Washington Evening Journal
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Henry County Health Center hands over the keys
Trustees approve final resolution of operating lease agreement with Great River
Liam Halawith
Jun. 16, 2021 3:09 pm, Updated: Jun. 18, 2021 9:31 am
MT. PLEASANT — The Henry County Board of Trustee’s passed the final resolution approving the operating lease agreement with Great River Health Systems Tuesday afternoon.
In a unanimous vote the Henry County Health Center trustees leased all of their assets and employees, excluding the ambulance services, to Great River Health Systems in Burlington.
This 11½-year lease comes after nearly two years of accumulated effort by the board to ensure the preservation of health care access in Henry County despite major losses in the hospital’s budget and especially the emergency medical services department.
“Many of us know Great River Health Systems is a trusted partner with a proven track record of strengthening local health care. We have known and worked with Great River Health employees for many years, and its providers and leaders already know and value their commitment to Henry County Health Center,” said Rob Gardner, Henry County Health Center chief executive officer.
As part of the leasing agreement, Great River will retain the assets of the board of trustees and the Henry County Health Center while extending funding to cover the losses in the Emergency Medical Services Department or ambulance services that this next fiscal year are expected to be over $300,000.
However, this leasing agreement comes structured as a lease, not a sale of the hospital meaning that Henry County still retains ownership of those assets.
Another caveat to the plan introduces a board of directors that includes at least five Henry County residents.
The plan includes provision’s that keep Henry County Health Center workers in the Iowa Public Employee Retirement system and keeps their benefits the same.
The leasing agreement allows the Great River Health Systems to compensate for Henry County’s financial shortcoming’s while being able to use their assets in their systems.
“Whereas the board desires to ensure the lasting provision of health care in Henry County and recognizes that continuing operations as a free-standing entity risks the long-term loss of services in the community and whereas the board has maintained a long-standing relationship with Great River Health Systems to provide health care and administrative services,” reads the agreement.
“HCHC is currently in a strong position and acting now to prepare for the future will ensure we all will have the health care services we need, close to home,” said HCHC board member Carla McNamee.