The decision to pursue this integration was approved by the boards of directors of both hospitals based on a recommendation from a steering committee that includes the CEOs/presidents, board members and physicians from both hospitals.
Final agreement and approval of the integration, including completion of all regulatory reviews, will take about 12 months. For the most part, it will be business as usual at both hospitals during that time frame.
Edwin O. Pecht, chairman of the board at BRMC, and David Prince, chairman of the board at OGH, said today’s announcement marks a new beginning for two long-time, highly respected hospitals that share common missions, values, and cultures.
“Locally driven and orchestrated, this action is being taken ‘to create something by the region, for the region,’” said Pecht. “It will help ensure access to vital medical care and health services for more than 150,000 area residents.”
“The integration will preserve and strengthen community healthcare throughout the region,” said Prince. It will also allow two separately licensed acute-care facilities to benefit from the advantages of operating as a regional healthcare system.”
George E. Leonhardt will continue to serve as president and CEO of Bradford Regional Medical Center and Timothy J. Finan will remain president and CEO of Olean General Hospital. It is the expressed intent of both hospitals’ boards of directors that Timothy Finan be appointed president and CEO of the parent company.
According to Finan, both hospitals will continue to build on their long histories of delivering patient-centered care to their respective communities. “Our commitment to quality care is demonstrated daily on an inpatient, outpatient and emergency basis in Olean and Bradford,” Finan said. “As part of an integrated, regional health system with increased resources, we’ll be able to provide patients with access to even greater care.”
Leonhardt said the integration will be structured to ensure that each organization maintains its separate corporate existence without a loss of identity for either hospital. “We will both retain those special qualities that have made us respected and dependable healthcare providers, remaining true to our roots of high-quality care and outstanding service with a hometown, personal touch,” said Leonhardt.
The goals and benefits of the integration include:
Both hospitals will retain separate boards of directors to oversee organizational licensing requirements and provide quality oversight, physician credentialing, strategic planning, and recommendations regarding annual operating and capital budgets.
The two hospitals will also continue to maintain separate and independent, not-for-profit foundations governed by their respective boards to oversee fundraising efforts and support each organization’s mission. Donors can continue to make gifts to a specific hospital, department or program through the foundations, as they have in the past.
The integration will be achieved through the work of a parent company – an umbrella organization – that will oversee governance and management of the system with the goal of moving the two hospitals as close to operating as a single entity as possible.
A new board of directors of the parent company will be named to govern the overall management and operation of the integrated system. This board will be chosen by and comprised of members of the two hospitals’ boards.
Finan and Leonhardt said the intent of both hospitals is to establish a sleek, engaged, and informed governance structure, representing as complete a consolidation of authorities as possible while still maintaining corporately distinct hospital subsidiaries and valuable local community input.
Approval and implementation of the integration is expected in about one year following a comprehensive due-diligence review and analysis by both hospitals’ boards of directors, completion of all regulatory reviews and legal approvals, and the adoption of a definitive agreement.
This action is consistent with a national trend of hospitals seeking cooperative relationships and taking necessary steps to ensure their patients have access to efficient, cost-effective and high-quality care. Stroudwater Associates, a leading national healthcare consulting firm, estimates that nearly one-half of the 4,900 hospitals in the U.S. are currently in multi-hospital-system arrangements, and dozens of discussions are underway regarding new relationships. Between 1998 and 2005, more than 1,100 U.S. hospitals were involved in similar integrations.
In New York State, the Commission on Health Care Facilities in the 21st Century (also known as the Berger Commission) recently recommended numerous closures, conversions and consolidations to “rightsize” hospitals and nursing homes in the state to appropriately respond to community needs for high-quality, affordable and accessible care, with meaningful efficiencies in delivery and financing that promote infrastructure stability. While not mandated by the Commission, the proposed integration of the Olean and Bradford hospitals is in accord with its recommendations.
Bradford Regional Medical Center is a state-of-the-art, 114-bed acute-care hospital and 100-bed adjacent nursing home and a network of inpatient, outpatient care centers and home health services in northwest Pennsylvania. A new $15 million Outpatient Services Center opened in 2007 on its Bradford, Pa., campus, launching Centers of Excellence in Cardiology, Oncology/Hematology, Behavioral Health and Surgical Services, with Neurosciences and Sleep Disorders as well as Medical Aesthetics as premiere services. In 2008, a $3.5 million project involving the Emergency Department renovation and expansion was completed.
Olean General Hospital, founded in 1898, is a 186-bed community hospital in Olean, N.Y. providing healthcare to a service area of approximately 100,000 residents. The hospital provides a comprehensive array of programs and services. Olean General Hospital has been designated a Thomson Reuters 100 Top Hospitals Performance Improvement Leader. For more information, visit the Olean General Hospital website at www.ogh.org.