Taylor Manor Becomes Part Of Sheppard Pratt

By Jacqueline E. Burrell



While retaining title to its property and facilities, Taylor Manor Hospital in Ellicott City recently signed an agreement leasing all of its programs and services to Sheppard Pratt Health System, Maryland's largest provider of psychiatric and behavioral health care services.

Following three months of negotiations, the two psychiatric facilities reached an accord late last month.

Dr. Bruce Taylor, Taylor Manor's medical director, began a search in January for an affiliation partner to strengthen the 55-acre campus' financial status.

"The reimbursement climate for psychiatric services has become increasingly difficult," states Dr. Taylor in a written statement. "After much soul searching, our family of owners decided that it was preferable to find an organization who could introduce economies of scale as part of its larger organization in order to assure the perpetuation of what we have built over the past 70-plus years. We have seen several other private psychiatric hospitals in our state succumb to bankruptcy over the past decade, and we were determined not to experience that fate."

Though there has been some improvement in the last couple of years, "access to insurance (for psychiatric services) is still much more restrictive than on the medical side," notes Bonnie Katz, senior vice president of business development for Sheppard Pratt. "The length of a hospital stay used to be four months. It's now reduced to a matter of days."

The impact can erode the financial viability of a facility, said Katz.

The agreement between Taylor Manor and Sheppard Pratt allows Sheppard Pratt the opportunity to expand its programs in Howard County. In addition to operating an outpatient clinic in Columbia called Waystation, Sheppard Pratt will now be able to provide inpatient and related psychiatric services on the Taylor Manor campus.

"We are delighted that we have been able to craft this agreement, which will preserve the legacy of Taylor Manor and the delivery of services to the community it has served for so many years," said Dr. Steven S. Sharfstein, president and chief executive officer of Sheppard Pratt Health System.

The lease with Taylor Manor "will run through the next decade," said Katz. Dr. Bruce Taylor will remain as the hospital's medical director, she added.

The Taylor family has operated Taylor Manor Hospital since 1939. With a license for 92 psychiatric beds, Taylor Manor also operates a residential treatment center, special education school, adolescent crisis and respite services, partial hospitalization programs and a counseling center.

Last year, Taylor Manor served 1,544 inpatients in its various programs, provided 4,522 outpatient services and had gross patient revenues of $11.2 million. The Taylor Health System employs 295 staff.

Serving 30,000 patients annually, Sheppard Pratt is Maryland's largest provider of psychiatric and behavioral health services, with program offerings in 13 Maryland jurisdictions and Virginia. Headquartered in Towson, its flagship campus is home to Sheppard and Enoch Pratt Hospital, which is licensed for 322 psychiatric beds. Combined with its affiliated agencies, the Sheppard Pratt Health System projects patient revenues of $116 million for this fiscal year.

The agreement between Taylor Manor Hospital and Sheppard Pratt becomes effective on July 1.