Washington, D.C., Birthing Center Almost Closes Because of Financial Troubles, Malpractice Premiums

From: art fougner, md (dean@thehuffpeople.net)
Fri Feb 4 09:55:32 2005


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Washington, D.C., Birthing Center Almost Closes Because of Financial Troubles, Malpractice Premiums

http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=27971

The only independent birthing center in Washington, DC, almost closed last week because of a "perfect storm of financial troubles," the Washington Post reports. The DC Birth Center, which was established in 2000, provides gynecological and obstetrical services for low-income women, parental guidance and general care for their children. The goal of the center is to help reduce the city's infant mortality rate -- which is at least 50% higher than the national average -- by providing perinatal care for mothers and children. Last week, the center was faced with a 30% increase in malpractice premiums and thousands of dollars in overdue reimbursements and unpaid bills for services, in addition to continually low reimbursement rates from Medicaid managed care plans and insurance programs, according to the Post. To help avert a closure, district and managed care officials provided payment, and a "major supporter" of the center advanced additional funds, according to the Post. However, clinic founder, president and CEO Ruth Watson Lubic said that the center is "not out of the woods" because the board still must raise half of the center's $1 million budget (Levine, Washington Post, 2/3).





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