Henry County hospital looks to March vote on partnership

MT. PLEASANT - Henry County Health Center will be moving forward with an operational lease with the Great River Health System.

The center's Board of Trustees approved resolutions to enter an operational lease with Great River and to move forward with a special election in March to present the agreement to Henry County residents. Under the lease, Great River will take over operations and control of the hospital, subject to continued oversight of the board.

Board Chair Kent Severson said the board felt it was important to enter a partnership 'in a position of strength rather than go it alone,” which prompted the board to approve a memorandum of understanding at its meeting last month. Severson added he felt the move 'is going to be great” for both residents and employees. He noted the hospital will not be changing its name and employees will remain under the health center through an employee lease agreement.

'Rural hospitals are finding it more and more difficult at this time, and we are finding a way to enhance services and establish long-term viability … using a regional public-private partnership,” Severson said.

Hospital attorney Curt Chase gave an overview of the terms of the agreement. The term of the lease will last for 11½ years, with two renewal rights.

'It's a lease that extends for an excess of 34 years,” Chase said.

Chase noted the lease is not a sale of the hospital. Under the agreement, the current board will lease certain hospital assets and transfer operational assets to Great River, which will operate the facility. The elected board will stay in place and will collect rent from Great River as well as continue to levy taxes.

The board will be expected to use those funds to maintain, repair and replace hospital assets when needed. Should the rent and tax revenue not be enough to cover the costs, Great River has committed to taking on the shortfall and additional expenses.

Employees will remain under the health center and be leased to Great River, which will allow the staff to remain county employees and maintain various benefits including IPERS.

Great River has agreed to continue to maintain the health center's classification as a critical access hospital for a period of time and to continue clinical services for the next four years.

Great River has agreed to help maintain and stabilize the hospital's emergency medical services department, which the hospital had previously attempted to move to a county-run service. Under the agreement, Great River will subsidize shortfalls of the program, up to $1.68 million over five years.

Chase said there are portions of the lease that have yet to be finalized and conditions that must be met before both groups can close on the lease including bringing the agreement to voters.

The board passed both the resolution to move forward with the lease agreement and to bring the agreement to voters in a special election in March unanimously.

During the meeting, CEO Robb Gardner gave an update on the hospital's COVID-19 response.

Gardner said the state has seen hospitalizations go down but the state still had 'a few hard months ahead.” The CEO added he received news through public health that the county would be receiving the Moderna vaccine, which is expected to be approved by the FDA on Thursday. Gardner said staff is already preparing for clinics as early as next week. The hospital is only in charge of vaccinating its employees and staff, he added.

Other business

' The board approved the purchase of Philips Monitoring systems for the former obstetrics and gynecology wing, which will be used for extra COVID-19 beds if necessary. The systems will provide the necessary telemetry equipment. The equipment will cost $150,473.

' The hospital will be moving forward with purchasing three Athena Enterprise temperature detection systems, which will allow the hospital to set up temperature screeners for visitors at entrances. The systems will cost approximately $44,000.