A Kaleida Health-affiliated hospital in Bradford, Pa., will end its money-losing behavioral health services Sunday, a decision that has drawn the ire of at least one elected official and that will shift more of a burden onto its sister hospital in Olean and other health care providers in the community.
In a statement, Bradford Regional Medical Center said staffing shortages have left gaps in coverage, and a decline in referrals and patient admissions inflicted ongoing financial losses. In fact, the hospital’s behavioral health services have lost $1.6 million so far this year, the medical center said.
The hospital said it is “taking proactive steps to evolve and change to meet the current market needs as well as anchor essential services at Bradford Regional.” The statement said the hospital’s goal is to ensure the entire medical center is sustainable into the future. The behavioral health programs that are ending at Bradford Regional include a range of psychiatric services for those with mental health or addiction disorders.
Many rural hospitals across the country have opted to cut services to stay afloat. More than 360 rural hospitals, including 20 in New York and seven in Pennsylvania, are at immediate risk of closing because of severe financial problems, according to a recent report from the Center for Healthcare Quality and Payment Reform.
The decision at Bradford Regional affects 35 employees, who will be offered employment in vacant positions in hopes of “retaining 100% of the staff,” the hospital said.
A contributed photo of Olean General Hospital, an affiliate hospital of Kaleida Health. Olean General is looking to add behavioral health services, while those services are closing at its sister hospital in Bradford, Pa.
The further reduction of services at Bradford Regional caught the attention of Pennsylvania Rep. Martin Causer, a Republican whose legislative district includes Bradford.
“The decision to reduce services is being made by corporate executives at Kaleida Health in Buffalo, NY,” Causer said in a statement Wednesday. “These executives don’t know anything about our community, have never taken the time or effort to learn about the health care needs of our region, and have demonstrated repeatedly their failure to even communicate with community leaders regarding the needs of those they serve in rural Pennsylvania. Kaleida Health needs to invest in the health care needs of the community or sell BRMC to another health care system that will focus on providing the care our residents need and deserve.”
Causer also penned letters to Pennsylvania’s health secretary and attorney general, asking those officials to investigate to ensure Kaleida is complying with all regulations and to ensure a New York-based health system is not discriminating against Pennsylvania residents.
Bradley Chapman, president of MaineHealth Memorial Hospital in New Hampshire, has been named president of Bradford Regional Medical Center and Olean General Hospital.
In a statement, Kaleida acknowledged Causer’s concerns but added that the decision to close behavioral health services at Bradford Regional was “made with input from informed local health care experts that have the understanding of the complex challenges facing rural hospitals across the country.” Kaleida also said it is trying to recruit more physician specialists, including in cardiology, urology, OB/GYN, pediatrics and vascular, to Bradford Regional to strengthen outpatient services through the entire system.
“Kaleida Health remains committed to investing in the overall health of the Bradford community, but due to multiple external factors, couldn’t sustain quality behavioral health services at BRMC,” the health system said.
Upper Allegheny Health System, which includes Bradford Regional and Olean General, affiliated with Kaleida in 2017. While the affiliation provided more sound financial footing for the two rural hospitals, it also helped Kaleida by widening its geographic reach and bringing in more patients for its specialty medical programs.
While it is closing behavioral health services at Bradford Regional, Kaleida is looking to add services to Olean General, which already has a 14-bed behavioral health unit. The two facilities are separated by about 20 miles, or a half-hour drive.
Many integrated health systems have moved toward centralizing specialized services at one facility in a region, often transferring patients who present at one emergency room but may need the specialized services provided at a sister hospital.
Olean General landed $5 million in state funding to add a Comprehensive Psychiatric Emergency Program, which will provide services to people experiencing a behavioral health crisis.
In mid-2024, Olean General landed $5 million in state funding to add a Comprehensive Psychiatric Emergency Program (CPEP), which will provide services to people experiencing a behavioral health crisis.
Western New York’s largest CPEP is at Erie County Medical Center, a 24/7 unit that sees an average of 25 patients per day and has an extended observation unit, mobile crisis outreach and children’s services, including an inpatient adolescent unit. ECMC’s CPEP can sometimes get overwhelmed by the community need, leading some patients to wait more than a day to receive care.
The new psychiatric emergency program at Olean General is one part of a broader emergency department project that Kaleida has planned for the aging hospital. Kaleida has submitted a $17 million grant application through the Statewide Health Care Facility Transformation Program to overhaul its Emergency Department at Olean General.
Michael P. Hughes, senior vice president and chief administrative officer at Kaleida, said the health system will only move forward with the CPEP project if the grant for the Emergency Department is approved.
“The two go hand in hand,” Kaleida President and CEO Don Boyd told The Buffalo News in June. “We can’t really do one without the other.”
State Health Department spokesperson Danielle De Souza said the grant should be announced in early 2025, but couldn’t comment on specific applicants.
Jon Harris can be reached at 716-849-3482 or [email protected]. Follow him on Twitter at @ByJonHarris.
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