Wisconsin Hospital Expands Labor Unit Amid Closures

Article Summary –

The Western Wisconsin Health hospital in Baldwin, Wisconsin, is expecting a significant increase in births this year due to the closing of labor and delivery units in many rural hospitals across the state and the country. With federal funding, the hospital is expanding its labor and delivery unit to accommodate the influx of patients, even though the expansion is not viewed as a good business plan due to high costs and low Medicaid reimbursement rates for OB-GYN services. The hospital’s CEO, Eilidh Pederson, believes the investment in maternal care is essential for the community and hopes that their model can pave the way for sustainable maternal health care in rural communities.


Increasing Births at Western Wisconsin Health Hospital Amid Obstetric Unit Closures

Western Wisconsin Health (WWH) hospital in Baldwin, Wisconsin, a small community of 4,000 residents, anticipates delivering nearly 300 babies this year, a significant increase from the 100 babies delivered five years ago. Remarkably, some patients are traveling up to 80 miles to give birth at the facility.

Across the United States, the American Hospital Association reports an alarming trend of rural hospitals closing their labor and delivery units. Nearly half of such hospitals had stopped delivering babies in 2020, with at least 89 rural obstetric units shutting between 2015 and 2019. Simultaneously, Wisconsin saw an 11% decline in hospitals delivering babies from 2019 to 2020, according to the March of Dimes.

WWH CEO Eilidh Pederson states that in the past two years, five hospitals in northwest Wisconsin have closed their labor and delivery units, pushing WWH to a critical point in rural obstetrical care. Nonetheless, the hospital is expanding its labor and delivery unit with federal funding to accommodate the increasing number of patients.

‘The Right Thing to Do’

Despite the financial burdens hospitals face, WWH has chosen to expand its labor and delivery unit. Given the low Medicaid reimbursement rates for OB-GYNs, this is not a typical business move, considering that Medicaid covers nearly half of all U.S. births. Yet, WWH has taken this step to uphold community responsibilities and address a pressing human rights issue.

Funding for their $7 million expansion, which will increase the department from two to five beds, is partially covered by a $1 million federal grant, community grants, and donations, amounting to $3.6 million. The hospital will bear the remaining costs.

A Foundational Investment

With the new labor and delivery unit set to open in June, WWH will be capable of delivering 450 babies annually. A significant portion of new patients are from the Eau Claire and Chippewa Falls regions, where two hospitals and 19 clinics are closing.

To maintain its operations, WWH emphasizes efficiency, employing certified nurse midwives and maintaining lean staffing without understaffing. The hospital’s partnerships, such as sharing a physician with nearby Hudson Hospital and partnering with Minnesota Children’s Hospital for telehealth services, are also vital.

According to Pederson, the federal funding symbolizes a new partnership and a potential model for investing in rural maternal health. She emphasizes the importance of prioritizing this type of health care as foundational to human health and life itself.


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