Bacharach looks towards future after announcement of Select Medical acquisition

Galloway Township — Pressures affecting small health care providers across the country are ending the era of rehabilitative care in this area.

The Bacharach Institute for Rehabilitation agreed in September to acquire a Select Medical licensed bed. This will lead Select to build a new rehabilitation hospital and operate under the Bacharach name. As part of the transaction, AtlantiCare will acquire the Bacharach facility adjacent to the Mainland Campus Hospital.

The transaction is pending approval from various state agencies.

Bacharach Chief Policy Officer Richard Kathrins said the deal creates a more sustainable future for rehabilitative healthcare in the region.

“I think the advantage here is that Select brings a lot to the table. They are a national provider of rehab services and have a wealth of resources at their disposal,” Kathrins said. says. “I think Select will be a great partner for the community in the long term. I think there is sustainability and quality there. I think they will do a good job for the community.”

A spokeswoman for Select said details of the new rehabilitation hospital are unknown as it is still in the process of obtaining state regulatory approval. The new facility will provide treatment for a variety of ailments including brain injuries, cancer, spinal cord injuries and stroke.

“Our plan is to build a new state-of-the-art inpatient rehabilitation hospital,” Select spokesperson Sherry Eckenroth said in an email Wednesday. Like Select Medical’s other 30 inpatient rehabilitation hospitals nationwide, including, our commitment is to help patients regain function and independence in daily living.”

Kathrins said Bacharach had been struggling financially for the past few years. Kathrins said the company has struggled with rising regulatory and technical healthcare costs that all hospitals commonly face, which can be particularly challenging for smaller hospitals. . There have also been changes in patient referral rates due to managed care plans and hospitalizations, and the difficulties caused by the COVID-19 pandemic.

“These issues combined created a financial situation that was difficult for us to overcome,” says Kathrins.

Bacharach has left a storied legacy in the region. It was founded in Longport in 1924 and operated as a facility providing rehabilitation care to pediatric patients. It quickly gained a national reputation for its specific pediatric treatments, regularly drawing children and families from Philadelphia to seek out treatments and the restorative sea breezes of the Jersey Shore.

“It all came together and became part of the Atlantic City facility,” Kathrins said. “It became part of the environment.”

Bacharach moved to its current location in Galloway in 1972, three years before the mainland campus of what is now AtlantiCare Regional Medical Center opened. The institute soon moved away from pediatric care to become an adult rehabilitation hospital and was eventually designated by the state as a specialty hospital. It continues to be an adult rehabilitation hospital offering a range of inpatient programs, including: We also continue to provide pediatric care.

One of the more significant challenges facing Bacharach is the growth of managed health insurance plans such as the Medicare Advantage and Medicare Shared Savings programs. Due to stricter regulations on when they can be admitted to rehabilitation hospitals, many patients who would otherwise be treated at Bacharach are denied admission. Kathrins said patients are often referred instead to lower-level care, such as nursing homes, resulting in a depletion of Bacharach’s patients and revenue in the process.

“Patients we consider eligible under Medicare guidelines are considered unsuitable by someone else at the insurance company,” Kathrins said.

Kathrins said he was encouraged that government officials were beginning to notice that facilities like Bacharach had several managed care plans in place.

“The goal there is to reduce costs, so you may not want to send patients to a high-quality rehabilitation hospital instead of a low-cost[facility],” says Kathrins. “A lot of research has been done on outcome values ​​[in rehabilitation hospitals]versus outcomes in nursing homes, etc.”

These financial challenges have been exacerbated by the pandemic. Public health shutdowns implemented in 2020 have reduced attendance at rehabilitation facilities like Bacharach, further reducing facility revenue.

As a small, unaffiliated, nonprofit hospital, Bacharach was vulnerable to these financial challenges, Kathrins said.

“If you look around South Jersey, New Jersey, as a country, you’ll see that the number of independent small hospitals continues to decline,” Kathrins said.

Bacharach’s acquisition of licensed beds is due to the incorporation of smaller hospitals in the area into larger hospitals. Cape May County’s only hospital operator, Cape Regional Health System, entered into a merger agreement with Cooper University Health Care in Camden in December.

“I think there is a growing trend towards consolidation,” says Kathrins. “It’s hard to argue against that.”

Kathrins said Bacharach is optimistic that the Select Medical acquisition could help improve healthcare outcomes in the region. He noted that Select Medical runs his Kessler Institute for Rehabilitation, which U.S. News & World Report ranked him the fourth best rehabilitation hospital in the country. Bacharach providers have previously worked with clinicians at some hospitals and have been impressed with their experience and dedication.

According to its website, Select Medical operates 30 inpatient rehabilitation hospitals and employs more than 7,500 therapists. Based in Mechanicsburg, Pennsylvania, he owns NovaCare Rehabilitation.

“We got to know their clinical acumen, their commitment to the community,” said Kathrins.

Kathrins said the new Select facility will have little continuity with Bacharach and generally Bacharach employees will not be transferred to the new Select facility. There is a gap between the closing of the Bacharach facility and the opening of the new Select Rehabilitation Hospital.

An AtlantiCare spokesperson said in an email Monday that the company has not yet decided for what purpose it will use the Bacharach facility. It will not be used as a rehabilitation facility, but referrals to appropriate providers will be made. The healthcare company didn’t have a timeline for when it would start using the facility following the unsolicited approval by state regulators. The Bacharach name is not retained in operations operated by AtlantiCare.

AtlantiCare spokesperson Jennifer Tornetta said:

That’s not the end of Bacharach as an organization in the Atlantic City area. The Bacharach Hospital Foundation will continue operations after the closure of the Bacharach Institute for Rehabilitation. Kathrins said the foundation can help healthcare in several ways. Perhaps supporting research, creating scholarships, supporting other clinical programs, or partnering with local universities. Kathrins said the foundation is still exploring options.

Kathrins admitted that the acquisition would be difficult not only for current Bacharach employees, some of whom have worked in hospitals for decades, but also for those who have grown attached to Bacharach. , he expressed optimism that the deal would ultimately benefit the residents Bacharach has served for many years.

“It’s a sad time, but I think in the long run this is a good opportunity for sustainability and growth for the community,” Kathrins said. “I think it’s a win-win in the end. Even if it’s hard now, even if it’s sad.”