US Mining Surge Threatens Local Healthcare

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TL/DR –

Large employers in Elko, such as mining companies, are contracting with a surgery management company to avoid high hospital prices, often coordinating out-of-town care in Salt Lake City. This is creating a shortage of specialist doctors in the community, with well-insured patients often travelling out of town for their care. An out-of-state company that recently opened an outpatient surgery center in Elko accepts the insurance and surgery management plan offered by the mines, Medicare, and veterans and Indian Health Services benefits, and eventually plans to accept all plans, including Medicaid.


‘The Challenge in Primary Care and Hospitals’

Healthcare challenges in hospitals and primary care can lead to significant ripple effects. Employers like mining companies escape high hospital costs by contracting out-of-town care through a surgery management company, mostly in Salt Lake. This solution is, however, not accessible to everyone.

This practice reportedly worsens the shortfall of specialist physicians in the community. It becomes difficult to attract new physicians, seeing that the well-insured patients prefer out-of-town services.

Dr. David Hogle, an Elko-based primary care doctor, explains, “This situation doesn’t encourage new specialists like gastroenterologists to set up practices here. Most paying procedures are sent to Salt Lake, leaving only the Medicare in Elko.”

This scenario could change with the recent introduction of an outpatient surgery center by an out-of-state company. The center, which opened in March, is expected to accommodate all insurance plans, including Medicaid, according to Angela Browning, the center’s business office manager.

Kevin Lutz, the executive vice president at Community Health Development Partners, chose Elko for the first surgery center due to the community’s healthcare needs and high rate of commercial insurance. He believes locals shouldn’t have to travel for supportable health services.

“The beneficial aspect of Elko and perhaps all mining communities is their good benefits that can sustain a business. If you relied on 80 percent Medicaid or Medicare, you couldn’t operate,” remarks Lutz.

The new surgery center aims to attract those leaving town for surgeries, not compete with the local hospital. However, this could lead to reduced patronage of the hospital, resulting in fewer emergency care services, warns University of Nevada’s Assistant Dean of Rural Health, Ackerman.

“We will have an emergency in this community at some point, like we’ve had in the past where you have a mine bus accident, and then all of a sudden the services that you expect at your hospital to take care of your emergency aren’t there,” Ackerman warns, “It’s a problem, and I don’t have a ready solution.”


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