Review: Expansion of Regions Hospital is 'not in the public's interest'

Regions Hospital is appealing to Minnesota lawmakers to approve an expansion, despite a Minnesota Health Department review casting doubt on the plan.

The state review says the hospital's proposal to add 100 new beds by 2040 is "not in the public's interest." The department questions assumptions behind the growth plan, saying it could lead to a capacity arms race among hospitals.

State Health Economist Stefan Gildemeister told lawmakers Wednesday that changes should be made to the hospital's plan to avoid driving up health costs.

"Fee-for-service still drives incentives to put patients into beds. So the more beds there are, the greater likelihood patients will be hospitalized," Gildemeister said.

Regions President Megan Remark said the hospital operates at a higher patient capacity than industry recommendations and needs to expand to fulfill its mission.

"Sixty-five percent of Regions inpatients come from our emergency department. Those are people that land at our door because of unexpected circumstances. Nobody wakes up every morning thinking they're going to wind up in the emergency department. We have to take care of those patients," Remark said.

The Regions plan includes a combination maternity, surgical and mental health care beds. But the state review says the hospital would help serve the area's medical needs by accelerating its plan for inpatient mental health service.