SEATTLE, Feb. 16, 2012 – Today, officials from Swedish Visiting Nurse Services (SVNS) announced plans to close its services effective April 27, 2012. SVNS is a division of Swedish that provides in-home medical services, such as in-home nursing, physical and occupational therapy, infusion therapy, nutritional therapy, and hospice.
Having experienced significant operating losses for three years in a row, SVNS implemented a turnaround plan last June. While that effort resulted in several operational improvements, it was unable to address the underlying problems with the SVNS business model: a high wage and benefits structure, productivity issues and overtime costs combined with low reimbursement from commercial payers. SVNS was projected to lose $12 million in 2012, which would put its total loss since 2009 at $51 million.
“Knowing there are other local agencies available to effectively meet the need for home-health and hospice services in the community, we concluded that the magnitude of losses is unsustainable over the long term and that the only option was to close the service,” said Jon Younger, M.D., medical director for SVNS. “Our priority now is to work with other local agencies to ensure a seamless transition for our patients.”