During a
special-called meeting held during the county legislative body’s monthly work
sessions, the Scott County Board of
Acting on a self
imposed directive approved at its July meeting, the full Commission acted on
the Letter of Intent with Pioneer Health Monday night. As presented, the document differed somewhat
from the original Letter of Intent that was presented to the Commission at that
July 18, 2011 meeting; however, it didn’t substantially change. As presented
Monday night, the term of the Letter would be shortened to January 1, 2012,
rather than June 1, 2012, as was originally sought by Pioneer. “We wanted a
term of 90 days, but we agreed on January 1,” stated Community Development
Committee Chairman Paul Strunk. One reason for the
long term of negotiation is the expected time needed to obtain approval from
the State Attorney General. While County Mayor Jeff Tibbals
stated his understanding the process could take 60-90 days, Jack Bryan, interim
CEO of St. Mary’s Medical Center of Scott County, felt it would be shorter.
“It’s my impression that, by statute, the State must respond within 45 days,”
Within the letter, Pioneer lays out its position on key terms to be included in a new lease. Pioneer is seeking a lease with an initial term of fifteen (15) years, with an option for an addition 15 years at Pioneer’s discretion. Pioneer would not be responsible for any liabilities from Mercy Health Systems, or from Health Management Associates, whichever would be in charge of the Hospital at the time of transfer. In return, Pioneer would pay the County $60,000 per month for the term of the lease; however, the County would repay Pioneer $177,000 per quarter for indigent care, resulting in a net profit of $12,000 per year for the County. The final draft also makes clear that Pioneer and the County will be negotiating the lease of the county’s real property, including the hospital and professional buildings, along with the fixtures and any improvements made thereto, but not the operations, which is controlled by Mercy Health Partners or its assignee.
Pioneer states their willingness to hire all current employees at the Hospital, and to honor their tenure at the facility for purposes of accrual of benefits. However, they will be considered to be new hires in the company, effectively eliminating all currently accrued benefits carried over through the Mercy takeover, and accrued through Mercy’s tenure at the Hospital.
Strunk and County Attorney John Beaty made clear that all of the above provisions in the Letter of Intent could be negotiated. “Again, gentlemen (and lady), this is only a framework for negotiation, and it (will be) a long process to come,” stated Strunk.
The Commission voted 13-0, with Commissioner Mike Slaven absent, to enter into the Letter of Intent. No timetable has been set for the future of the negotiating process.