois Department of Public Health has sent surveyors to Gateway Regional in the weeks since, and CMS has referred the case to a quality improvement organization for review. Gateway said it is updating its diversion policy with the state’s Region 4 EMS coordinator.
“These incidents make clear that the financial problems at Gateway are not just superficial, but are forcing staff to make life-and-death decisions involving patients,” Ms. Budzinski said in the letter.
The letter asks seven questions to AHS covering the hospital’s stabilization timeline: whether employees have been made whole on pay and benefits, staffing fixes to prevent future diversions, repayment of overdue taxes and vendor bills, whether funds have been moved out of Gateway to other AHS entities, and steps to keep similar problems from recurring at AHS’ other hospitals. It also asks AHS to commit to promptly notifying her office of any future service disruptions and to briefing her staff on the hospital’s financial condition.
“Gateway Regional is open, and our teams are caring for patients every day,” an American Healthcare Systems spokesperson told Becker’s in a statement. “We are focused on keeping the hospital strong for Granite City and the Metro East, and are glad that Congresswoman Budzinski shares our commitment. We received the Congresswoman’s letter this morning and will respond to her questions in writing. Gateway has also requested a face-to-face meeting with the Congresswoman, and CEO Joe Ottolino has invited her to visit the hospital and sit down with its leadership team for the first time.”
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