Posted on October 4, 2016
Author Mary Perren, WKVI
Starke County will continue to have a hospital for the foreseeable future. The lease between the county and Starke Hospital’s parent company, Tennessee-based Community Health Systems, expired at midnight on Friday, Sept. 30. Negotiations between the county and CHS over terms of a new lease abruptly ceased on Sept. 19. A deal would have cleared the way for construction of a new hospital on the existing site at the intersection of South Heaton Street and Culver Road in Knox.
Options for CHS included a 10-year extension of the current lease terms or a six-month notice of termination. Hospital officials issued this statement in response to an inquiry from WKVI News.
“After receiving word from county officials on Sept. 20 that they wished to end negotiations on a new lease, Starke Hospital Company, LLC., has extended the current lease for 10 years per the current agreement. We acknowledge that there will now be a delay in building a new hospital in Starke County, but are continuing to explore all options for building the new hospital.”
Showing posts with label Community Health Systems. Show all posts
Showing posts with label Community Health Systems. Show all posts
Tuesday, October 4, 2016
Wednesday, September 21, 2016
CHS Responds to Starke Hospital Lease Decision
Posted on September 20, 2016
Author Mary Perren, WKVI
Starke Hospital officials have responded to the county’s abrupt decision to cease negotiations for a new lease of the existing site. The commissioners’ unanimous decision means Tennessee-based Community Health Systems has until Sept. 30 to either renew the current lease for 10 years or exercise the six month notice of non-renewal.
CHS officials released this statement:
“We are disappointed in the decision by the County Commissioners not to move forward with plans at the current location and end lease negotiations. Nonetheless, we will continue to explore alternatives to develop a replacement facility for the residents of Starke County.”
Author Mary Perren, WKVI
Starke Hospital officials have responded to the county’s abrupt decision to cease negotiations for a new lease of the existing site. The commissioners’ unanimous decision means Tennessee-based Community Health Systems has until Sept. 30 to either renew the current lease for 10 years or exercise the six month notice of non-renewal.
CHS officials released this statement:
“We are disappointed in the decision by the County Commissioners not to move forward with plans at the current location and end lease negotiations. Nonetheless, we will continue to explore alternatives to develop a replacement facility for the residents of Starke County.”
Tuesday, September 20, 2016
Commissioners Pull Plug on Hospital Lease Negotiations with CHS
Posted on September 20, 2016
Author Mary Perren, WKVI
The fate of Starke Hospital is in question following action last night by the county commissioners. They voted unanimously to cease all negotiations with Tennessee-based Community Health Systems on a new lease for the building and land on which it sits.
“That means that the latest extension of the six-month notice period ends at midnight on Sept. 30th, and Community Health Systems may renew for an additional 10 year extension, or not, as per the current agreement,” Commissioner Kathy Norem said.
County attorney Marty Lucas will now notify CHS of the commissioners’ decision. If they not to renew the lease in its current form, they have to give the commissioners a six-month notice of their intent not to renew. Norem says that will dictate the county’s next steps.
The commissioners’ action comes amid reports that CHS is looking to sell its business. “Bloomberg” last Friday quoted anonymous sources “with knowledge of the matter” who said CHS has enlisted advisors to consider its options. The process is said to be in the early stages, with no certainty of a deal.
Negotiations between CHS and Starke County officials for a long-term lease to clear the way for construction of a new hospital apparently stalled last month, based on the abrupt cancellation at the request of hospital officials of three public meetings scheduled by the commissioners to share details of the proposed arrangement. The commissioners reluctantly granted the latest 30 day lease extension to give CHS time to request a tax abatement from the City of Knox. No formal request was ever made, according to city officials.
Last week officials confirmed the departure of Starke Hospital President Craig Felty but said it should not hamper the negotiating process.
The Bloomberg report notes the value of CHS stock has plummeted 75 percent in the past year. The company posted a second quarter net loss of $1.43 billion last month.
An agreement between IU Health LaPorte Hospital, Community Health Systems and Indiana University Health announced late last year gave Indiana University Health 20 percent ownership of IU Health LaPorte and Starke Hospitals. CHS subsidiaries own 80 percent, and IU Health shares in equal governance of the new organization.
Author Mary Perren, WKVI
The fate of Starke Hospital is in question following action last night by the county commissioners. They voted unanimously to cease all negotiations with Tennessee-based Community Health Systems on a new lease for the building and land on which it sits.
“That means that the latest extension of the six-month notice period ends at midnight on Sept. 30th, and Community Health Systems may renew for an additional 10 year extension, or not, as per the current agreement,” Commissioner Kathy Norem said.
County attorney Marty Lucas will now notify CHS of the commissioners’ decision. If they not to renew the lease in its current form, they have to give the commissioners a six-month notice of their intent not to renew. Norem says that will dictate the county’s next steps.
The commissioners’ action comes amid reports that CHS is looking to sell its business. “Bloomberg” last Friday quoted anonymous sources “with knowledge of the matter” who said CHS has enlisted advisors to consider its options. The process is said to be in the early stages, with no certainty of a deal.
Negotiations between CHS and Starke County officials for a long-term lease to clear the way for construction of a new hospital apparently stalled last month, based on the abrupt cancellation at the request of hospital officials of three public meetings scheduled by the commissioners to share details of the proposed arrangement. The commissioners reluctantly granted the latest 30 day lease extension to give CHS time to request a tax abatement from the City of Knox. No formal request was ever made, according to city officials.
Last week officials confirmed the departure of Starke Hospital President Craig Felty but said it should not hamper the negotiating process.
The Bloomberg report notes the value of CHS stock has plummeted 75 percent in the past year. The company posted a second quarter net loss of $1.43 billion last month.
An agreement between IU Health LaPorte Hospital, Community Health Systems and Indiana University Health announced late last year gave Indiana University Health 20 percent ownership of IU Health LaPorte and Starke Hospitals. CHS subsidiaries own 80 percent, and IU Health shares in equal governance of the new organization.
Tuesday, August 2, 2016
County Officials Finalizing Starke Hospital Lease Negotiations
Posted on August 2, 2016
Author Mary Perren, WKVI
The Starke County Commissioners are close to finalizing an agreement with the new owners of Starke Hospital to clear the way for construction of a new building. The county owns the current structure at the corner of Heaton Street and Culver Road in Knox and the land on which is sits, but the hospital is operated by Tennessee-based Community Health Systems.
Last night the commissioners approved another 30 day lease extension to wrap up the process. They also set a special joint meeting with the county council and hospital board on Monday, Aug. 29 to formally approve the agreement.
First though Commissioner Kathy Norem intends to schedule three public meetings to discuss the deal and what it will mean for Starke County residents and taxpayers. Her plans are to have evening sessions in Knox, North Judson and the Hamlet/Grovertown area the week of Aug. 22nd. Norem says she’s contacted the three schools to inquire about the availability of facilities and will have dates, times and locations at the next commissioners meeting on Monday, Aug. 15.
Once a new agreement is finalized, Starke Hospital officials intend to proceed with plans to build a new hospital on the existing land. Past discussions indicate it will be constructed between the current building and the medical offices to the south. The current structure will eventually be torn down and turned into a parking lot.
Author Mary Perren, WKVI
The Starke County Commissioners are close to finalizing an agreement with the new owners of Starke Hospital to clear the way for construction of a new building. The county owns the current structure at the corner of Heaton Street and Culver Road in Knox and the land on which is sits, but the hospital is operated by Tennessee-based Community Health Systems.
Last night the commissioners approved another 30 day lease extension to wrap up the process. They also set a special joint meeting with the county council and hospital board on Monday, Aug. 29 to formally approve the agreement.
First though Commissioner Kathy Norem intends to schedule three public meetings to discuss the deal and what it will mean for Starke County residents and taxpayers. Her plans are to have evening sessions in Knox, North Judson and the Hamlet/Grovertown area the week of Aug. 22nd. Norem says she’s contacted the three schools to inquire about the availability of facilities and will have dates, times and locations at the next commissioners meeting on Monday, Aug. 15.
Once a new agreement is finalized, Starke Hospital officials intend to proceed with plans to build a new hospital on the existing land. Past discussions indicate it will be constructed between the current building and the medical offices to the south. The current structure will eventually be torn down and turned into a parking lot.
Monday, June 13, 2016
Starke Hospital CEO Discusses New Facility Plans
Negotiations between the county and the new owners of Starke Hospital regarding the construction of a new facility on the existing site are ongoing. The county owns the current building at the corner of Heaton Street and Culver Road in Knox and the land on which is sits, but the hospital is operated by Community Health Systems. Starke Hospital CEO Craig Felty says they’re making progress in negotiations with the county for a new lease.
He adds both groups want to ensure adequate health care for years to come in the county and says there are a lot of different aspects involved in doing so need to be worked out.
Felty says another extension of the current lease with the county will likely be necessary to wrap up the negotiations.
“It depends on how long it’s going to take to get all this other stuff settled that we need to. The little stuff that’s in the contract — it may seem little, but it really takes a lot of time to get that stuff settled.”
Felty says the plan is still to build on the existing hospital site, noting that it is centrally located and in a close proximity to a number of area physician offices.
He remains hopeful they can break ground on a new building by the end of 2016. Construction will take between nine and 12 months to complete, according to Felty. Once everything is transferred to the new building, demolition of the existing structure will take between three to six months. After it’s down, the area will be turned into green space and parking.
Starke Hospital officials are meeting again in executive session this evening with the county council and commissioners to continue the negotiations.
Monday, April 11, 2016
Hospital CEO Reaffirms Commitment to New Facility
The CEO of Starke Hospital says the new owners of the local facility would prefer to construct a new building on the existing site at the intersection of South Heaton Street and Culver Road. The county owns the land and the building, but Tennessee-based Community Health Systems now owns 80-percent of the hospital. IU Health has retained 20-percent ownership, and a subsidy of CHS is running the day-to-day operations. The name change to simply “Starke Hospital” reflects the shift, and a new branding symbol is in the works.
The current lease between the county and hospital owners is up at the end of September. It requires a six-month notice period, which was the end of March. Starke Hospital CEO Craig Felty says they’re “definitely” going to build a new facility and are still negotiating with the county about doing so on the existing site.
“We asked for a 90 day extension of that notice period with the intent hopefully that we can actually come up with a new lease,” Felty said during a Friday program on WKVI. “We’re very optimistic that we’re going to meet and we’re going to get that done before we even have to extend the current lease on the new facility, because we want to build a new facility.”
The Starke County Commissioners agreed to that extension at their March 21st meeting. At the time, county attorney Marty Lucas stressed the negotiations are confidential but assured audience members details of a deal would be made public before a formal vote is taken.
Felty says the existing building is outdated and in need of repairs. He says remodeling it would cost significantly more than new construction and would still not meet the hospital’s needs for efficient delivery of care.
Last year hospital officials hosted two tours of full-size cardboard mock-ups of the proposed design and incorporated recommended changes into the plans. That was before the CHS acquisition. During the tours, officials said plans were to build the new structure on the county-owned land between the existing hospital and doctor’s offices and tear the current building down once construction was completed.
Monday, March 28, 2016
Commissioners Debunk Hospital Rumors
The Starke County Commissioners last week reaffirmed their commitment to building a new hospital in Knox. County officials are still negotiating with Tennessee-based Community Health Systems, which recently acquired 80-percent ownership of IU Health Starke and LaPorte Hospitals. The county owns the current hospital building and land on which it sits. Commissioner Kathy Norem quoted an email received by the commissioners stating they are “ignorant, clueless and intentionally blocking the building of a new facility.” She says they want to ensure adequate services are provided.
“Every elected official here this evening is a longtime resident of this community. We all use the hospital, and we depend on its existence to provide medical, surgical and emergency services for ourselves, our families and our constituency. Certainly we recognize the value of the hospital and not just in terms of the medical services provided, but also as an economic powerhouse in our community. Without a hospital, a poor community is only going to get poorer.”
The commissioners voted unanimously to extend the notice period with CHS by 90 days and agreed to schedule public meetings during that time to share information with both hospital employees and the public at large. Norem says they want to ensure everyone knows what’s really going on. She says the commissioners are interested in a new hospital, but more than that they want to ensure people maintain their jobs and necessary services are provided.
County Attorney Marty Lucas adds CHS has requested confidentiality to the extent allowed by law with regard to the negotiations.
“We’re not as free to share information at this point as we’d like, but, on the converse of that, before any deal is actually agreed to, the public will know everything. That’s what these public meetings are about, to bring that to the public a little more. I just want you to understand that’s a little bit of a challenge.”
Dates for the public meetings have not yet been announced. As soon as they are, we will share them during our newscasts and on our Community Calendar page. Additionally, in our commitment to full public disclosure and transparency, we will share the entire discussion about the hospital, including public comments, on the Sunday, April 3 Kankakee Valley Viewpoints program. It airs at noon Central on K99.3 WKVI FM.
Thursday, March 3, 2016
Change in Hospital Ownership Leads to Establishment of Healthcare Foundation of LaPorte
The affiliation between Community Health Systems, IU Health and IU Health LaPorte and Starke Hospitals has been finalized.
Indiana University Health is now a minority owner of IU Health LaPorte and Starke Hospitals. They own 20 percent, and CHS subsidiaries own 80 percent. IU Health will share equal governance of the new organization. Officials say this will ensure a local voice is heard in all future decisions.
Part of the agreement is the creation of the Healthcare Foundation of LaPorte (HFL). It’s a new, independent, nonprofit foundation that’s dedicated to empowering residents in and around LaPorte to live healthy and well.
The HFL is initially funded with $106 million from the change in ownership for IU Health LaPorte and Starke Hospitals. It will be managed by a volunteer board of 11 local community members and will focus on improving the health of the local community.
Board members include several former chairs of the LaPorte Hospital Board and several former members of the existing LaPorte Hospital Foundation. Maria Fruth, who currently serves as executive vice president and chief operating officer of the LaPorte Hospital Foundation will become the Chief Operating Officer of the HFL and will oversee all aspects of the local foundation.
The existing foundation’s assets and programs will be combined with the HFL. It will optimize healthy living in LaPorte by focusing on Strategic Thought and Leadership; Grantmaking, Scholarship and Vouchers; and Healthcare Programming. Starting in late 2017, about 5 percent of the value of the HFL’s assets will be used annually to support healthier living through the three strategic areas. That investment is expected to grow over time as fundraising efforts continue, additional proceeds are received and investment strategies are implemented.
“The Healthcare Foundation of LaPorte will be our local voice in healthcare, and we will continue to depend on contributions of time, energy, and funds if we are to create real change,” Fruth said in a statement.
Wednesday, January 27, 2016
Starke Commissioners Approve Hospital Lease Transfer
Starke Commissioners Approve Hospital Lease Transfer
The soon-to-be new operators of IU Health Starke Hospital now have a signed lease in effect with the county for the facility. The commissioners last night unanimously approved an assignment of lease for the building and the land on which it sits to Knox Hospital Company, LLC. It’s a wholly-owned subsidiary of LaPorte Health Systems, LLC. The assignment of lease is necessary because Tennessee-based Community Health Systems is purchasing 80-percent of the rights to operate the hospital. IU Health will retain the other 20 percent. Starke County Attorney Marty Lucas says such arrangements provide a combination of financial backing and management expertise.
“CHS is asserting it is responsible for the obligation of Knox Hospital, LLC. It has the capability in terms of knowledge of operation, and that you can rely upon that assertion,” Lucas told the commissioners.
The land and building are still owned by the county. CHS has committed to build a $15 million structure between the current hospital building and medical offices within the next five years. Once it’s finished the old building will be torn down and used for parking.
No changes have been made to the lease at this time. Now that it has been transferred to CHS, the county council and commissioners are in a position to consider their request for tax incentives as part of a new land lease arrangement. The current contract expires at the end of September. Hospital and county officials believe a new lease can be worked out before then.
Tuesday, January 26, 2016
Starke Commissioners Poised to Approve Hospital Lease Assignment
The Starke County Commissioners will clear the way for the sale of IU Health Starke Hospital during a special meeting later today. They will formally approve the assignment of the hospital lease to Knox Hospital, LLC during the special-called 4:30 p.m. session. That’s the limited liability company set up by IU Health and Community Health Systems. The Tennessee-based company is in the process of buying IU Health LaPorte and Starke Hospitals.
Starke County owns the hospital and leases it to IU Health. CHS officials say the assignment of the lease needs to be done this week in order to keep the acquisition on track. They’ve expressed a desire to work with the county to switch it to a land lease in order to allow for construction of a new hospital between the current building and doctors offices in what is now the parking lot and helipad at the existing site.
Tentative plans call for construction to start two years after the sale closes later this year and finish in five. The current hospital will stay open until the new building is complete and later be torn down to accommodate parking.
CHS officials have asked the county for some tax incentives as part of the process and said they would like to sign an initial 25-year lease with five 10-year renewal options, for a total of 75 years. Details of those plans still need to be worked out. If they aren’t finalized by the March 31 deadline to renew the current lease, the county commissioners have verbally agreed to a six-month extension of the current terms.
Community Health Systems operates 199 hospitals in 30 states.
Subscribe to:
Posts (Atom)