Long Haul Health Care

Attended last night's public meeting about the proposed sale of our community owned hospital to Avera Health System, a Sioux Falls based not for profit corporation. Nice to see the meeting room was nearly full.

It's a very complicated process, and I would encourage anyone who would like to have in depth details on the proposal to review the documents which are all a matter of public record.

Here are MY "take aways" from the meeting:

1. A lengthy negotiation process has taken place and both sides seem satisfied with the proposal for the sale.
2. Outside experts were hired to provide advice to both parties.
3. Taking care of the current employees seems to be one of the top priorities.
4. Insuring continued and expanded long term health care services for our community was THE top priority.
5. The proposed sale maintains local autonomy and local governance with the goal of growing Avera Marshall Medical Center into a regional medical center.

In my opinion, these are all very positive.

What happens now?

The Hospital Board meets on Tuesday, January 20th to consider the recommendation from the Negotiating Committee. The recommendation, which is very detailed, suggests that the City sell both the Hospital and the Nursing Home to Avera Health System. The sale price and process is lengthy and complicated.

It's apparent that the Hospital Board will approve the committee's recommendation and would then forward the proposal to the City Council for their consideration on January 28th. If the City Council approves the proposal in its current form, the sale process would begin immediately and conclude on or about November 2, 2009.

The Mayor and Council must trust that due diligence has been conducted on behalf of the City and the Medical Center. The Council appointed both the Hospital Board and the Negotiating Team. Outside experts were brought on board to assist with the valuation and proposed sale process.

The Council needs to fully understand the proposal, decide on its merits (which appear to be many) and vote to either move forward with the sale (which I believe they should), or, determine a good reason or reasons why not to sell the Medical Center to Avera Health and be prepared to fully explain their apprehensions about the sale.

At last night's meeting, someone suggested that we're not receiving full financial value based on current assets. Our Hospital Board Chairman, Mike Rich, said it best: "We're not going after the highest bidder." He's right on the mark by suggesting that the priority is to find the best possible way to insure continued quality health care for the long haul.

Selling to the highest bidder reminds me of what happened in the mid 90's when I was living and working in Kansas City. The City chose to sell its municipally owned Hospital, Bethany Medical Center, to the then highest bidder: HCA of America, which at that time was the largest private for profit hospital group in the US. Within 18 months, HCA sold the hospital off to one of the local health care competitors, which in turn closed the facility less than 2 years after that sale. The hospital building was later demolished and the land is still vacant 6+ years later.

Avera Health System has a solid reputation of being good corporate neighbors, not "corporate raiders." Their faith based history and principals are solid and they've clearly demonstrated a successful track record with numerous communities throughout the region. I recently chatted with the chamber folks in Aberdeen. Avera- St. Lukes Hospital there has grown considerably over the years. They tell me it's been a wonderful and positive working relationship between the community and its primary health care facility.

The bottom line: negotiations for the sale of the medical center were based on mutual respect and the effort to reach a win-win outcome. This isn't a hostile take over as some have suggested or feared.

Some very dedicated and committed individuals worked long and hard on behalf of the Hospital Board, City Council, and most importantly the residents of our community and region. We need to trust that they represented our best interests, and therefore we need to encourage our City Council and Mayor to move forward with this effort.

Avera Marshall Regional Medical Center is in it for the long haul. Let's make certain that they're successful for every one's sake.

That's my opinion. How about yours?