November 21, 2017 at 6:11 a.m.
Integration agreement approved
Hospital will become IU Health Jay on March 1
Integration agreement approved
Copyright 2017, The Commercial Review
All Rights Reserved
Prepare to say goodbye to Jay County Hospital and hello to IU Health Jay.
Jay County Hospital Board, Jay County Commissioners and Jay County Council on Monday approved resolutions for the hospital to integrate with Indiana University Health. As a result, the process of the transition will get underway immediately, with the facility to officially become the 20th hospital — IU Health Jay — in IU Health’s network on March 1.
Monday’s votes mark the end of a process that has taken nearly a year and the beginning of a new era for healthcare in Jay County. The votes came after extensive presentations that included a look at the steps the hospital’s steering committee took in choosing a path for the future, thoughts from two local health care providers and comments from several IU Health officials.
Dr. Kristy Mount, who served as a member of the hospital’s steering committee and last week was elected chief of staff, said she was focused on finding a partner that would maintain the qualities which attracted her to begin practicing in Jay County 15 months ago.
“There was a great mission of serving Jay County, giving back to the community and putting that as the primary focus of Jay County Hospital,” she said. “That was the main thing that I wanted to see preserved.
“As we move forward into the next 10, 15, 30, 50 years, that spirit of Jay County would stay intact.”
Mount pointed out that when it came down to choosing an organization to partner with — the three other contenders were Parkview, St. Vincent and Lutheran — the primary care physicians at Jay County Hospital were unanimously in favor of IU Health.
One of those was Dr. Frank Vormohr, a Jay County native whose father was a doctor and whose son is contracted to join the hospital’s staff next year.
“I love our hospital,” he said. “I love our community. I really do love Jay County. I want to see us be successful in the future. …
“As a physician, I’m real positive about the future. … I’m really happy we chose IU’s health system.”
IU Health CEO Dennis Murphy touted the strength of that system, the largest in the state, noting U.S. News and World Report’s rankings of Indiana hospitals. Each of the top three hospitals on that list were IU Health facilities, and three more, including Ball Memorial, were in the top 10.
“We don’t believe being big is important,” he said. “We believe taking care of as many people as possible is important because we think we do it the right way.”
He and others also noted IU Health’s partnership with Indiana University School of Medicine, which could lead to training programs at IU Health Jay.
The integration agreement that was set in motion Monday calls for IU Health to spend about $12 million in “integration activities,” with $2 million to $3 million in clinical upgrades within the first year. In addition, $5 million will be contributed to a capital improvement fund, the use of which will be under the control of the new IU Health Jay board.
That new board will be made up of the seven current board members — Dave Littler, Debbie Kummer, Bill Hinkle, Roger Locker, Brad DeRome, Pat Miller and Janet Bantz — and four more to be appointed by IU Health. They will govern IU Health Jay for its first three years, after which the facility will fall under the jurisdiction of the IU Health east central region board that also overseas IU Health Ball Memorial Hospital and IU Health Blackford. That board will have at least two Jay County residents as members, and a physician who provides services full-time in Jay County will be named to IU Health’s East Central Regional Employed Physicians Executive Committee. Current Jay County Hospital CEO Dave Hyatt will become president of IU Health Jay.
In the agreement, IU Health also commits to maintaining the hospital’s current range of services, as long as they fulfill the area’s needs and are financially viable.
An additional provision addresses the obstetrics program specifically, guaranteeing that it will remain in place as long as two doctors who perform childbirth deliveries, including cesarean sections, remain on staff. If at any point staffing falls below that level, IU Health will spend at least three years recruiting qualified replacements before considering any changes to the program.
“We are really excited about investing in the obstetrical program,” said Jeff Bird, president of IU Health’s east central region. “I am a firm believer, and I am committed to the citizens of Jay County getting the best healthcare locally.”
The agreement also calls for IU Health to:
•Retain all Jay County Hospital staff members on their current contracts or new mutually agreed upon contracts.
•Pay the cost of closing government retirement plans, estimated between $6 million and $9 million. All employee benefits will be protected, and they will be eligible to join IU Health’s plans.
•Maintain the existing management contract to oversee operation of Jay Emergency Medical Service.
The bulk of Jay County Hospital Foundation’s funds, with the exception of about $12,000 that is earmarked for specific uses, will be transferred to The Portland Foundation.
Both Littler and Bird referred to the services — the list includes urology, radiology, telestroke, cardiology, cancer services, dermatology, rheumatology, gynecology, orthopedics and pathology — provided locally in partnership with IU Health. Expanding on that partnership, Bird said, seemed like a logical next step.
“We believe strongly that your hospital’s priorities align with our mission and vision,” Bird added. “We value what you do here. We want to support what you do here. And we think we’re in a great place to be able to do that as partners moving forward.”
Four members of the public spoke during the public hearing portion of the meeting, with Portland Mayor Randy Geesaman, former hospital board president Dean Jetter and Ken Bantz all supporting the integration agreement. Roy Adams of Adams Physical Therapy encouraged IU Health to work with local providers, both those who are part of the organization and those who aren’t, to provide the best possible care to the community.
The decision to integrate with IU Health came after nearly a year of research, discussion and negotiation in the face of mounting financial losses. Jay County Hospital’s expenses outpaced revenue by nearly $8 million in fiscal year 2017, which ended Sept. 30.
Ice Miller attorney Kevin Woodhouse, serving as counsel for Jay County Hospital, said another $3.5 million in losses are projected for 2018. He added that the issue is not isolated to Jay County, as more than 80 rural hospitals in the United States have closed their doors since 2010.
IU Health’s goal, the agreement notes, is to use the resources of its network to improve efficiency and make the hospital financially sustainable. Its six other critical access hospitals — those that deliver services in order to improve access in rural areas — are IU Health Bedford, White, Paoli, Tipton and Blackford.
All Rights Reserved
Prepare to say goodbye to Jay County Hospital and hello to IU Health Jay.
Jay County Hospital Board, Jay County Commissioners and Jay County Council on Monday approved resolutions for the hospital to integrate with Indiana University Health. As a result, the process of the transition will get underway immediately, with the facility to officially become the 20th hospital — IU Health Jay — in IU Health’s network on March 1.
Monday’s votes mark the end of a process that has taken nearly a year and the beginning of a new era for healthcare in Jay County. The votes came after extensive presentations that included a look at the steps the hospital’s steering committee took in choosing a path for the future, thoughts from two local health care providers and comments from several IU Health officials.
Dr. Kristy Mount, who served as a member of the hospital’s steering committee and last week was elected chief of staff, said she was focused on finding a partner that would maintain the qualities which attracted her to begin practicing in Jay County 15 months ago.
“There was a great mission of serving Jay County, giving back to the community and putting that as the primary focus of Jay County Hospital,” she said. “That was the main thing that I wanted to see preserved.
“As we move forward into the next 10, 15, 30, 50 years, that spirit of Jay County would stay intact.”
Mount pointed out that when it came down to choosing an organization to partner with — the three other contenders were Parkview, St. Vincent and Lutheran — the primary care physicians at Jay County Hospital were unanimously in favor of IU Health.
One of those was Dr. Frank Vormohr, a Jay County native whose father was a doctor and whose son is contracted to join the hospital’s staff next year.
“I love our hospital,” he said. “I love our community. I really do love Jay County. I want to see us be successful in the future. …
“As a physician, I’m real positive about the future. … I’m really happy we chose IU’s health system.”
IU Health CEO Dennis Murphy touted the strength of that system, the largest in the state, noting U.S. News and World Report’s rankings of Indiana hospitals. Each of the top three hospitals on that list were IU Health facilities, and three more, including Ball Memorial, were in the top 10.
“We don’t believe being big is important,” he said. “We believe taking care of as many people as possible is important because we think we do it the right way.”
He and others also noted IU Health’s partnership with Indiana University School of Medicine, which could lead to training programs at IU Health Jay.
The integration agreement that was set in motion Monday calls for IU Health to spend about $12 million in “integration activities,” with $2 million to $3 million in clinical upgrades within the first year. In addition, $5 million will be contributed to a capital improvement fund, the use of which will be under the control of the new IU Health Jay board.
That new board will be made up of the seven current board members — Dave Littler, Debbie Kummer, Bill Hinkle, Roger Locker, Brad DeRome, Pat Miller and Janet Bantz — and four more to be appointed by IU Health. They will govern IU Health Jay for its first three years, after which the facility will fall under the jurisdiction of the IU Health east central region board that also overseas IU Health Ball Memorial Hospital and IU Health Blackford. That board will have at least two Jay County residents as members, and a physician who provides services full-time in Jay County will be named to IU Health’s East Central Regional Employed Physicians Executive Committee. Current Jay County Hospital CEO Dave Hyatt will become president of IU Health Jay.
In the agreement, IU Health also commits to maintaining the hospital’s current range of services, as long as they fulfill the area’s needs and are financially viable.
An additional provision addresses the obstetrics program specifically, guaranteeing that it will remain in place as long as two doctors who perform childbirth deliveries, including cesarean sections, remain on staff. If at any point staffing falls below that level, IU Health will spend at least three years recruiting qualified replacements before considering any changes to the program.
“We are really excited about investing in the obstetrical program,” said Jeff Bird, president of IU Health’s east central region. “I am a firm believer, and I am committed to the citizens of Jay County getting the best healthcare locally.”
The agreement also calls for IU Health to:
•Retain all Jay County Hospital staff members on their current contracts or new mutually agreed upon contracts.
•Pay the cost of closing government retirement plans, estimated between $6 million and $9 million. All employee benefits will be protected, and they will be eligible to join IU Health’s plans.
•Maintain the existing management contract to oversee operation of Jay Emergency Medical Service.
The bulk of Jay County Hospital Foundation’s funds, with the exception of about $12,000 that is earmarked for specific uses, will be transferred to The Portland Foundation.
Both Littler and Bird referred to the services — the list includes urology, radiology, telestroke, cardiology, cancer services, dermatology, rheumatology, gynecology, orthopedics and pathology — provided locally in partnership with IU Health. Expanding on that partnership, Bird said, seemed like a logical next step.
“We believe strongly that your hospital’s priorities align with our mission and vision,” Bird added. “We value what you do here. We want to support what you do here. And we think we’re in a great place to be able to do that as partners moving forward.”
Four members of the public spoke during the public hearing portion of the meeting, with Portland Mayor Randy Geesaman, former hospital board president Dean Jetter and Ken Bantz all supporting the integration agreement. Roy Adams of Adams Physical Therapy encouraged IU Health to work with local providers, both those who are part of the organization and those who aren’t, to provide the best possible care to the community.
The decision to integrate with IU Health came after nearly a year of research, discussion and negotiation in the face of mounting financial losses. Jay County Hospital’s expenses outpaced revenue by nearly $8 million in fiscal year 2017, which ended Sept. 30.
Ice Miller attorney Kevin Woodhouse, serving as counsel for Jay County Hospital, said another $3.5 million in losses are projected for 2018. He added that the issue is not isolated to Jay County, as more than 80 rural hospitals in the United States have closed their doors since 2010.
IU Health’s goal, the agreement notes, is to use the resources of its network to improve efficiency and make the hospital financially sustainable. Its six other critical access hospitals — those that deliver services in order to improve access in rural areas — are IU Health Bedford, White, Paoli, Tipton and Blackford.
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