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RMCHCS Board of Trustees to Explore Strategic Affiliations – October 17, 2012

October 17, 2012 Gallup, NM—Rehoboth McKinley Health Care Services (RMCHCS) acting CEO Roger Gleisner announced today that the RMCHCS Board of Trustees has decided to explore possible strategic affiliations.

“The Board of Trustees is committed to making sure McKinley County and surrounding areas have access to quality health care services that are both affordable and local.  It is our fiduciary responsibility to position and strengthen the hospital so it can deliver those services for years to come,” commented Board Chair, Kathy Head.  Any decision about whether to remain completely independent or to enter into a strategic partnership or affiliation is very difficult and must be made with much deliberation and consideration.  “We are at the beginning of the process, we are exploring our options” said Head.

Six months ago the Board decided to conduct a high level assessment of the organization’s financial and operational issues, industry challenges and strategic market position to determine how it can best meet the community’s future health care needs. The assessment concluded that there is risk associated with staying independent and that there are opportunities associated with strategic affiliations.  The report states, “a well-executed strategic partnership could benefit all stakeholders (McKinley County, providers, employees and community members).”

Most hospital boards across the United States are facing the same challenges and are thinking strategically as to how they can best meet the health care needs of their communities.  Financial instability resulting from the economic downturn, physician recruitment and retention, lower patient volumes, infrastructure and technology needs and the movement away from a fee-for-service reimbursement model to a value-based business model in health care are factors impacting hospitals, from small community hospitals to large hospital systems.

“There is lots of uncertainty about the future of health care. Health care is changing and we are not immune from the changes,” commented Gleisner. The Board’ s objective is to do what is best for the residents of McKinley County and the surrounding area.  “We see this as an opportunity to preserve and improve on the delivery, quality and scope of health care service available in the community.  The hospital is an important community asset and we want to see it thrive rather than just survive,” added Head.

“We will evaluate organizations that best align with our mission and values,” said Gleisner.  This could ultimately result in the development and distribution of a RFP.  No matter what decision is made about strategic partnerships, the future of health care in McKinley County will depend on strong community support.  RMCHCS has appreciated strong community support in the past and trust it will continue into the future.”

RMCHCS is a not-for-profit 501(c) 3 health care network serving rural McKinley County. RMCHCS’ mission is to serve God by making a profound and lasting difference in the health and

quality of life for all people in the community. Certified by The Joint Commission, RMCHCS offers a wide range of medical and diagnostic services including a 69-bed acute care hospital, two outpatient clinics, home health and hospice, behavioral health services and a 20-bed inpatient addictions program.

 

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