NEW ULM — New Ulm Medical Center (NUMC) closed its residential addiction service unit earlier this month.

A lack of adequate reimbursement forced the closure of the 10-bed residential addiction treatment service that was part of NUMC for nearly 38 years.

The addiction treatment service officially closed earlier this month after the last patient was discharged. In September, NUMC filed with the Minnesota Department of Health a plan to close its residential addiction program. State statute requires a public notice and public hearing before the closure of hospital services. MDH’s Health Regulation Division hosted the hearing to discuss the transition process.

During the hearing, NUMC Director Toby Freier said the reason for the closure came down to cost.

“Our reimbursement for many years has never come close to meeting what our cost investments have been,” Freier said. “We’ve been subsidizing for several years.”

Over the last few years, the cost of the residential addiction program has increased and staff departures made it a challenge to maintain.

Freier said the scale of NUMC’s operation was also relatively small. Most other residential addiction programs have dozens or even hundreds of beds. NUMC’s 10-bed unit was considered minor. It was believed other providers could meet residential needs while NUMC changed focus.

Freier said when the residential unit was open, NUMC would consistently have between 8 to 10 patients. On an annual basis, the residential addiction service unit housed 100 patients a year. The average length of stay was 30 days.

Freier said about 20% of the patients admitted to the residential treatment program were from Brown County.

Though the residential addiction service is closing, NUMC intends to transition to a new service model.

Joe Clubb, vice president of operation for Mental Health and Addiction Service for Allina Health said NUMC will move from a 10-bed residential program to a partial hospital and day treatment program.

Clubb said in this program, patients would sleep at home but would come in for six hours of hospital care during the day. Patients are admitted by a psychiatrist, determining the frequency of care. The program would have a mental health therapist and program assistant.

The partial hospital and day treatment programs were not previously offered at NUMC. Clubb said it is believed this model could reach a great number of people in the community. The goal is to open the partial hospital and day treatment program in early 2024.

“Our goal and commitment is to continue whole-person care,” Freier said. “On one hand we are disappointed about the services ending, but also looking forward to the service we will be able to provide that is not being offered by other systems in the area.”

Multiple members of the public expressed disappointment that substance abuse programs were being underfunded or receiving late payments.

Clubb agreed it was important to lobby on behalf of substance abuse programs to receive enhanced rates.

Freier acknowledged that NUMC reimbursements were nowhere near the cost of operating the residential program. The only reason the program lasted this long is that the NUMC was able to subsidize it through other medical center operations.

In closing the hearing, Freier wished to express his gratitude for the team that served on the residential addiction program for 38 years of work.

“While we are disappointed about the changes that are occurring…I don’t want to miss the opportunity to recognize the exceptional work that has taken place,” Freier said.

He also asked everyone to continue advocating for addiction treatment funding.

“There is a glaring need in rural Minnesota,” he said. “We can all do our part to continue advocating for needed and appropriate funding to sustained services close to our communities.”