November 06, 2012
Kewanee Hospital’s potential affiliation with OSF HealthCare (OSF) is great news for the communities served by the hospital. It will ensure continued access to high-quality health care for many years to come. We want to keep you informed about this partnership and let you know how this decision will benefit the community. _____________________________________________________________________________________
Q. Why would Kewanee Hospital want to affiliate with OSF?
A. This potential affiliation will allow Kewanee Hospital to offer a wider variety of specialty care and improve our ability to recruit new doctors. It also will provide us with additional resources as we adjust to changes brought on by the changes in health care nation-wide.
Q. Is Kewanee Hospital considering affiliating with OSF because it is threatened financially?
A.No. Kewanee Hospital is financially strong. We just finished FYE 2012 with a positive operating margin, have successfully added orthopedic services, and looking to a bright 2013. Because of that, it is a great time to partner with OSF, one of the largest integrated systems in Illinois. This agreement ensures that we will provide quality health care services to the communities we serve well into the future.
Q. Why does OSF want to affiliate with Kewanee Hospital?
A. OSF benefits from partnering with a strong, well-run hospital like Kewanee Hospital. OSF chose to affiliate with us because we are a successful independent hospital that provides quality health care services in a large market area.
Q. When and how was this affiliation decided?
A. Our board of trustees and executive team have discussed the idea of an affiliation for many years. About two years ago, we began a strategic planning process with the idea of looking for the ideal partnership for Kewanee Hospital and the community. Our goal was to identify ways that the hospital could best navigate the changing landscape of health care in light of health care reform and the mounting pressures on all health care organizations. During this process we looked at potential affiliations with many hospitals, both regionally and nationally.
Q. Why are so many hospitals looking into possible affiliations?
A. It is tough to be an independent hospital right now. With health care reform changes, such as decreasing Medicaid reimbursement and additional regulatory burden, many hospitals, especially small rural hospitals like ours, are looking at partnerships for long-term stability.
Q. How will the affiliation affect the care patients receive at Kewanee Hospital?
A. Kewanee Hospital already offers quality health care services to our patients, but with support from OSF, we will be able to enhance our service lines and provide more specialists and resources for our patients.
Q. Why is OSF a good fit for Kewanee Hospital?
A. OSF shares a similar mission and culture as Kewanee Hospital and has the resources that will allow us to better provide for the needs of our patients, many of whom are already familiar with OSF.
Q. Will any employees lose their jobs?
A. All employees of Kewanee Hospital will become employees of OSF.
Q. Will the structure of the hospital’s leadership remain the same?
A. Our leadership team will retain the same structure. But, as a result of the affiliation, they will be able to concentrate on more long-term planning for the hospital, such as improving specialty care and access to health and wellness resources.
Q. Will the structure of the hospital’s Board of Trustees change?
A. Our Board of Trustees will become a community advisory board that will be able to communicate with OSF regarding the health and wellness needs of our community.
Q. Will the hospital’s name change?
A. Yes. We will work with OSF to choose a new name for our hospital with input from our board and Executive and Leadership teams.
Q. Will Kewanee Hospital continue to operate as a nonprofit organization?
A. Yes.OSF is and will remain a nonprofit organization.
Q. Will this change Kewanee Hospital’s commitment to charity care?
A. Charity care is an integral part of OSF’s mission, as it is ours. Following OSF’s guidelines, our charity care will continue. And, all of our charity care will continue to benefit the communities served by Kewanee Hospital.
Q. What is the next step?
A.Now that we have signed a Letter of Intent which describes the intentions of the parties and is not a binding agreement, we will go through a “due diligence” process to further evaluate the conditions of a potential affiliation with OSF.
Q. When will this change officially happen?
A. If everything proceeds as planned, our goal is to complete the affiliation by late 2013.