MUNSTER | A cure for Methodist Hospitals' financial ills most likely would come from the outside, Mitch Roob, Indiana Family and Social Services Administration secretary, said Tuesday.
Roob, in town on Tuesday to push for support for the agency's health care programs, told a group of Times editors and reporters Methodist received a nearly $17 million federal disproportionate-share payment in June.
However, "We continue to subsidize a business model that ultimately is not going to be successful," Roob said.
Methodist officials did not return phone calls seeking comment on Tuesday.
The high percentage of uninsured and low-income patients served by Methodist Hospitals qualifies it for Medicaid Disproportionate Share Payments. The hospital has campuses in Gary and Merrillville.
The hospital has struggled in recent years and in 2006 tallied losses of about $23.6 million.
Roob, who in a previous job worked to stabilize financially ailing Wishard Memorial Hospital in Marion County, said acting as a "health czar" for Lake County isn't part of his role as FSSA secretary.
But, "Something like that might be the right option here," Roob said.
The creation of a teaching facility connected to Methodist would infuse new life into the hospital, Roob said.
"You really need an environment that is a teaching environment," to help attract faculty to Methodist.
"You might need some other health care organization to come in and stand up a new building," he said. "Who that is, I don't know."
It wouldn't have to be Clarian Health Partners, Roob said.
Methodist officials had discussions with Indiana-based Clarian early last year to explore the feasibility of a partnership.
So-called boutique hospitals and doctor-owned facilities, which specialize in the top revenue producing surgeries and medical care, make things more difficult for hospitals like Methodist, Roob said.
Many Indiana residents head into Illinois for medical procedures involving the heart, hips and back, which generate the top revenues, Roob said.
"All the gravy is going to Illinois; it's not staying in Indiana," he said.
For Methodist to compete, "We've got to create an economically sustainable enterprise," Roob said. "You might need on outside organization that can start afresh."
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