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Hospital Expansions in Buffalo, N.Y., and Baton Rouge, La., Contribute to Recession Resilience
Date:1/26/2009

While Building Boom Declines in Some Regions, These Markets Remain Stable, According to New Reports from HealthLeaders-InterStudy

NASHVILLE, Tenn., Jan. 26 /PRNewswire/ -- HealthLeaders-InterStudy, a leading provider of managed care market intelligence, reports that while expansion plans in many regions of the country have halted because of the economic downturn, strong health system sectors in Buffalo, N.Y., and Baton Rouge, La., are positioning hospitals in these markets to not only weather the economic downturn, but also continue expansion plans.

In Buffalo, state mandates have forced the consolidation of several hospitals, including two of the area's largest health systems--Kaleida Health and Erie County Medical Center--which will be united to create the Great Lakes Health System of Western New York. According to the recent Buffalo Market Overview, the restructuring means fewer beds in the area, as well as significant grant dollars from the state for complying with the mandate, which puts local hospitals in good financial position. The move has also enabled Kaleida to begin work on a $150 million heart and vascular center.

"The effort toward consolidation also puts health systems in Buffalo in a strong position to negotiate with health plans for better reimbursement," said Carolyn McMeekin, director of Market Overview analysis for HealthLeaders-InterStudy.

In Baton Rouge, increases in patients and revenue following Hurricane Katrina have propelled expansion plans. According to the recent Baton Rouge Market Overview, the popularity of physician-owned specialty hospitals in the Baton Rouge market has also forced health systems to adopt strategies to compete with these facilities for higher-profit, shorter-stay surgical procedures. As a result, hospitals are looking to develop specialized centers or align w
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SOURCE HealthLeaders-InterStudy
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