Froedtert Health shuttering units at two hospitals

Froedtert Health, which is experiencing shrinking operating margins in Wisconsin's health care system, closed a mental health unit this month at a hospital and plans to shut down the birth center of another hospital by June 1.

Gerry Steele, a spokeswoman for Froedtert Health in Wauwatosa said via email on Friday that the company "is adapting proactively to changing market conditions" to maintain long-term stability.

Steele explained that the organization's adaptation strategies to financial headwinds in the industry include maximising resources, reducing costs and streamlining processes throughout the organization. Froedtert Health had previously announced a hiring ban for certain non-clinical jobs.

Froedtert Health reported a 1% margin of operating profit on revenue of $1.74 billion in the first half of its fiscal period for the period ending December 31, 2022. This compares to a 5.7% margin of operating profit in the same period last year.

In recent years, the margins of health care systems have been squeezed due to rising costs for supplies and wages while revenues have remained relatively flat.

Froedtert Health shut down the behavioral health unit of Froedtert Menomonee Falls Hospital on May 12. Steele stated that the executives at Froedtert made this decision after a careful review of their options. They decided to focus on providing outpatient behavioral healthcare services for patients who are eligible.

She said that the Froedtert & the Medical College of Wisconsin network is committed to the health and wellbeing of the people we serve in the many diverse communities. We will continue to serve behavioral health patients even after the unit has closed, making sure they get the best care possible.

According to the Milwaukee Hospital Utilization Report, Froedtert Menomonee Falls Hospital will have 800 psychiatric hospitalizations by 2022. This was the only Froedtert Health facility that reported psychiatric hospital admissions.

Aurora Psychiatric Hospital, Wauwatosa reported 4,561 admissions for 2022. The Clement J. Zablocki Medical Center had 1,078.

Rogers Behavioral Health does not provide data for the Milwaukee Hospital Utilization Report. It also operates inpatient behavioral units in metro Milwaukee.

The Baby-Delivery Unit at Froedtert's Holy Family Memorial in Manitowoc will close on June 1. Steele stated that in order to qualify as a high-performing birth center, the hospital must deliver twice as many newborns as they do now.

She said that statistically, if more babies are delivered in a birthing center every year, then the care is better and safer. Our community deserves to receive the safest and best care possible, but due to the decreasing birth rates, we will not be able sustain this beyond June 1'

According to the Milwaukee Hospital Utilization Report, there were 52 deliveries of babies at Holy Family and 68 admissions in obstetrics.