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

Main Category: Litigation / Medical Malpractice
Article Date: 06 Feb 2005 - 19:00 PDT

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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 D.C. 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).

"Reprinted with permission from kaisernetwork.org kaisernetwork.org. You can view the entire Kaiser Daily Reproductive Health Report, search the archives, or sign up for email delivery at www.kaisernetwork.org/dailyreports/repro The Kaiser Daily Reproductive Health Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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