With no discussion and somber expressions, Tri-City Medical Center trustees voted Thursday night to indefinitely suspend women and newborn services for the first time in the hospital’s 62-year history, a change that is likely to take effect on Oct. 1.
Though the move was expected — the hospital reports handling fewer than one delivery per day due to shifts in patient referrals to inland hospitals — it was clearly painful for a facility that has been delivering babies day in and day out since it opened its doors in 1961.
After the decision was made, board chair Tracy Younger said it weighed heavily on all.
“We understand the significant impact it will have on expectant mothers and their families, as well as dedicated staff who have tirelessly ed the unit over the years,” Younger said. “We recognize the vital role that the labor and delivery unit plays, and ensuring safe and specialized care during childbirth, and we deeply empathize with concerns and anxieties that this decision may raise within our community.”
The closure is part of a nationwide trend. A recent report from the health care research firm Chartis documented the loss of labor and delivery units in 217 rural hospitals since 2011.
Locally, Paradise Valley Hospital closed its labor and delivery department in 2021, and Palomar Health closed its Poway operation, consolidating services at its Escondido hospital, in June.
In a memorandum published Wednesday, the public district hospital said that the istration is pursuing collaboration with “a variety of potential partners in search of a collaboration that would not only save but grow this service line.”
And a deal, apparently, would not stop at labor and delivery, with the memo stating that discussions with unnamed partners “have broadened to include consideration of more expansive affiliation opportunities.”
While he did not disclose which partners Tri-City is considering, Dr. Gene Ma, Tri-City’s chief executive officer, confirmed when asked that the kind of deal being brokered is along the lines of the one that has been in place at Grossmont Hospital in La Mesa since 1991. That was the year that the Grossmont Healthcare District leased its hospital to Sharp HealthCare, which has run the enterprise ever since.
“That’s obviously the model that looks like it would make the most sense,” Ma said.
In addressing the board Thursday night, the executive said that additional due diligence is required to enter into such an agreement, but said that the intent is to move forward relatively quickly.
“We’re looking for an answer this year,” Ma said. “This board is not dipping their toes anymore; there is no playing around.”
While it remains unclear exactly who Tri-City is considering an affiliation agreement with, a key deal point is resumption of labor and delivery services.
Younger said the board believes such an arrangement is possible.
“As we navigate through this really difficult time, we just want to let you know that we remain committed to finding a sustainable solution and (are) exploring avenues for future reinstatement of these vital services,” Younger said. “I know I can speak for the whole board.”
Like many hospitals across California and the nation, increased labor costs and supply cost inflation have hurt the bottom line.
Tri-City’s financial report Thursday indicated that the hospital operated at a $25 million loss in fiscal 2023 with a $10 million loss projected for 2024, hopefully reaching break even in the 2025 budget year.
Ma said that affiliating with a larger system can help straighten out Tri-City’s balance sheet.
“I think the reality of it is, single-entity district hospitals are going to struggle, if not now, then for the future,” Ma said. “Being part of an integrated-delivery health system, with the resources, the scale of purchasing power, in addition to having specialty care in the right places, that’s what’s needed.”
