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Hospital will establish multi-million dollar foundation
OTTUMWA IOWA (Dec. 14, 2009) ---- Ottumwa Regional Health Center (ORHC) today announced that the hospital has entered into a Letter of Intent to be acquired by RegionalCare Hospital Partners, a company focused on the operation and growth of community hospitals. The acquisition is expected to be completed in the spring of 2010. Under the agreement, Ottumwa Regional will focus on the growth of medical services, while continuing to provide the same excellent quality of care to all patients regardless of their ability to pay. The hospital’s name will remain the same, the board of directors will continue to serve on the hospital’s new board and the staff of Ottumwa Regional Health Center (ORHC), Regional Retirement Living (Pennsylvania Place, Sylvan Woods and The Haven) and Regional Enterprises (RE) will retain their current positions. "This is a wonderful opportunity for Ottumwa Regional. We’ll enhance the great care we provide our patients while expanding medical services to our community," said Tom Siemers, President and CEO of ORHC. "RegionalCare is a good match with ORHC. They share our values and commitment to clinical and service excellence for patients." Siemers said that as a result of the partnership between ORHC and RegionalCare, new capital will allow ORHC to pay off its long-term debt, as well as invest substantial new capital in many new projects over the next five years, including: Accelerating plans for building a permanent building for a cardiac cath lab. Expansion and renovation of clinical service areas. Continued investment in training and programs based on the Studer principles for service excellence to patients. New equipment including a complete upgrade to the hospital’s information system. Plant maintenance and infrastructure projects. Additionally, a new multi-million dollar nonprofit foundation will be established and managed by an independent board of directors. Funded by net proceeds of the sale with cash and savings of the hospital, the new foundation will be among the largest in Iowa. The foundation will be dedicated to improving the health and wellness for the residents of Southeast Iowa. "We are pleased to note Ottumwa Regional’s Board of Directors reached the decision unanimously," said Ted Haas, MD, Chairman of ORHC’s Board of Directors. "The Board’s guiding principles in making our decision were to assure the continuation of outstanding care to patients, their families and the communities we serve, and do what is best for our associates and physicians. We selected an organization that is aligned with our mission, vision and values." Marty Rash, Chairman and CEO of RegionalCare Hospital Partners, said "Our mission is aligned with ORHC’s values and it says, ‘We believe the heart of healthcare is service to others.’ We are excited to partner with Ottumwa Regional. Our investment will help ORHC accelerate their plans and implementation of the organization’s strategic vision and mission as we work together to continue to provide exceptional service to the Ottumwa area. We look forward to growing ORHC together." John Webber, the hospital’s attorney and outside counsel said, "The board and hospital leadership have served the Ottumwa community very well in how they have gone about the process of looking for a partner over the past two years. They have been thorough, thoughtful and fair. They have been demanding and focused on the clear goal of finding a partner who shares their vision and values." ORHC President Siemers said, "The scope of commitments RegionalCare has made to ORHC’s future is extensive and will allow our hospital to fulfill its vision of continuing to provide exceptional care and service to our patients and families." About RegionalCare Hospital Partners……Founded July, 2009, a for-profit company with this mission: "We believe the heart of healthcare is service to others." RegionalCare’s executive team members are hospital veterans with experience operating and managing more than 300 hospitals in 25 states. The company forms partnerships with strong community hospitals that are seeking to expand their services and regional influence. RegionalCare’s offices are located in Brentwood, Tenn. Phone: 615.277.1415. Visit About Ottumwa Regional Health Center……..The Ottumwa hospital has served southeast Iowa for 115 years. Emergency admissions per year are more than 26,000. Births per year are more than 750. Active staff physicians: 62. Employees: 900. Payroll and benefits exceed $44 million/year. Auxiliary members exceed 300. |
