Sunday, July 25, 2010
Memorandum of Understanding between KMHD and Centura Health
A Memorandum of Understanding was signed on July 22, 2010 at the Kremmling Memorial Hospital Board of Director's meeting. Gary Campbell, CEO of Centura Health and Bill Widener, CEO of Kremmling Memorial Hospital signed the MOU.
President of the Board of Directors, Kent Whitmer explained: "An MOU is a recitation of what each party's understanding are as we go forward and try to ultimately reach and affiliation, a partnership or some sort of arrangment where we are working together [on delivering healthcare in Granby, in particular regarding the proposed Middle Park Medical Center Project by Kremmling Memorial Hospital District] ... "
"Kremmling Memorial Hospital is staying"
Although a recent poll from Sky Hi Daily News shows that the vast majority of responders believe the proposed Middle Park Medical Center Project by Kremmling Memorial Hospital is needed and a good idea,
( http://apps.skyhidailynews.com/utils/polling/poll_results.php?poll_ident=1978a )certain minority (and appreciated) perception exists that the hospital in Kremmling might one day disappear because of the measured decision to also provide services on the east side of Grand County with the proposed Middle Park Medical Center.
There are several reason why the hospital in Kremmling must remain in Kremmling and even more reasons why the propossed Middle Park Medical Center will actually provide the resources necessary to not only provide services to the Kremmling neighbors to the east side of the county, but to also provide the means to continue and grow the hospital services on the west side of Grand County. The full intention of everyone involved in the planning process is to have both the hospital in Kremmling AND the Middle Park Medical Center in Granby.
First of all, it is important to note that the hospital is needed in Kremmling. Sure, there are not a lot of people on the west side, (approximately 80% of the entire county population resides on the eastern portion), but the residents and guests of the Kremmling area still need Emergency care and always will. (We also figure that a significant population within the Kremmling area can be re-captured, as we develop and enhance services).
In order to provide emergency care, a hospital must have radiology services, laboratory services and a clinic. From there it's just a simple step up to provide patient beds. (Further more, it is believed that improved billing systems, electronic medical records, the continuation of retaining extraordinary medical providers and other medical professionals, will actually prove to recapture locals who had stopped patronizing KMHD years ago for one reason or another. Yes, we are working hard to give those people legitimate reason to come back and utilize their hospital. In fact, we have testimonials galore of people who believe they or their family have received very high levels of care, with unusually compassionate and caring providers and high-technology).
Additionally, the hospital simply CAN NOT move and discontinue current services in Kremmling and maintain it's business model. That drastic and unimaginable move would require CMS (Centers for Medicare and Medicaid) approval--a vital part of KMHD's revenue matrix. (see: http://www.cms.gov/) Doing so would also alter another revenue stream, so vital to the financial operations of the hospital--Critical Access designation. (see: http://www.coruralhealth.org/programs/cah/coloradocahs.htm )
So, by vitue of maintaining two revenue channels, the mere thought of building the propossed Middle Park Medical Center Project in Granby and discontinuing services in Kremmling automatically becomes counter-intuitive.
KMHD CEO reminds all citizens and guests of Grand County, that "the hospital is not leaving Kremmling now, while we are developing the proposed Middle Park Medical Center in Granby, nor after." Every effort and intention of the administration and the community elected board of directions is directed towards a county-wide, community oriented view of managing and providing sustainable and viable healthcare systems.
The hospital board believes we are approaching this project very thoroughly. (Keep in mind this has been in the works for well over 12 years!) No stone has gone unturned. Diligence has been applied in every single aspect, from feasibility studies to community feedback forums and more. It is this well-thought-out approach, with a community wide perspective that seeks to retain healthcare services locally and keep them managed and controlled locally, that fuels the drive and energy of so many professionals and volunteers, government officials and citizens engaging in thoughtful discussion and forward-moving actions to provide healthcare.
( http://apps.skyhidailynews.com/utils/polling/poll_results.php?poll_ident=1978a )certain minority (and appreciated) perception exists that the hospital in Kremmling might one day disappear because of the measured decision to also provide services on the east side of Grand County with the proposed Middle Park Medical Center.
There are several reason why the hospital in Kremmling must remain in Kremmling and even more reasons why the propossed Middle Park Medical Center will actually provide the resources necessary to not only provide services to the Kremmling neighbors to the east side of the county, but to also provide the means to continue and grow the hospital services on the west side of Grand County. The full intention of everyone involved in the planning process is to have both the hospital in Kremmling AND the Middle Park Medical Center in Granby.
First of all, it is important to note that the hospital is needed in Kremmling. Sure, there are not a lot of people on the west side, (approximately 80% of the entire county population resides on the eastern portion), but the residents and guests of the Kremmling area still need Emergency care and always will. (We also figure that a significant population within the Kremmling area can be re-captured, as we develop and enhance services).
In order to provide emergency care, a hospital must have radiology services, laboratory services and a clinic. From there it's just a simple step up to provide patient beds. (Further more, it is believed that improved billing systems, electronic medical records, the continuation of retaining extraordinary medical providers and other medical professionals, will actually prove to recapture locals who had stopped patronizing KMHD years ago for one reason or another. Yes, we are working hard to give those people legitimate reason to come back and utilize their hospital. In fact, we have testimonials galore of people who believe they or their family have received very high levels of care, with unusually compassionate and caring providers and high-technology).
Additionally, the hospital simply CAN NOT move and discontinue current services in Kremmling and maintain it's business model. That drastic and unimaginable move would require CMS (Centers for Medicare and Medicaid) approval--a vital part of KMHD's revenue matrix. (see: http://www.cms.gov/) Doing so would also alter another revenue stream, so vital to the financial operations of the hospital--Critical Access designation. (see: http://www.coruralhealth.org/programs/cah/coloradocahs.htm )
So, by vitue of maintaining two revenue channels, the mere thought of building the propossed Middle Park Medical Center Project in Granby and discontinuing services in Kremmling automatically becomes counter-intuitive.
KMHD CEO reminds all citizens and guests of Grand County, that "the hospital is not leaving Kremmling now, while we are developing the proposed Middle Park Medical Center in Granby, nor after." Every effort and intention of the administration and the community elected board of directions is directed towards a county-wide, community oriented view of managing and providing sustainable and viable healthcare systems.
The hospital board believes we are approaching this project very thoroughly. (Keep in mind this has been in the works for well over 12 years!) No stone has gone unturned. Diligence has been applied in every single aspect, from feasibility studies to community feedback forums and more. It is this well-thought-out approach, with a community wide perspective that seeks to retain healthcare services locally and keep them managed and controlled locally, that fuels the drive and energy of so many professionals and volunteers, government officials and citizens engaging in thoughtful discussion and forward-moving actions to provide healthcare.
"Why Neenan?"
KMHD is working with The Neenan Company, selected as the design/build team by Request For Proposal, (RFP) through the Grand County Rural Health Network, (which included Kremmling Memorial Hospital representation and board approval). As required, the RFP was published in late 2005. Dozens of firms competed. After much investigation, Neenan was chosen. Out of 27 Critical Access Hospitals, [KMHD is a Critical Access Hospital], Neenan has been involved with several including: Lamar, Trinidad, Burlington, Brush, Holyoke, Del Norte and Ledville—about 20% of Colorado’s Critical Access Hospitals. (For a definition of Critical Access Hospitals and a map of Colorado Critical Access Hospitals, visit: http://www.coruralhealth.org/programs/cah/coloradocahs.htm ) Further confidence in Neenan came from their experience in the county with the school projects they had been involved with.
MARKET ANALYSIS
June 2010
The last market study/financial feasibility report was done in 2007, based on census data from 2000. The economy had also changed significantly since the 2007 report, requiring an update. 2010 census projections were estimated and considered in the report.
Stroudwater Associates, (www.stroudwaterassociates.com), was chosen by the hospital board of directors as the independent research firm to re-assess the project and provide the new results. This report has been completed and is now in the process of being audited by an independent accounting firm.
Murray says the results of the report are favorable to a smaller facility than planned in 2007 and that it is economically viable to go forward with the project.
The last market study/financial feasibility report was done in 2007, based on census data from 2000. The economy had also changed significantly since the 2007 report, requiring an update. 2010 census projections were estimated and considered in the report.
Stroudwater Associates, (www.stroudwaterassociates.com), was chosen by the hospital board of directors as the independent research firm to re-assess the project and provide the new results. This report has been completed and is now in the process of being audited by an independent accounting firm.
Murray says the results of the report are favorable to a smaller facility than planned in 2007 and that it is economically viable to go forward with the project.
PROJECT UPDATE: JUNE 9, 2010
Kremmling, Colorado – Kremmling Memorial Hospital District is continuing to make progress on the proposed Middle Park Medical Center project, with the goal of providing a variety of needed healthcare services in East Grand County sometime in 2012.
Recent developments of the project include the process of acquiring capital financing, auditing recently completed third-party market-analysis, to determine viable service lines, (those services that have enough market demand to warrant investment and expect reasonable return), and analyzing financial feasibility studies; ultimately for the approval of the financing company, which will be the true launching point for this significant community-oriented and initiated, long–term healthcare endeavor.
On July 22nd, a MOU (Memorandom of Understanding) was signed by the President of Centura Health and the KMHD CEO. The agreement, although not legally binding, is thought to be a significant development and a positive sign of colaboration between Centura and KMHD.
“We are hopeful to join forces with Centura in order to bring the highest quality of care possible and the most requested and financially reasonable services to Grand County,” noted Jeff Miller, VP of the KMHD Board of Directors.
While important components of developing such an important capital project are moving along favorably, hospital leaders are responsibly quick to clarify that anything can happen between now and financing approval and that any number of variables might affect the development and the time-line of the project.
“We have a team of exceptional professionals working on this project and a dedicated board of directors who want to see both the survival of the hospital in Kremmling and the development of services in East Grand. We are confident and very motivated to make this project work,” Bill Widener, CEO of KMHD, said. “We are seeing a growing number of supporters who are realizing that what we are pursuing is most likely the best possible option for the development and sustainment of community –managed and operated healthcare.”
Widener kindly asked that Grand County residents, second-home owners and guest, “Be patient with us and know we are working hard every day to sustain current operations and to bring more and better healthcare to all of Grand County.”
“We’re getting closer to bringing these community healthcare needs to fruition and the future looks bright,” and he adds, “but remember that there are no guarantees on anything; in life, in business, in healthcare, (especially in this day and age),” he confessed.
“We need the support and encouragement of both communities [East and West Grand] to make this happen – to make healthcare accessible for everybody; their guests and their neighbors, whether that neighbor be to the east or to the west of them.”
Progress has also been made with land planning and building design. Recent preliminary adjustments have brought the square footage to approximately 37,000. In the plans developing around in as early as the late 90’s, propelled by such admirable and valuable efforts of numerous Grand County Commissioners, various municipality planners, town counselors, the Grand County Rural Health Network founders and successors, chambers of commerce, business owners and so many more, it was closer to 42,000 square feet.
Regardless of the immediate proposed square feet, there is room for growth and development as community medical need dictates. After all, the desire for Kremmling Memorial Hospital is to not only provide for as many needs as reasonable and possible now, but to plan for the care of future generations, who will live, work and/or play here.
Recent developments of the project include the process of acquiring capital financing, auditing recently completed third-party market-analysis, to determine viable service lines, (those services that have enough market demand to warrant investment and expect reasonable return), and analyzing financial feasibility studies; ultimately for the approval of the financing company, which will be the true launching point for this significant community-oriented and initiated, long–term healthcare endeavor.
On July 22nd, a MOU (Memorandom of Understanding) was signed by the President of Centura Health and the KMHD CEO. The agreement, although not legally binding, is thought to be a significant development and a positive sign of colaboration between Centura and KMHD.
“We are hopeful to join forces with Centura in order to bring the highest quality of care possible and the most requested and financially reasonable services to Grand County,” noted Jeff Miller, VP of the KMHD Board of Directors.
While important components of developing such an important capital project are moving along favorably, hospital leaders are responsibly quick to clarify that anything can happen between now and financing approval and that any number of variables might affect the development and the time-line of the project.
“We have a team of exceptional professionals working on this project and a dedicated board of directors who want to see both the survival of the hospital in Kremmling and the development of services in East Grand. We are confident and very motivated to make this project work,” Bill Widener, CEO of KMHD, said. “We are seeing a growing number of supporters who are realizing that what we are pursuing is most likely the best possible option for the development and sustainment of community –managed and operated healthcare.”
Widener kindly asked that Grand County residents, second-home owners and guest, “Be patient with us and know we are working hard every day to sustain current operations and to bring more and better healthcare to all of Grand County.”
“We’re getting closer to bringing these community healthcare needs to fruition and the future looks bright,” and he adds, “but remember that there are no guarantees on anything; in life, in business, in healthcare, (especially in this day and age),” he confessed.
“We need the support and encouragement of both communities [East and West Grand] to make this happen – to make healthcare accessible for everybody; their guests and their neighbors, whether that neighbor be to the east or to the west of them.”
Progress has also been made with land planning and building design. Recent preliminary adjustments have brought the square footage to approximately 37,000. In the plans developing around in as early as the late 90’s, propelled by such admirable and valuable efforts of numerous Grand County Commissioners, various municipality planners, town counselors, the Grand County Rural Health Network founders and successors, chambers of commerce, business owners and so many more, it was closer to 42,000 square feet.
Regardless of the immediate proposed square feet, there is room for growth and development as community medical need dictates. After all, the desire for Kremmling Memorial Hospital is to not only provide for as many needs as reasonable and possible now, but to plan for the care of future generations, who will live, work and/or play here.
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