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Aurora and Advanced Healthcare will be creating a fully integrated continuum
of health care services in Ozaukee County, allowing us to coordinate patient
care across many different services and sites. This sets the stage for us to
drive down the cost of care. |
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Among those who embrace competition in health care are the majority of
leading health care economists and no less an authority than the U.S.
government. |
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The many factors driving health care costs today do not include capital
spending on buildings and equipment. |
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On the contrary, village officials heard from many area residents, business
and community leaders, patients and others since this project was proposed
last summer. They tell us the responses were overwhelmingly positive. |
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Editorial: Higher costs ahead
By approving the building of a new hospital less than five miles
from an existing one, the Grafton Village Board chooses local growth
over good economic sense
Milwaukee Journal Sentinel, December 20, 2007
By approving the building of a new hospital less than five miles from
an existing one, the Grafton Village Board chooses local growth over
good economic sense.
Before the Grafton Village Board voted this week to approve three
measures that clear the way for Aurora Health Care to build a hospital
in Ozaukee County, Village President James Brunnquell said one of
Grafton's goals was to attract more businesses and that Aurora will
provide 600 good-paying jobs.
On the surface, those are valid reasons to approve a new commercial
development. And the economic context in which Brunnquell framed the
board's decision shows that's apparently how the board views this
matter.
But if the Grafton board wanted economics to be a factor in the
 decision,
it should also have considered another impact - the strong likelihood it
will add to health care costs in the region. The new hospital would be
less than five miles from Columbia St. Mary's in Mequon, which has an
addition that remains unfinished.
The presentation for the new hospital included video testimonials
from
 the
mayor of Green Bay and business people there who contended that Aurora's
decision to open a new hospital in that city in 2001 had helped to slow
the increase in health care costs. We're dubious and would like to see
the evidence from insurance and employers to back up that claim.
How is building another hospital in Ozaukee County going to control
the
area's health care costs? At an earlier meeting, an executive vice
president of Columbia St. Mary's cited a national standard that 1.5 beds
per 1,000 residents is considered adequate, and Ozaukee County already
has 2.2 beds per 1,000 residents. If the hospital is built and Columbia
St. Mary's eventually adds beds, that number would jump to 4.1 beds.
Some
people claim that adding hospitals will drive down prices through
competition. But it doesn't work that way in health care because someone
has to pay for the construction costs, the high-priced medical equipment
and staffing - and consumers and
employers
are that someone.
Leo Brideau, Columbia St. Mary's chief executive officer and
president, told the Village Board that if the Aurora hospital goes
ahead, the two health systems will be forced to compete for nurses, who
are already
in
high demand. Unfortunately, Brideau didn't get a chance to speak until
nearly an hour and a half after the meeting started. Brunnquell then
allowed two people to counter Brideau's argument.
"They (Grafton officials) didn't want to hear our whole story,"
Brideau
later
told a reporter
We're not so sure they would have listened anyway.
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Actually, the video features a former mayor of Green Bay. The
editorial writers picked up this error from the Journal
Sentinels news article about the Grafton meeting. The article
contained a total of eight factual errors. |
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As a competitor seeking to protect its monopoly position in
Ozaukee County, Columbia St. Marys is sorely lacking in
credibility. We would have expected the newspapers editorial
writers to recognize this. |
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Mr. Brideau was not the applicant in this matter and is not a
Grafton resident. Village officials were under no obligation to
provide him a forum. |
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Graftons elected representatives are to be commended for their
careful review of this project. |
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