Avera Marshall Privatization
If you have comments or individual questions, please contact us at info@averamarshall.org
Questions and Answers Regarding the Privatization of Avera Marshall
Your health is one of the most precious and valuable things you have. At Avera Marshall Regional Medical Center, we know the importance of being there when you need us. As we look to the future of care in the region, Avera Marshall Regional Medical Center has begun a journey to explore privatization or a sale of the medical center to Avera. Many consumers may have questions about how it affects them and their community. To better understand what is happening, here is some information containing questions and answers to help explain the process. Thank you for your interest in this process of creating the next era of health care in the Marshall region.
Should people in the Marshall area be concerned about the future of receiving health care in Marshall?
Actually, customers can feel more confident being backed by a proven health care leader like Avera. Their philosophy of preserving communities and having local access is the model they have demonstrated time and time again in many communities in the upper Midwest.
Who will decide what happens in Marshall?
Ultimately, the city council will make a determination on a sale. Following that, a board would be formed to provide governance. Typically, that is a combination of community members and Avera staff.
Is Avera and Avera McKennan the same thing?
Yes and no. Both are based in Sioux Falls, SD. Avera is the corporation and Avera McKennan is one of five regional facilities. Avera McKennan is the largest of the five regions and manages numerous clinics, hospitals and health care facilities.
Why is privatization being considered now?
The Avera Marshall Board of Directors and the city council have identified health care as a community priority. Right now, Avera Marshall is in a strong position financially and in the quality and scope of services being provided to the region. Avera Marshall is planning for the future now, looking at ways to stay strong.
What does being part of a system do to help sustain health care for the future?
The next decade will be very challenging for health care organizations. Payment reforms are changing the way health care providers are paid, and workforce projections predict shortages of doctors and other health care workers. Systems are better positioned to meet these challenges. Avera Marshall’s management relationship with the Avera system over the last four years has proven to be beneficial for the organization and the community. Ownership would take that relationship to the next level. By being proactive, Avera Marshall can ensure that quality health care will be available in Marshall.
What are some of the positive outcomes because of the affiliation with Avera?
Avera Marshall has seen many benefits from its partnership with Avera over the last four years. Avera has helped to recruit doctors to Marshall and supported the development of new services like eICU CARE©, behavioral health services and telemedicine. All of these additions help to keep health care services available locally. The strength of the Avera system has led to nearly $1.5 million in savings for Avera Marshall over three years in areas like group purchasing, recruitment contracts, reference lab and mobile nuclear medicine services and property and liability insurance. The Avera Rural Health Institute has assisted Avera Marshall in receiving more than $200,000 in grants. Avera has also given financial gifts to support the Marshall community projects, such as a $25,000 donation to the Liberty Park project and a grant to purchase weight-training equipment for students with disabilities at Southwest Minnesota State University.
Why isn't Avera Marshall exploring other partners?
The board of directors, city council, Blue Ribbon Task Force and leadership at Avera Marshall all feel that Avera is the right health care partner for the community. Four years ago, an extensive process was used to explore what system might offer the best partnership. Avera's vision and culture were found to be the best match for then Weiner Memorial Medical Center. Avera shares the vision of making the Marshall hospital a regional health care center and has proven to be a great partner at the local level. The partnership with Avera has demonstrated success in service expansion, physician recruitment, technology enhancements and planning for continued growth.
Would local control be maintained?
Avera's commitment to keeping health care local means focusing board membership at the local level. Avera would want the vast majority of members of the Avera Marshall Board to be community members from in and around the Marshall region. Avera would not anticipate interrupting the current membership, provided the members are willing to continue to serve. In addition to the area's local representation on the Avera Marshall Board, Avera Health would anticipate two or three member representatives on the Avera Marshall Board, including a representative from Avera's sponsors.
Would the quality of care/service change?
We anticipate that our services and continuum of care would be made stronger and deeper due to our strengthened tie to the system.
When will a decision be made?
It could take months or years, but most often, decisions like this take about a year or slightly longer. The board of directors passed a resolution at the July 2008 board meeting to begin exclusive negotiations with Avera immediately for a change in ownership on or about July 1, 2009.
How many hospitals in Minnesota are privately owned versus publicly owned?
The Minnesota Hospital Association website shows that there are 150 hospitals in the state. Ninety-two (92) are considered private, non-profit; 9 are county owned; 17 are city owned; 3 are city-county owned; 11 are owned by districts; 1 by a sole proprietor; and 1 is a for-profit corporation for a total of 134 acute care hospitals. In addition there are 2 federal non-acute care hospitals; 10 state-operated treatment centers; 2 other private nonprofits; and 2 U.S. Public Health Services hospitals, bringing the grand total to 150.
How much money is Avera Marshall worth?
Independent valuations will need to be completed to determine the value of Avera Marshall.
If Avera buys the medical center, does that include the nursing home and home care?
Yes. Morningside Heights Care Center and Home Health Care are part of the medical center.
Will any employees lose their jobs?
Employees would continue in their current positions. Employment issues would be handled according to all government regulations and the policies of Avera Marshall. The policies of Avera Health are very similar to those of Avera Marshall Regional Medical Center, as both strive for employee satisfaction and a positive working environment. Management of employees is done at the local level. Avera Marshall will continue to handle all personnel files, background checks, payroll functions, and any other HR functions.
Is there a plan for more doctors and specialists?
Avera Marshall has a full time recruiter and continues to work on the plan for acquiring additional medical staff, including specialists. One avenue that has worked successfully is the use of telemedicine which links the patient and physician via video. Several consults are done in this way.
