Hospital narrows lease options

By

Local News

February 27, 2019 - 11:06 AM

Hospital trustees decided Tuesday night not to invite Hospital Corporation of America, the company that currently manages the hospital, to present its version as to what a lease agreement with the hospital might look like.

Loren Korte, chairman of the board, broke a tie between members as to whether to extend the invitation.

Korte came down against giving HCA a chance to return to a lease agreement with the hospital.

Others against the motion were Terry Sparks, John Brocker and Mona Hull. Those in favor of hearing a presentation by HCA were trustees Jim Gilpin, Ryan Coffield and Jeff Johnson.

All board members, however, favored hearing what St. Luke’s of Kansas City could offer in terms of leasing the hospital.

This leaves trustees with the ultimate choice of either remaining with HCA in a management capacity or going into a lease arrangement with St. Luke’s.

 

HCA, and others before it, leased the hospital for many years before the county retook control in 2013.

In a lease arrangement, decisions are made at the corporate level rather than with a local board of trustees. A hospital’s profits flow to corporate with this model, the philosophy being that corporate will invest in a hospital’s upkeep as well as in new equipment and technology. 

The flip side to yielding local control is if the hospital is on hard times, corporate has its back.

The arrangement seemed to work well between HCA and Allen County Hospital, until HCA officials refused to put money toward a new hospital.

County officials severed the lease and appointed a local board of trustees who have had the responsibility of taking the hospital forward. 

The county retained HCA to manage the hospital in the sense that its administrators are HCA employees and as such follow HCA protocols.

 

IN RECENT discussions with both St. Luke’s and HCA administrators, trustees Korte, Sparks and Brocker came away with a more favorable impression of St. Luke’s.

For Sparks, there were two takeaways.

Related
June 26, 2019
March 27, 2019
December 19, 2018
September 20, 2018