Are pediatric emergency wards too costly to maintain?

Medstar claims that as a nonprofit institution with limited funds, it had no choice other than closure.  These actions align to current trends in hospital management and represent the latest innovations in pediatric care.

A:

"In the era of the global budget in the state of Maryland, their reply makes no sense. Our revised all-payer system emphasizes population and community health, which this decision has jeopardized. The pediatric unit was losing about $200K a year, but pediatrics is not a profitable business. And it’s also small change compared to Medstar’s status as a six billion dollar medical system. Ken S, the CEO, has been making $5 million a year. Sam Moskowitz is making $1.2 million."

–Dr. Anna Reed, former pediatrician at Franklin Square

"We have near misses every day here. We do not have the dedicated, credentialed, trained clinicians and staff going down from doctors, nurses, techs even down to the unit secretary that knew what they needed to do to take care of these patients. Pediatric room 17 was a well-oiled machine. When a really sick child came through, everybody assembled, everybody knew what they had to do, and they made sure that was taken care of. This is a disaster."
–Mary Scott

"I have a few questions to Medstar. Before they closed this unit. Did they cut the bonuses of their administrators? Did they do away with any of their jobs? This has to stop. This is a good example of why maybe we might need universal healthcare. Everyone in this state, everyone in this country deserves good quality healthcare that is affordable. Over 50 percent of these children were Medicaid recipients. Is that why they closed this unit? That makes me mad. We care for childcare!" 
–Donna Hines, local resident

"When children are turned around on an observation unit in one or two days and returned to the community and to their homes instead of being admitted to the hospital, it no longer fuels a for-profit machine that can bill for very highly profitable inpatient stays. And so instead of being rewarded for the efficiencies in this system, pediatricians and staff were punished by being fired. And that’s wrong."
–Dr. Richard Bruno, former resident physician at Franklin Square

"I’m not a hospital administrator, I don’t know anything about balance sheets to know what is running in the red or in the black. But at the very least, the community has to be at the table. This was done behind closed doors and it was announced after the decision had been made. And that’s not how an institution like this, that receives hundreds of millions of dollars of public money every single year, should act. It’s not a bakery that can open and close whenever it wants. It’s a hospital. And it happens to take care of a lot of people who don’t have anywhere else to go."
-Resident physician at Franklin Square