Ely hospital dodges financial threat with federal redesignation

ELY — The financial outlook for a small town's hospital brightened considerably this week, as it received notice that federal officials now intend to reverse an earlier decision to no longer consider the facility a "critical access hospital."

That proposed change of status could have deprived the 21-bed Ely-Bloomenson Community Hospital of critical funding, according to CEO Patti Banks.

The hospital appealed the decision, also enlisting the support of local government officials, including its congressional delegation. A follow-up letter from the Centers for Medicare and Medicaid Services informed local officials this week that upon further consideration, the facility will retain its designation as a critical access hospital.

The previously proposed change hinged on whether the Ely hospital's service area could best be characterized as urban or rural. The town has a population of less than 15,000 people, and its local hospital is located a solid hour's drive away from the next-largest medical facility in Virginia.

Despite its remote setting, federal officials appear to have been influenced to pull the facility's "critical access hospital" designation due to Ely's inclusion in the Duluth-Superior Metropolitan Statistical Area.

In a statement, Banks hailed the confirmation that Ely-Boomenson will continue to be considered a critical access hospital.

"We are grateful for the support of our staff, patients, local state and federal lawmakers and the local community throughout this process," Banks said.

"The reinstatement of our CAH status is a testament to the strength of our communities and our shared commitment to ensuring that everyone has access to the care they need," she said. "We will continue to work diligently to provide the highest-quality care and remain a pillar of health and wellness in our region."

U.S. Sen. Amy Klobuchar, D-Minn., told the News Tribune that any cuts the hospital sustains would be "incredibly difficult."

“Every Minnesotan, no matter their zip code, deserves to have access to the health care they need," she said. "That is why I worked to ensure the Centers for Medicare and Medicaid Services quickly redesignated Ely-Bloomenson as a Critical Access Hospital so that the hospital continues to receive the federal funding it needs."