Northfield Hospital + Clinics will close its Long Term Care Center at Northfield Hospital this fall, due to financial challenges and lack of available staff.
This does not impact other operations of Northfield Hospital and NH+C’s medical services.
NH+C will work with each resident and their support person of choice to select an alternative placement that meets their individual needs and choices. NH+C will provide assistance in the relocation process, and there will be no cost to residents or families.
NH+C will work with affected staff to explore other job options within NH+C with another local employer. We will provide resources to help LTCC staff during this transition.
The decision by NH+C’s Administration and Board comes as NH+C – like hospitals across the state – faces significant challenges. NH+C lost several million dollars in 2022 as expenses significantly outpaced revenue from services. In the Long Term Care Center alone, it costs significantly more to provide care than payments for the service cover.
“This is a painful decision, but it’s the best decision under difficult circumstances, to keep NH+C strong enough to serve our communities well,” says NH+C President & CEO Steve Underdahl. “An organization can’t sustain ongoing heavy losses and continue to operate effectively.”
The decision is part of an overall review of services at NH+C to ensure the organization can serve the community for generations to come. NH+C’s Administration and Board consider several criteria as they analyze service lines: finances, mission, and commitment to serving local communities. They also consider whether a service is available from other providers in the region.
Healthcare organizations across the U.S. are under serious pressure from four converging trends: worker shortages; increased costs; flat payments; imbalance of government and private payors. Similar actions are occurring across the state and around the country.
NH+C is following rules set by Minnesota law to manage the closure. The process is expected to be complete by October 5. NH+C is working with the state’s Department of Human Services (DHS) and Minnesota Department of Health (MDH) to ensure compliance with state law. DHS regulates the management of skilled nursing facilities in Minnesota, with specific requirements and timelines that must be met when closing a facility.
“We will make this transition as comfortable as possible for residents and families,” Underdahl says. “We’re proud of the excellent care our dedicated Long Term Care staff has provided, especially during the very challenging years of pandemic. We will do our best to support our colleagues as they face this transition, too.”
The Long Term Care Center is a 40-bed unit at Northfield Hospital. It opened in 1963 as the H.O. Dilley Skilled Nursing Facility in the hospital then-located on Second Street (now Way Park). It was originally built with a $250,000 bequest from Minnie Dilley. The center has received five-star ratings over the years from Centers for Medicare and Medicaid (CMS), based on health inspections, staffing, and quality of resident care.
NH+C is city-owned, but it is not city-funded. All NH+C funds come from the services NH+C provides. No city funds have ever been used to build or run the Long Term Care Center.
NH+C’s 2022 net revenue was $119.7 million. Net expenses were $128.8 million.
