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MCDH Community Conversation series off to a good start 4/7/06 On March 30, MCDH hosted the first in a series of “Community Conversations” covering the topic of the hospital’s options for the future, and more specifically whether affiliation with a larger healthcare system may be on the horizon. The evening began with a brief overview of the hospital’s current financial status. As of the end of February, MCDH was projected to be $970,000 short of break-even for the fiscal year. While the projected loss is serious, it is better than it would have been without the program changes and accomplishments of the past many months. Participants reviewed a summary of the past year’s activities. The criteria used to guide the decision making process for program changes were developed in a community-wide process involving the hospital’s many stakeholder groups (medical staff, employees, patients and the public). Criteria included:
MCDH Board member Jim Hay read a statement explaining the Board’s decision to bring in an interim CEO. This statement was covered in depth in last week’s Advocate-News and Beacon (4/6/06). The evening’s discussion then moved on to the hospital’s options for the future. Evaluation is underway for the options of Critical Access Hospital designation, another Parcel Tax initiative, remaining independent as a stand-alone hospital, and affiliation with a healthcare system. The Board must consider short-, medium-, and long-term solutions to the hospital’s financial challenges. Many short-term solutions have been implemented. Critical Access Hospital designation and Parcel Tax decisions have the potential to help the hospital’s bottom line in the medium-term. Affiliation, if pursued, would be a long-term part of the solution, as negotiations between hospitals and systems typically take 12 to 18 months to complete before any benefits are realized. Among the healthcare systems being considered for local affiliation are Adventist Health, Sutter Health, Catholic Healthcare West and Brim Healthcare. The first three are healthcare systems comprising many hospitals throughout the Western U.S. region, while Brim is a healthcare management company that manages several hospitals nationwide. Each of these has sent a representative to meet with the Affiliation Subcommittee to learn about each other’s priorities and philosophies toward healthcare, and to see the wide range of possible options open to MCDH. Board President Charlene McAllister stressed that the hospital must be fiscally healthy prior to and during an affiliation relationship. Given the many variables in an affiliation arrangement, no decision has yet been reached as to whether this is the best alternative for our community. An Affiliation Subcommittee is expected to make its recommendation to the Planning Committee in May. Affiliation arrangements can vary in their levels of involvement with a larger system. The options range from a “loose network” affiliation to a management contract to a lease of the hospital to outright sale of the hospital assets. Each alternative involves different consequences for medical staff, hospital employees, patients and the community. Should the Board decide to pursue an affiliation that includes lease or sale of the hospital, community support will be needed in the form of a 67% affirmative District-wide vote. About 30 people attended the evening’s discussion, with participants freely asking questions and providing new ideas for consideration. Questions from participants covered a wide range of topics, including Parcel Tax initiative details, the Rural Health Clinic license opportunity, public relations efforts, and more. The informal setting allowed for positive, open discussion of each item. MCDH is hosting this series of Community Conversations to provide a forum for the community to learn about affiliation and its implications. The next Community Conversation is scheduled for Wednesday, May 10, 2006 at 5:30 p.m. in the MCDH Redwoods Room.
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