Published on Wednesday, 30 November -0001 00:00
Paynesville Area Health Care System's Hospital Board of Directors announced at its meeting Oct. 27, that they will explore restructuring options to continue to be able to provide a sustainable health-care system.
Following the recommendations from a recent strategic planning meeting, financial and organizational studies, along with an internal senior housing collaborative committee, the Board of Directors took no formal action, but have asked for additional information so that they will be able to make responsible decisions for the future of PAHCS.
Driven by the financial need to make significant capital improvements to many of its buildings in order to meet the current and future expectations of patients and residents, the Board of Directors have asked for the Executive Council to gather the following information:
* Release a Request for Proposal (RFP) to see if there are prospective buyers interested in purchasing the Hilltop Care Center and/or all senior housing entities.
Transition 700 Stearns Place from Independent Senior Living to an Assisted Living facility.
* Investigate the option of retaining ownership and operation under a separate corporation; and
* Conduct a feasibility study to build a new hospital/clinic.
This task will take several months. A communication plan is being put in place to keep patients, residents, families, employees, and members of our hospital district informed throughout this process.
Small, rural health-care organizations rely heavily on state and federal reimbursements and they are being faced with significant challenges with the health-care cuts and legislative changes. "The practical value of strategic restructuring is a way to respond to both challenges and opportunities while continuing our commitment as an independent health system. It is very clear through our Board of Directors that our focus remains on our mission of delivering quality care to our patients and residents. We are dedicated to remaining an independent health-care system and meeting the future health-care needs of our communities," stated Bobbe Teigen, CEO.
"Unfortunately, there are several financial disadvantages to having long-term care facilities as part of a Critical Access Hospital structure", explained Kirk Johnson, CFO. "The amount of additional debt necessary to renovate our facilities to meet our patient and resident needs is beyond our financial capabilities. We need to look at ways in which we can grow and continue to provide multi-specialty services and yet remain financially sound".
Questions, concerns or comments are welcome and may be directed to any member of the PAHCS Board of Directors, or by contacting Bobbe Teigen, CEO at (320) 243-7700.