While Wednesday night’s public meeting between Jennie Stuart Health officials and concerned citizens brought some clarity to the potential merger with Deaconess Health Systems of Evansville, several questions and issues were lobbied from the crowd.
Among them: a desire for a definition of the partnership.
Jennie Stuart Board of Trustees Chair Leslie Carroll and Vice Chair Hollis White didn’t call it a sale, but instead termed the discussed union as a “member substitution” — and one that still needs more definition.
White also noted that the definitive agreement, which has yet to come to light, would offer more detail on the guarantees of patient care remaining in Christian County.
Asked by Tony Prim, associate director for the South Western Kentucky EDC and Elkton’s Rotary Club president, about the proposed fiduciary promise to the Jennie Stuart Health Foundation, White and Carroll said the $5 million will be “restricted” to the Foundation’s boards.
Jerry Gilliam, Christian County’s judge-executive, queried about the possibility of Deaconess being bought out by an even bigger health corporation. What then of Jennie Stuart’s reported $140 million in cash equivalency?
Another asked, “Did you get any bids for the hospital?”
Another citizen noted she “didn’t want to read and understand the contract after it’s signed,” but asked: “As a board, are you responsible for answering our questions, or are you responsible for holding back information because you signed a don’t-speak-about-it non-disclosure agreement?”
White urged that “fiduciary responsibility” was, and remains, key.
And another: “How is Vanderbilt still going to be a part?”
John Bruce, magistrate for Christian County, asked: “Is Deaconess prepared to make long-term investments with Jennie Stuart?”
In a flier distributed to people at the meeting, Deaconess Henderson Hospital reported negative operating margins as Methodist Hospital in 2020 — having defaulted on a $25 million loan from Fifth Third Bank.
With an average daily census of 35 patients, few specialists and/or providers were practicing on the property.
Following this “member substitution,” Deaconess of Evansville moved to secure the loan and nullified the default. Leapfrog, which assigns letter grades to almost 3,000 general acute-care hospitals twice annually, moved the hospital from an “F” in Spring 2019, to an “A” in Spring 2024.
In the same Spring 2024 Leapfrog assessment, Jennie Stuart Health received a “D.”
Officials reported nearly 20 new services, more than 30 new jobs and more than 30 capital improvements were added to the facility since the agreement, and from 2020 until now, discharges have increased 48%, total operating revenue has increased more than 52%, emergency department visits have increased more than 52%, and total income from operations have increased more than 138%.
The flier also noted that Deaconess Henderson Hospital has now pledged at least $250,000 in scholarship funding to Henderson Community College to be applied to students enrolled in health care disciplines. Another $500,000 was pledged for naming rights to the announced Henderson Sports Park, and a commitment has been made to continue donations to local non-profits, as well as the Henderson Economic Development Corporation, north of $125,000 annually.
Above all, Jennie Stuart Health’s Chief Financial Officer Mark Laramee said one of the largest immediate investments from Deaconess would be a move from Altera to Epic EHR.
A current IT employee for Jennie Stuart brought up a career concern.
Another public hearing is expected to occur before the Board of Trustees gathers in early December.
Jennie Stuart Health Spring 2024 Leapfrog Grades:
Regional Hospital Spring 2024 Leapfrog Grades:
