Washington Regional aiming for Level I trauma center, CEO discusses healthcare financing

Larry Shackelford, CEO of Fayetteville-based Washington Regional Medical Center, has been a strong leader and a big advocate for helping stabilize Arkansas’ complicated healthcare system. Washington Regional is improving community services while battling political and market forces in the world of healthcare financing.

In an interview with Talk Business & Politics, Shackelford discussed one of the biggest challenges facing health systems today: uncertainty.

“The president’s agenda calls for $880 billion of cuts from both energy and the healthcare sector. At the same time, there’s promises to not cut Medicare or Medicaid benefits. A lot of discussion around Medicaid costs and how to manage that,” said Shackelford. “The federal government pays a disproportionate share of Medicaid cost. So that’s something we’re certainly keeping our eye on.”

Shackelford is also keeping an eye on the state’s work requirement waiver to Medicaid expansion.

“There’s talk about rolling back that federal share, which is 90%, to something I’ve read as low as 50% to 75%… I think I would characterize it being really challenging to do long-term planning. Everyone is just kind of taking a wait-and-see approach,” he said.

Shackelford’s hospital was recently reaccredited as a Level II trauma center, a designation that is critical to the region’s healthcare future. Washington Regional is working with UAMS and the Northwest Arkansas Council to become a Level I trauma center, which would provide the region stronger lifesaving interventions with the capacity to handle complex medical emergencies.

That designation would provide critical care and surgical services and capacity for 24/7 access to key medical specialties, including traumatology, advanced orthopedic and hand surgery, general surgery, plastics and maxillofacial surgery, critical care, interventional radiology, and neurosurgery, according to hospital officials. In January, Dr. Peter Fischer joined Washington Regional as medical director of the Washington Regional Trauma Center. Fischer is a leading expert on trauma care and is guiding Washington Regional’s efforts to meet Level I status.

Shackelford said the legislature’s focus on improving maternal healthcare is one of the more certain areas of his industry.

“The Healthy Mom, Healthy Babies Act was a really big deal. And you know, the fact that this will allow Medicaid to reimburse providers for prenatal to delivery and postpartum allow them to be presumed to have coverage while they’re going through that application process. There were some pretty significant reimbursement changes where Arkansas really trailed. I think this is, this is probably one of the top things to come out of the session for sure,” he said.

Shackelford also discussed other legislative activity, including the addition of more residency program slots and the focus on healthcare workforce needs. Watch his full interview in the video below.