BY ELIZABETH EAKEN, Times of Northwest Indiana 
eeaken@nwitimes.com

GARY | A doomsday scenario from Methodist Hospitals officials that the Northlake campus is in danger of closing within two years is sending shock waves through Gary and the Northwest Indiana medical community.

"The statement from Methodist Hospital officials that they might actually be forced to close their Northlake campus was as unexpected as it would be unfortunate for all of the patients who rely on the Gary hospital for their health care needs," said Robin Carlascio Porter hospital spokeswoman. "There are no simple or easy answers as to the impact such a closure would have on Porter."

Said Mylinda Cane, spokeswoman for Community hospitals in Munster, "No one hospital of the Community Healthcare System currently has the capacity to provide all the services that would be needed to care for the patients served by Methodist. Our hospitals already have high occupancy."

Hospital officials and the Gary Common Council held a hearing Wednesday to present the facts and answer questions. And Methodist officials stressed they are trying to keep Northlake open.

The hospital's financial situation is bleak. The facility is owed $53.5 million dollars from the Disproportionate Share Hospital program and $14 million in reimbursements from the Indiana Family and Social Services Administration for services provided under the Hospital Care for the Indigent program. The agency is withholding the funds until the hospital can prove it is a sustainable operation.

Methodist President James Berg said the hospital's 2005 losses amounted to about $23.6 million.

Thomas Kruse, vice president of strategy and information services for Methodist, said the hospital board was presented Monday with the information about the state of the Northlake Campus.

"The point is we're trying not to close," Kruse said. "If we keep operating like we are, it's not sustainable."

Kruse said fears of staff reductions are premature and would be the last resort. He said Methodist will attempt to move staff into vacant positions.

Doctors and employees of the hospital filled the council chambers. Many expressed frustration with the current hospital administration. Several said nurses are leaving for equal-paying jobs at other hospitals because of job dissatisfaction, and no one is addressing the problem.

Dr. Darryl Fortson told the Common Council the current hospital administration isn't concerned with the spirit of the hospital and community. He said the financial and nursing crises can be fixed, but nothing will improve if there is no trust with the administration.

Hospital physicians took a vote on whether they support a change in hospital leadership, according to Fortson. He said 80 voted in favor of a change in leadership, 15 voted against a change and 15 abstained.

Berg told the crowd there is no intention to close Northlake. In fact, he said, Methodist officials want to take the facility to a higher level of quality in health care delivery.

"Our board was asked to put together a multi-point recovery plan. For now it's more of a concept," Berg said.

Officials want to focus on what they call Scenario C, which would make Northlake a 150-bed mostly medical hospital and eliminate elective surgery services. Trauma care would continue, as would obstetric and neo-natal care.

But that plan needs some revision, Berg said

Gary Mayor Scott King told the council he spent nearly an hour in a teleconference meeting last week with hospital officials discussing an action plan for the future. He couldn't understand how the administration came up with the plan for the recovery in less than a week.

"I find it unconscionable that after I left my office yesterday, a reported financial recovery plan was presented to the press," King said.

King said he called Mich Roob, secretary of the Family and Social Services Administration, just before the meeting Wednesday evening.

"He informed me any sustainable business plan must incorporate Northlake Campus service for the citizens of Gary. He also said he was speaking on behalf of the governor," King said.

King brought up a federal consent decree signed by the hospital under the mayoral administration of Richard Hatcher.

The decree, King said, requires parity among the Southlake and Northlake campuses. King advised the board he is ready to go to court to fight any attempt to violate the decree.

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