<< Front page News December 5, 2003

Allen medical close to merger
Hospital board to be dissolved with current plan

Negotiations are currently underway to finalize a merger between Oberlin’s Allen Memorial Medical Center and Community Health Partners. The Lorain-based health care system boasts a chain of 15 hospitals.

The merger is contingent upon a decision by Allen Medical Center’s Board of Trustees.

Allen’s facility, which is owned by the College, has been managed by CHP since a budget crisis in 2000 nearly forced it to shut down. The hospital is now in significantly better shape financially, according to Allen Board Member and College Vice President Andy Evans. He attributes this change to CHP’s management.

“It’s competitive right now and we’re very happy with it,” Evans said.

The hospital was founded in the 1920s as the Oberlin College Infirmary and formed its own board in 1950s.

The College sold the hospital to the town for $1 in the 1960s so that it could function as a community hospital. When the facility found itself in financial hard times three years ago, the College bought it back for $2 million.

The College plans to adhere to whatever the board’s decision is regarding the merger. The board has not made a final decision.

“The College’s intent is to support whatever efforts are made towards [providing health services],” Evans said.

Hospital Board President Doug Wilber told the Oberlin News-Tribune that CHP had planned the merger since taking over care at the hospital.

“Their intent right from the start was to come in and see if they could stabilize the hospital,” Wilber said. “And assuming they could, they would move on to completion of a permanent relationship.”

Sources within the administration, however, say that the College, which owns the property, had no knowledge of any merger plans until late Novemeber.

There are also some lingering concerns around town about the way in which the discussions have been carried out.

“It seems like the College hasn’t really done its due diligence in looking into the financial viability of CHP,” town resident Josh Rosen (OC ‘00) said. “It also seems as if there’s are some conflicts of interest involved since the college and CHP share a law firm.”

There have also been concerns raised about CHP’s parent company Catholic Health Partners, a multibillion dollar national hospital chain with strong connections to the catholic church.

“What concerns people is that this is part of a national artwork of catholic hospitals and there might be additional restrictions on medicaments used in the doctor’s office,” Dean of Students Peter Goldsmith said. “The representatives of the Hospital network are maintaining that there will be no change in the way that physicians practice medicine in their offices.”

Evans emphasized the benefits the hospital might receive from Catholic Health Partners’ size.

“Financial strength of larger institution might allow smaller hospitals to borrow money under better terms,” he said.

He admitted that the college would be powerless if CHP decided to overhaul the hospital or make changes to the facilities as the vote would cause the current board to be dissolved and replaced with one chosen by CHP with a lower level of governance responsibility.

But he emphasized that the College is going to continue to play an active advisory role in hospital policy.

“I think the College and the present board will play an active role in the future,” he said. “We have to push to make sure that the hospital serves the community.”

Representatives of Community Health Partners were unavailable for comment.

   

A note to our subscribers: Our subscription list was deleted.
Please help us reconstruct it. (Read on...)