In a forward thinking move, Twin Lakes Regional Medical Center (TLRMC) is considering a strategic affiliation with another healthcare company.
Hospital officials, including TLRMC CEO Wayne Meriwether, Board Chairman Trevor Ray and several hospital board members were present at Tuesday’s Grayson County Fiscal Court meeting and entered an Executive Session with magistrates, Judge-Executive Kevin Henderson, and County Attorney Jeremy Logsdon, to discuss the possibility of TLRMC seeking a strategic affiliation, or remaining independent.
“The board of directors and hospital leadership are proactively exploring a potential affiliation with another healthcare organization to strengthen the hospital’s position and provide improved care and resources to take the hospital forward,” Ray said. “We are excited about the potential to better serve our patients, maintain and enhance the services we currently provide, add new service lines, and focus on physician recruitment and retention.”
The board identified, according to hospital officials, the following criteria to guide its decision-making throughout the process:
- Enhance TLRMC’s existing culture of rural, community-based care and personal service
- Continued commitment to core acute-care services and support expansion of other specialty service needs in the community
- Provide needed resources for physician recruitment, retention and practice management.
- Preserve meaningful local governance input
- Strengthen market position and measurable levels of clinical quality and patient satisfaction, including successful patient outcomes
- Maintain and enhance long-term financial viability of the hospital and physician services in order to be able to invest in facilities, technology and people
- Commit to employees including benefits employee satisfaction and reducing employee turnover rates
- Ensure access to management systems and expertise in the areas of clinical, legal, financial, operational, and information technology
“We are exploring options to ensure future financial stability and quality clinical care, “Meriwether said about the potential move. “We have requested proposals from select potential affiliation partners to see if they are willing and able to further the health and vitality of the communities Twin Lakes Regional Medical Center serves.”
There are several factors impacting the decision to seek affiliation, hospital officials said in a statement, including:
- Healthcare consumerism is growing as individuals and families face high out-of-pocket expenses.
- Payors continue to seek lower costs, in some cases, denying payment for services such as for non-emergent use of the emergency department.
- Labor costs are increasing due to a nationwide physician and nursing shortage.
As these and other factors drive continually declining margins, hospital closures have become increasingly common events. Over the past seven years, there have been more than 160 hospital closings across the U.S., the majority of which were rural hospitals located in southern parts of the country.
“The hospital is performing well financially, and we want to use this to our advantage,” Meriwether said. “We believe that exploring our options before it becomes urgent is in the best interest of the hospital, its employees and physicians, and most importantly, the patients we serve.”
Hospital officials said that TLRMC will accept proposals from potential partners and determine whether its in the hospital’s best interest to remain independent or pursue an affiliation. Each potential partner organization will be evaluated to understand how it can best assist TLRMC in realizing its strategic objectives.
Should the board decide to move forward in exclusive discussions with a potential partner organization, a lengthy, confidential due diligence process will be undertaken, as well as any required regulatory review processes, according to TLRMC officials. The board will not enter into any binding agreement until it has shared information about the proposed direction of the plan with key stakeholders.
The board said it recognizes that TLRMC is the sole provider of essential healthcare services to the community. As a major employer, TLRMC is a vital community economic engine within Grayson County and preserving its success is critical, officials said.
(Photo: TLRMC Board Chair Trevor Ray speaks to Grayson County Fiscal Court about the hospital potentially seeking a partnership with another healthcare organization. Seated behind Ray are (l-r) Dr. Brett Abney, Wayne Meriwether, and local businessman/founder and owner of Future Designs Building Materials, Kevin Brooks)
By Ken Howlett, News Director
Contact Ken at ken@k105.com or 270-259-6000
