Minnesota regulators are weighing whether to allow the state's first stand-alone, for-profit inpatient rehabilitation facility as a solution to hospital overcrowding.
Texas-based Nobis Rehabilitation submitted plans Aug. 1 to build a 60-bed rehab hospital in Roseville, arguing that Minnesota's hospitals and nursing homes have reduced their step-down beds just as demand has increased. The company estimated that Minnesota is short 130 rehab beds and will need more as its population ages.
"Based on our extensive experience with inpatient rehabilitation, we believe there will be significant value in approving the … hospital," said Chester Crouch, Nobis' president, in a letter to the Minnesota Department of Health.
The proposal creates a dilemma for state health economists who must advise the Legislature on whether to permit the project by exempting it from Minnesota's moratorium on hospital construction. The state historically relied on nonprofit providers to build a lower-cost health care system, but it might need for-profit companies to solve a worsening problem.
Minnesota learned the hard way over the past two winters that its hospitals are vulnerable to overcrowding. Understaffed nursing homes left hospitals unable to discharge recovering patients, which in turn created backlogs in emergency care that lasted hours or even days.
Nobis could ease the pressure by giving hospitals another place to send patients who no longer need inpatient care but remain too frail to go home. Six Twin Cities hospitals operate their own step-down units, but others have closed them in recent years.
State Sen. Jim Abeler, R-Anoka, said Minnesota needs new ideas and that he was encouraged by Nobis' pledge to provide discounted or free care to low-income patients: "Some people might be worried about a for-profit compared to a nonprofit, but at this point I think its an all-hands-on-deck problem." he said.
Many patients go to nursing homes for short-term rehab after surgeries or hospitalizations for severe injuries or illnesses. Minnesota also has two long-term acute care hospitals — Regency in Golden Valley and St. Joseph's in St. Paul — that provide extended rehab.