No reply from Beacon, prompts push to freeze funds

SOUTH BEND, Ind. - South Bend Common Councilmember Lori Hamann is calling on the City of South Bend to freeze millions in funding allocated towards development around Beacon Memorial Hospital.

On Tuesday, ABC57 reported Beacon Health will move Medicaid patients from several of its facilities to partnering clinics, Health Linc and Heart City Health. 

Council member Hamann tells ABC57, she's concerned that the City of South Bend has partnered with Beacon, providing a $28.9 million taxable bond to construct more than 900 structured parking spaces, site preparation and a potential skyway at its future Beacon Integrative Health & Lifestyle District.

In lieu of their recent transfer of Medicaid patients, Hamann wants the City to hold the money until Beacon can fully explain the situation.

"This is ill advised if Beacon, is in fact, in a poor financial position," she said in an email to ABC57, stating this decision is an "irresponsible use of taxpayer dollars." 

President of the Indiana Hospital Association, Brian Tabor, agrees that Beacon's decision is financial, referencing low Medicaid reimbursement in Indiana and nationwide. 

"When you look at the payment to hospitals, the base rate has not been increased in 30 years," he said. 

City Spokesperson, Allison Zeithammer, responded that these changes are necessary to "ensure quality health care access for all residents," saying the transformation efforts in South Bend's downtown will create good paying jobs. 

"We are disappointed that Councilmember Hamann continues to oppose this transformational investment and is confusing a state policy issue with a local one," added Zeithammer. 

NOTE: State Representative Maureen Bauer told ABC57 News that Beacon Health will move Medicaid patients from seven of its facilities. A representative from Beacon said that number is incorrect but declined to give us a specific number.