Blue Cross Calls for Broader Input on Hospital Capacity.

New Report Shows Continued Expansion

EAGAN, Minn., July 28 /PRNewswire/ -- Blue Cross and Blue Shield of Minnesota has asked the Citizens League to bring together health care stakeholders and develop policy recommendations on the impact of hospital capacity on health care in Minnesota. This action follows a Blue Cross study that shows a continued pattern of growth among Minnesota hospitals, focused in a few specialties.

"Metropolitan hospital facilities are continuing to expand and build at a fast pace, especially for specialties like cardiac care," said Michael Morrow, senior vice president of business development and network management for Blue Cross. "More public discussion is needed by all affected parties regarding the kind and type of health care we want and need in Minnesota. We're pleased to take this step to initiate this expanded dialogue."

Blue Cross, the state's largest insurer, has asked the Citizens League, a non-profit, independent public policy group, to create an expert study panel from all stakeholders, conduct independent research, involve citizens, and come up with recommendations for addressing hospital capacity issues. The intent of the study is to present information on hospital expansion and encourage broader public discussion of the issues related to expansion. "As a community, we have the opportunity to build the health care system we want, but we need broader community input to define and support that vision," Morrow said.

"Healthcare is a critical public policy issue for Minnesotans," said Sean Kershaw, president of the Citizens League. "Minnesota depends on high quality healthcare to sustain our high quality of life - and we can't allow rapidly increasing costs to put either of these in jeopardy. The Citizens League is excited by the opportunity to be part of the solution in looking at this issue. Blue Cross' work sets the stage for a larger effort to engage citizens and other stakeholders in this effort.

The Blue Cross study released today, called "Hospital Expansion in Minnesota: Is Growth Worth the Cost?" inventoried expansion plans since 2002 and benchmarked Minnesota hospitals against national averages.

  Key findings of the report:

  -- One-third of Minnesota's hospitals are growing. The report cited 56 of
     148 Minnesota hospitals are planning or conducting new building or
     expansion projects since 2002 totaling $1.78 billion, continuing a
     sharp upward trend. The majority of expansion projects are in the Twin
     Cities metropolitan area.

  -- Much of the expansion occurs in a few specialties, for which Minnesota
     already exceeds the national average. For example, Minnesota has 28
     percent more cardiac intensive care beds than the national average and
     yet 40 percent fewer psychiatric beds than the national average.

"We can make better informed decisions about the kind of hospital care we build so that it will result in higher quality, lower prices and better access," Morrow said. "But it will take all of us working together for the benefit of everyone."

EDITOR'S NOTE: For a complete copy of the report, e-mail Joel at [e-mail] ; it should be available on our web site July 29: http://www.bluecrossmn.com/ .

Blue Cross and Blue Shield of Minnesota, with headquarters in the St. Paul suburb of Eagan, was chartered in 1933 as Minnesota's first health plan and continues to carry out its charter mission today: to promote a wider, more economical and timely availability of health services for the people of Minnesota. A not-for-profit, taxable organization, Blue Cross is the largest health plan based in Minnesota, covering 2.6 million members in Minnesota and nationally through its health plans or plans administered by its affiliated companies. Blue Cross and Blue Shield of Minnesota is an independent licensee of the Blue Cross and Blue Shield Association, headquartered in Chicago. Visit http://www.bluecrossmn.com/ .

CONTACT: Joel Swanson of Blue Cross and Blue Shield of Minnesota, [phone], or cell, [phone]

Web site: http://www.bluecrossmn.com/