Severe financial losses at Habersham Medical Center have prompted administrators to scale back operations at the Demorest facility. Hospital staff informed Now Habersham earlier this week administrators had ordered a 15% across-the-board cut. While hospital administrators did not confirm that figure, they did announce this evening a series of measures they are taking to shore up the hospital’s finances ahead of a planned takeover by Gainesville-based Northeast Georgia Health System.

In a press release issued Thursday, Habersham Medical Center’s Vice President of Culture and Wellness Kesha Clinkscale says the hospital is making “strategic decisions” to help ensure critical hospital operations will continue uninterrupted until the Hospital Authority of Hall County and the City of Gainesville, and later, Northeast Georgia Health System (NGHS), assumes ownership of HMC on July 1.

Below is a list of the operational adjustments HMC announced:

Intensive Care Unit (ICU)

• The hospital will stop admitting new patients to the ICU effective at midnight Friday, February 3, and will pause all service when the last of the current patients is safely discharged.
• The ICU has an average daily census of one to three patients and is operating at a financial loss.
• Any patient who comes to HMC after ICU service is paused will be assessed based on acuity and transferred to the most appropriate facility if ICU care is needed.

General Surgery Emergency Procedures

• The hospital will pause the utilization of on-call general surgeons to cover emergency procedures effective at midnight on Friday, February 3.
• The current volume being seen by this service is averaging four procedures per week, and the service is operating at a financial loss.
• Regular Emergency Department operations will continue to be open 24/7.
• Any patient who comes to HMC during typical on-call hours will be assessed based on acuity and transferred to the most appropriate facility if emergency surgical care is needed.

Operating Rooms (ORs)

• The strategic decision has been made to consolidate OR operations from five days per week to three days per week, effective February 13.
• Based on current surgical volume, rescheduling ORs to be open Monday, Tuesday, and Wednesday will maximize efficiency while meeting current demand.

Total Fitness (Employee Fitness Center)

• Total Fitness will pause operations effective February 22.
• Total Fitness currently operates at a financial loss.
• Members of Total Fitness who have prepaid dues will receive a prorated refund.

HMC will continue to support employee wellness in other ways including:

• Wellness Fair on February 8
• Financial Wellness classes offered in partnership with Regions Bank
• Mental Wellness services provided in partnership with Avita

“While decisions to adjust operations are never easy, imperative steps are being taken now to improve the hospital’s financial situation,” says Habersham County Hospital Authority Chair Dolly Ritchie.

“These moves target areas that currently serve few patients and are expected to reduce potential financial losses by up to $1 million over the next five months – which in turn helps ensure the hospital will stay open until July 1 and won’t use funds committed by the County Commission unless they are absolutely necessary,” says Ritchie.

Habersham Medical Center President and CEO Tyler Williams says the hospital is releasing any contracted labor involved with the discontinued services. He adds, “we are working with employees in each of the impacted areas to redeploy them to other areas within the hospital or potentially transfer to positions within NGHS.”

“Great care is being taken to retain all willing and qualified staff members and ensure processes are put in place to ensure appropriate transfers for patients who may need these services in the future,” Williams says.

HMC and NGHS agreed last month to enter into a Management Services Agreement until July 1, 2023. Under this agreement, NGHS management provides day-to-day oversight and review of critical functions and services – as well as financial services and information technology (IT) services support – with regular updates to the Habersham Hospital Authority and Habersham County representatives.

“We applaud HMC leadership for making these difficult operational decisions, and we look forward to reassessing how some of the services may resume at a later date,” says John Kueven, who is president of Northeast Georgia Medical Center Gainesville and has oversight of NGHS’ other hospitals in Lumpkin and Barrow counties. “We will continue to work together to ensure healthier tomorrows for the people of Habersham County.”