Regulatory burdens lead to closure of Parshall clinic
Citing increased regulatory burdens and declining reimbursements among other factors Trinity Health announced Tuesday that it will close Trinity Community Clinic-Parshall and consolidate services with its nearby New Town clinic effective July 1.
“This is a difficult decision, so much so that we actually delayed it for quite some time,” said Thomas M. Warsocki, vice president of physician services. “In light of increasing regulatory demands and declining reimbursements, we’ve had to evaluate the viability of our clinics and services to ensure that the most efficient operations are supporting the most critical needs. Operating expenses in the Parshall clinic have exceeded its revenues for years, and given industry projections and critical priorities within the care system, we can no longer support this resource imbalance.”
Among the regulatory pressures affecting clinic services across the country are federal mandates to implement electronic health information technology i.e., electronic medical records along with increased regulatory costs and flat or declining reimbursement payments from private, federal and state payors.
“Clinic practices are struggling to cope with the changes in the delivery of care,” Warsocki added. “For many providers, neither the staffing nor the economics are sustainable.”
He said Trinity intends to increase the number of providers at Trinity Community Clinic-New Town, which is 19 miles west of Parshall, in an effort to consolidate services offered in the area and better serve the population.