With a goal of improving regional access to primary care and advanced services, the boards of Clearfield Hospital and DuBois Regional Medical Center are taking the final step toward a linked organization.
The hospitals announced that both hospital boards have approved a definitive agreement that allows the linkage to move forward. Attorneys for the hospitals have been instructed to seek regulatory approvals for the affiliation from the state Attorney General and the Federal Trade Commission, a process that is expected to take up to six months.
The definitive agreement outlines a corporate and management structure that involves the creation of a parent company that will hold certain reserved powers over DRMC, Clearfield Hospital and Brookville Hospital, a subsidiary of DRMC.
Raymond A. Graeca, president of DRMC, will take the helm of the parent corporation.
This corporation will have a board of directors made up of representatives, including physicians, from each of the hospitals. Dennis L. Merrey, chairman of Clearfield Hospital’s board of directors, will serve as chairman of the parent board. If given regulatory approval, the new corporation and its board of directors will oversee joint efforts in such areas as expansion of services, acquisition of resources and operational efficiencies that benefit all three hospitals.
Each hospital in the system will retain its name, community base, medical staff and board of directors. Past and future community donations designated for each hospital will remain in that hospital’s control and used according to the donor’s wishes.
The definitive agreement is the culmination of more than a year of negotiations and disclosures between the two entities. A group of administrators, physicians and board members worked with well-respected consulting and financial firms to develop a structure that would be agreeable to both hospitals and best serve the respective communities.
“I’m obviously pleased that both boards of Clearfield and DuBois hospitals have approved the definitive agreement and by-laws. This is an important juncture in the linkage process and is the result of over a year of negotiations and work that was accomplished in a cooperative spirit by both sides. We will eagerly await regulatory approval, which will be the final event prior to closing the linkage agreement,” stated Merrey.
He continued, “The real work will then begin as we start the process of linking the two hospitals with the common goal of achieving a high quality, cost effective healthcare delivery system to our respective communities. Since the inception of discussions with DRMC, the goal of Clearfield Hospital’s board has been to be pro-active in the challenging healthcare environment, in which we operate, ultimately seeking to secure, enhance and expand quality healthcare services to the community.”
According to hospital officials, many hospitals throughout Pennsylvania and the nation are seeking these types of links to help maintain a high level of care and financial stability, especially with the prospect of health care reform in the future.
“This is one step toward continuing to provide quality health care close to home for all the residents of the Tri-County Area,” Edward Nasuti, chairman of the DRMC board of directors said. “The combining of DRMC, Clearfield Hospital and Brookville Hospital will allow us to use the strengths of all three of these fine organizations to serve our patients while maximizing the efficiencies of our operations.”
Potential benefits of an affiliation include the ability of both hospitals to recruit physicians and other clinical professionals to the region, as well as improved access to specialists for local residents.