Cleveland Clinic Indian River Hospital’s chief executive was set to report on the Vero hospital’s finances to the Hospital District trustees today, hopefully building on progress made to the bottom line in 2024.
Last fall, Dr. Richard Rothman, then-newly appointed vice president and chief medical officer, predicted he could achieve a break-even point in the struggling hospital’s month-over-month financials by the end of 2025.
This spring, he then offered encouraging news that the hospital had cut its losses for 2024 to $48 million, down from 2023 losses of $60 million, and 2022 losses of $68 million.
Cleveland Clinic was chosen from an impressive field of suitors to take over the county’s largest hospital in 2019 after the Hospital District determined it could no longer support operations without the backing of a larger corporation. In lieu of rent during the initial decade of its 75-year lease of the district-owned buildings and land, Cleveland Clinic committed to hundreds of millions in capital improvements over a 10-year period.
Cleveland Clinic Indian River Hospital books approximately $21 million in losses annually due to what hospital officials call uncompensated care for indigent and uninsured patients. Of that number, county taxpayers, through their Indian River County Hospital District property taxes, contribute $4.2 million toward indigent prenatal care and nearly $1 million to behavioral health services.
The Hospital District in September committed an additional $2 million in the coming year to help sustain labor and delivery services in Vero, following public outcry at the prospect of losing the maternity ward if it was no longer financially sustainable.
Cleveland Clinic’s labor and delivery unit is designed and staffed to handle 1,200 or more babies per year, but current projections are that only 900 babies will be born in Vero in 2025 – roughly 75 percent of all babies born to county residents. District staff and trustees are developing an agreement to solidify maternity services in Vero, with the $2 million to be released only when the document is executed.
Since the Hospital District funds portions of Cleveland Clinic’s Behavioral Health Center (BHC), written reports on the two funded programs are also up for consideration on Thursday.
Behavior health administrative director Cecelia Stalnaker-Cauwenberghs in her written report to district trustees had some good news to share. Despite seeing more indigent patients, the Behavioral Health Center only used 83 percent funding approved for its outpatient and Emergency Department programs during the fiscal year ended Sept. 30.
“Due to work facilitated around insurance credentialing and assisting families and patients with Medicaid Enrollment, revenues were higher – allowing for decrease funding request,” she said in the report.
For the six months ending Sept. 30, the BHC had projected 4,000 patient encounters, but ended up providing 5,018 encounters, for a 25 percent increase. The number of unique individuals receiving services was up 30 percent beyond projections.
The increased patient numbers she attributed to marketing and social media awareness efforts about BHC services for residents of all ages, including the adolescent outpatient program.
But some of what she had to report, with regard to access to psychological care and counseling services, was not so positive.
“We continue to observe significant challenges across the behavioral health landscape in Indian River County. Community members consistently report difficulty establishing care with providers across the spectrum including therapy, psychiatry, and detox services,” he said.
“Outpatient behavioral health programs remain limited, particularly for indigent and uninsured populations. As a result, many individuals are forced to seek care outside the county, which introduces substantial barriers such as financial strain, lack of transportation, delayed access to treatment, and diminished involvement from local support systems – factors that critically impact recovery outcomes,” she said in the report.
Other matters in the report seemed beyond the scope of hospital care, but related to the mental health of local senior citizens. Depression is the leading diagnosis at the BHC, accounting for about two thirds of admissions.
“Additionally, we are witnessing a growing crisis in housing stability among adults aged 65 and older. Longtime residents of senior-living communities – many of whom own their homes or mobile homes but not the land beneath – are being priced out due to dramatic increases in lot rental fees, with some reporting rates doubling or even tripling,” Caughwenbergs said.
“This disruption not only threatens housing security but also places additional strain on health and social services as displaced seniors face increased vulnerability.”
The Indian River County Hospital District meets at 4 p.m. Thursday at the Indian River County Administration Complex in the Commission chambers. Meetings are also live streamed via Zoom.
