Government of the District of Columbia
Anthony A. Williams, Mayor
Department of Health
DC HEALTHCARE ALLIANCE
Alive and Well!
Tuesday, November 26, 2002
In the past weeks, there have been a number of news
broadcasts and newspaper articles about the financial problems facing
National Century Financial Enterprises. According to the reports, National
Century is one of the largest providers of hospitals bonds in the country.
Doctors Community Healthcare Corp, which owns Greater
Southeast Community Hospital Corp. (GSCHC) sad Hadley Memorial Hospital is
one of the customers of National Century. National Century has filed
bankruptcy. Doctors Community Healthcare Corp fled bankruptcy on November
20, 2002. This unfortunate incident lass a significant impact on the
financial status of GSCHC and Hadley Memorial Hospital.
GSCHC is the prime contractor for the DC Healthcare
Alliance which provides inpatient, outpatient, primary care and emergency
services far the District's uninsured individuals.
The DC Healthcare Alliance will continue to serve the
uninsured residents of the District despite the troubles at the hospital.
GSCHC is only one hospital provider in the Alliance. There are four other
hospitals, 28 clinics, and over 800 primary and specialty care providers.
DC General's Emergency Room and Clinics will continue to provide services.
What's even better is that the dollars of the Alliance are in the
District's bank account. GSCHC does not hold the health care dollars ....
so even though the hospital is in bankruptcy, the Alliance dollars are
The Alliance Partnership will continue regardless of
who is the prime contractor. The prime contractor serves to manage certain
elements of the partnership.
The DC HealthCare Alliance has much to celebrate!
- Over 37,000 District residents were eligible to receive health care
through the Alliance during the first year of operations.
- There were over 60,000 primary care and specialty care visits
- 153,000 member prescriptions were filled
- 97,000 Dental visits
- 1,600 members received inpatient care provided
- 12,000 Emergency Room visits provided
The Department of Health (DOH) has oversight responsibility for the DC
Healthcare Alliance Contract. The Safety Net Administration was created to
play this role.
The following actions have been taken so far by DOH:
- Currently looking at other options for prime contractor for the
- Monitors have been placed at GSCHC to ensure that the quality of
patient care meets the appropriate standards.
- Daily meetings or conference calls have been initiated with key DOH
staff members to review information collected each day.
- Discussions are being held with the leadership of the hospital to
acquire real time information.
- The Safety Net Administration is collecting information regarding
the ongoing financial status of the hospital.
- DOH General Counsel is reviewing contractual and other legal issues
that have an impact on the situation.
- DOH is reviewing several options for ensuring continuity of patient
care in the Event that GSCHC is unable to maintain its financial
EMS is also increasing their staff to ensure the timely transport of.
patients to appropriate facilities.
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UNITED STATES DEPARTMENT OF HEALTH
Centers for Medicare and Medicaid Services
Washington, DC 20201
November 27, 2002
The Honorable Anthony A. Williams
John A. Wilson Building
1350 Pennsylvania Avenue, NW,
Washington, DC 20004
Dear Mr. Mayor:
Thank you for inviting me to visit Greater Southeast Community Hospital
with you today. Due to a prior scheduling issue, Secretary Thompson could
not make it, but I can assure you that we are both committed to doing
whatever we can to work with you to keep the DC public health system
operating. I'm glad to have the chance to see first-hand what the city and
the hospital are doing.
For our part, I want to inform you that that the Centers for Medicare
and Medicaid Services is taking the following initial steps to help the
hospital through the next several months:
First, we're suspending monthly collection of Greater Southeast's federal
debt payments for one year. Suspending those payments, which equal $82,000
per month, should free up close to $1 million in annual cash flow for the
Second, we're going to direct accelerated payment of Medicare claims
that Greater Southeast has filed and will file with their fiscal
intermediary, which should improve cash-flow.
Finally, we're going to expedite payment of amounts the hospital
estimates it is owed by the Medicare program. Doing that will allow w to
promptly pay $3 million in outstanding Medicare claims to the hospital.
While we'll have to ultimately work the final numbers out with the fiscal
intermediary, this will provide au immediate cash infusion to the
We recognize that you some tough decisions when you re-structured the
District's public health system last year, Mr. Mayor, and we're confident
that you are moving is the right direction. The Medicare and Medicaid
programs are committed to helping you and the DC public health community
work through what we believe is a short-term crisis.
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|FOR IMMEDIATE RELEASE
November 26, 2002
|Contact: Gwen Russell
(202) 373-5990 or (202) 302-0497
GREATER SOUTHEAST COMMUNITY HOSPITAL
1. Greater Southeast Community Hospital
HADLEY MEMORIAL HOSPITAL AND DC GENERAL
OPERATIONAL STATUS UPDATE
Census as of November 26, 2002:
Effective November 20, 2002, in consultation with the Prince George's
County and DC EMS, Greater Southeast Community Hospital is accepting
Priority 3 and 4 level patients. (Patients that are less likely to require
placement on a critical care unit)
Greater Southeast Community Hospital's contract with PhyAmerica to
supply ER physicians to both Greater Southeast Community Hospital and DC
General emergency rooms will end on November 30, 2002.
NES will have a proposed contract for supplying Emergency Department
physicians prepared by November 26, 2002 with a December 1, 2002 start
A meeting was held on November 21, 2002 with the Medical Directors of
the area Hospital Emergency Room departments. Dr. Michael Richardson was
also present from Department of Health. The focus of discussion was on
critical lack of capacity of ICU beds and the need to accomplish
efficiently inter-hospital transfer of critical care patients awaiting a
bed. Dr. Richardson agreed to support the recommendation of the group to
maintain on onsite EMS supervisor on duty 24-hours a day - The
recommendation was implemented on Friday, November 22, 2002.
NOTE: The hospital only goes on diversion for two hours at a time based
On our existing policy and procedures.
Critical Care Units
Our Critical Care Units arc operating at a reduced capacity based on
our ability to adequately staff the unit with registered nurses. As
patients are discharged new patients can be accepted. The target capacity
has been reached.
No change or reduction in clinic, Emergency Room department or
2. DC General Ambulatory & Emergency Card Center
There have been no changes in operations of the clinics or the
Emergency Room at DC General.
3. Hadley memorial Hospital/Skilled Nursing Facility
Census as of November 26, 2002:: LTAC: 32, SNF: 89
No change in operations.