Information About McCall Memorial Hospital
Joining St. Luke's Health System
Frequently Asked Questions
Why is joining St. Luke’s Health System best for patients?
How would joining St. Luke’s make us better?
How would joining St. Luke’s Health System affect patient care?
Would Life Flight continue to serve McCall?
Why is joining St. Luke’s Health System best for the hospital?
How does St. Luke’s benefit from McCall Memorial Hospital joining the health system?
What will happen to our hospital if we do not join St. Luke’s Health System?
Why is the hospital investing in remodeling buildings if there are projected financial challenges?
Does this mean the hospital is going to further expand?
Will we lose the sense of ownership the community has in the hospital?
Would the vision for McCall Memorial Hospital change?
What about national health care reform?
Under this new arrangement, who would own the health care assets in our community?
Does St. Luke’s, as a not for profit organization, fund the capital needs of all of the hospitals within the System?
Why is St. Luke’s the right partner?
What will the impact of this relationship be on current hospital employees?
How will this work?
Sequence of Events
Letter of Intent
Definitive Agreement
How does the Letter of Intent protect our community health care asset?
Why do we need to form a new 501(c)(3) not for profit entity?
Is a vote of the taxing district required?
Why still tax the community?
Why Does McCall Memorial Hospital still need the tax levy?
Why do we need to keep paying taxes for a hospital that also serves those from
outside the taxing district?
Is there a way to part ways with St. Luke’s Health System if it doesn’t work out?
Why is joining St. Luke’s Health System best for patients?
How would joining St. Luke’s make us better?
Our excellent patient satisfaction scores reflect the exceptional care and nurturing environment of McCall Memorial Hospital. We believe this partnership is the best
option to maintain high quality care for the people McCall Memorial Hospital serves. Sharing educational opportunities, patient-care protocols, quality initiatives, and information technologies can lead to performance improvement.
How would joining St. Luke’s Health System affect patient care?
Continually improving the quality of patient care is a daily commitment at both McCall Memorial Hospital and St. Luke’s. This new relationship would not change our
philosophy of caring for people or the healing environment we have created.
Our quality patient care can best be maintained, and even expanded, by joining St. Luke’s. Access to patient data, acceptance of more insurance programs, and
transferring patients smoothly to receive care that is not available in McCall can
greatly enhance a patient’s experience and outcome. McCall Memorial Hospital and
St. Luke’s embrace the concept of integrated care and believe patients are best
served through this aligned model of care delivery.
Would Life Flight continue to serve McCall?
It is our understanding that both Life Flight and Air St. Luke’s would continue to
serve our region. Both providers transport patients to the most appropriate hospital indicated by either the attending physician or the patient. This approach would
continue if we became part of St. Luke’s Health System.
Why is joining St. Luke’s Health System best for the hospital?
How does St. Luke’s benefit from McCall Memorial Hospital joining the health system?
St. Luke’s mission is ”to improve the health of people in the region”. Aligning with
other hospitals in the region, such as McCall Memorial Hospital, supports this mission. Sharing the care of patients across a broad service region is better for patients and
a more efficient way to provide health care. When patients access the services they need from one aligned system of care duplication of services are reduced.
“St. Luke's believes the best way to deliver medical care today is through a strong
regional network of hospitals and physicians. Bringing McCall Memorial Hospital into
St. Luke's Health System strengthens the overall network--it indirectly helps everyone
we serve--and it will enhanced medical care to McCall area residents. I am confident
of this.”
David Pate, MD, CEO, St. Luke's Health System
What will happen to our hospital if we do not join St. Luke’s Health System?
The future of health care is uncertain. Going it alone as a small, rural hospital is risky. Joining St. Luke’s would provide significant cost savings, estimated at $500,000-$800,000 each year. Without a partner, we will have significant difficulties achieving efficiencies, funding capital needs, and maintaining the facility.
It means the difference between surviving and thriving. We value our progressive,
small town hospital and appreciate the scope of services it offers such as in-house radiology, obstetrics, and surgery. Joining St. Luke’s gives us a way to sustain, and
even enhance, the services currently offered. When an organization exists in survival mode, quality can be affected. For example, if you operate a facility with older
equipment and outdated technology it is difficult to recruit the high caliber doctors
and staff we want in our community.
Why is the hospital investing in remodeling buildings if there are projected financial challenges?
With a general surgeon on staff since 2008 utilization of the two operating rooms has increased. It is necessary to construct a new procedure room to free up the two operating rooms to serve health emergencies. The Board of Trustees determined remodeling Lake Street Center and relocating certain non-clinical functions was the most cost effective way to achieve the goal of expanding the surgical services department.
Expanding the surgical services department is also an important step in the process of recruiting an orthopedic surgeon to McCall. Resident orthopedic services were available in McCall from 1989 to 2003. Since that time the hospital has tried a variety of staffing arrangements to provide orthopedic coverage. However, input from the community and a 2007 Physician Needs Assessment indicated we would benefit greatly from a resident orthopedic surgeon. Recruiting an orthopedic physician is a highly competitive process. Being able to offer adequate facilities helps us recruit candidates who are good match for our community and hospital.
Does this mean the hospital is going to further expand?
No. Since the last hospital renovation in 1996, McCall Memorial Hospital has functioned in 32,000 square feet. A space allocation review conducted in 2008 by the American Health Facilities Development (AHFD) found that a hospital offering our scope of services with our population size should have additional space to best serve patients. This in-depth look at our facilities confirmed our staff does outstanding work in very compressed space. Until the economy recovers or utilization increases there will be no physical facility expansion.
Will we lose the sense of ownership the community has in the hospital?
We believe joining St. Luke’s helps the hospital meet its long-term goals of
providing quality patient care and maintaining services. Local control is retained
and decisions about health care are made by those who live in our communities.
Would the vision for McCall Memorial Hospital change?
The vision for McCall Memorial Hospital would not change. The vision of providing exceptional quality care close to home continues. McCall Memorial Hospital would continue to be a Critical Access Hospital with close ties to the people it serves. You
can expect to be treated by the same team of dedicated physicians and nurses;
you can expect to drive onto a beautifully landscaped campus; you can expect to be greeted by friendly staff, and the rooms will have the same warm feeling as today.
What about national health care reform?
New health care legislation will likely bring both opportunities and challenges to our
local medical community. Working with a larger health system we will have expanded access to the resources and expertise to help us navigate the uncertainties of health care reform and continue to provide services to our patients. Clearly, our local
hospital’s ability to interpret new mandates, implement new technology requirements and adjust to changes in reimbursement is strengthened by partnering with a larger health system like St. Luke’s.
Under this new arrangement, who would own the health care assets in our community?
The assets of the hospital would not be given away. Existing assets would be transferred to St. Luke’s McCall, a newly formed 501(c)(3) not-for-profit entity,
whose Board of Directors will be comprised of residents from the hospital’s service area.
Does St. Luke’s, as a not for profit organization, fund the capital needs of all of the hospitals within the System?
No. St. Luke’s does not pay for member hospital’s equipment or infrastructure.
However, joining St. Luke’s would allow the hospital access to lower cost financing through St. Luke’s “A” Bond Rating when major purchases are necessary.
Why is St. Luke’s the right partner?
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St. Luke’s, the only Idaho-based not for profit health system and is renowned nationally for its patient care excellence. St. Luke’s was included in the 2009 Thomson Reuters 100 Top Hospitals in America. St. Luke’s is one of only 13 hospitals nationwide to have made the list seven or more times. Other repeat hospitals include the Mayo Clinic and Vanderbilt University Medical Center.
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McCall Memorial Hospital and St. Luke’s Health System share similar missions, values and cultures and have enjoyed a mutually beneficial relationship for
more than ten years.
What will the impact of this relationship be on current hospital employees?
An employee’s years of service and base pay would be honored in a transition to
St. Luke’s McCall. St. Luke’s also offers a comprehensive medical package and two
types of retirement programs. While benefits offered by St. Luke’s may be structured differently than those offered by McCall Memorial Hospital our commitment is to
provide the best compensation and benefits our hospital can afford for our employees. It is not anticipated that employee positions will be reduced. We believe joining
St. Luke’s Health System would make jobs more secure because of improved finances.
It is possible however, that some job descriptions may change.
How will this work?
Sequence of Events
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December 2007 - McCall Memorial Hospital Board of Trustees began to
explore benefits of McCall Memorial Hospital aligning with a health system
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January 2009 – Board of Trustees approached St. Luke’s Health System to discuss the possibility of joining their system
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June 2009 - Steering Committee was formed to explore possibility of joining
St. Luke’s Health System
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April 2010 - Letter of Intent signed between McCall Memorial Hospital and
St. Luke’s Health System
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April-July 2010 - Public Process including internal meetings with staff and external community meetings to seek input and answer questions
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August 3, 2010 – Advisory Vote scheduled
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Definitive Agreement would be prepared if Board of Trustees agrees to join
St. Luke’s Health System
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October 1, 2010 - McCall Memorial Hospital would join St. Luke’s Health
System if board signs Definitive Agreement. St. Luke’s McCall a 501(c)(3) not
for profit entity would be formed.
Letter of Intent states in writing the mutual intentions and understandings between McCall Memorial Hospital and St. Luke’s. A Letter of Intent is a non-binding document.
Definitive Agreement is the final document agreed to by the respective Boards of McCall Memorial Hospital and the St. Luke’s Health System. It would include the terms and conditions that are acceptable to both parties and would be legally binding.
How does the Letter of Intent protect our community health care asset?
The leaders of McCall Memorial Hospital and St. Luke’s and their legal advisors
worked extensively to create a preliminary agreement which we believe is balanced
and fair. There are risks in any change, but the philosophy of the Letter of Intent is by working together, we can maintain and improve the level of care we have come to expect from our local hospital, with a greater degree of financial stability.
Why do we need to form a new 501(c)(3) not for profit entity?
This approach has been used successfully in other communities including the
Wood River Valley and the Magic Valley. The creation of a new 501(c)(3) not for profit entity presents several advantages including:
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Use of St. Luke’s Health System’s positive credit rating to finance critical capital improvements and maintenance. The hospital district would otherwise be
forced to ask the tax payers to shoulder this burden.
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Ability to expand the size and geographical representation of the hospital’s
Board of Directors.
Is a vote of the taxing district required?
A vote is not required, however, it is very important to the McCall Memorial District
Board of Trustees and to St. Luke’s Health System leadership to provide every reasonable opportunity for community members to provide input. An advisory vote
for district residents will be held on August 3.
Why still tax the community?
The taxing district for McCall Memorial Hospital was created in 1984 to ensure quality health care in the district. The tax-revenue is needed as much today as when the district was established. Last year, McCall Memorial Hospital received $1.3 million in tax revenue. The support from the taxing district is essential to keep the doors of the hospital open. The hospital’s high quality of care and well maintained facility are community assets that makes McCall a better place to live, recreate, or invest in for second home owners. By creating the new 501(c)(3) and joining St. Luke’s Health System, we would also create the opportunity to finance our capital improvement plans without asking the tax payers to carry that burden.
Why Does McCall Memorial Hospital Still Need the Tax Levy? |
FYE 9/30/2009 |
Tax Levy Monies for McCall Memorial Hospital |
$1,300,000 |
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What are those tax levy monies used for? |
|
Medicare & Medicaid Contractuals |
$2,511,274 |
Bad Debt |
$2,337,416 |
Charity Care |
$813,805 |
Total |
$5,662,495 |
Why do we need to keep paying taxes for a hospital that also serves those from outside the taxing district?
Living in the McCall Memorial Taxing District provides the benefit of fast access to
medical care, which can be life-saving. People choose whether to live closer to
services and pay a small cost for that convenience. Currently, property owners pay
$36 per every assessed $100,000 less any homeowner exemption.
Is there a way to part ways with St. Luke’s Health System if it doesn’t work out?
Yes. There are several triggering events which would allow the taxing district to
re-acquire the assets it transfers to St. Luke’s McCall. The definitive agreement is
like a prenuptial agreement. Both parties expect the relationship to work. However, there are provisions to dissolve the relationship and have assets revert back to the McCall Hospital District under certain circumstances.
Community involvement in this process is very important to hospital leadership as
well as the Board of Trustees. Please email us or call at (208) 634-4061 ext 131 if you would like more information or if you want to share your input.