The Spectre of Spectrum: Is This Partnership Good for Mason County?

[XLFD]

Our local hospital board continues to say it represents the people of the local community, but continues to fail to keep the community apprised of its plans until everything is decided in private negotiations, with boards that operate outside the purview of the general public.  The latest bombshell was reported on this Friday, May 10, 2013, when the Memorial Medical Center said it would partner with Spectrum Health to provide health services for the community.  So much for the 'community hospital' asking its clientele-owners about such a merger!

This comes shortly after Mecosta County finally merged their hospital with Spectrum in Big Rapids in late April of this year.  Its new name is Spectrum Health Big Rapids Hospital.  This goes with other recent acquisitions in the area of Fremont, Reed City, Greenville, Zeeland and others around Grand Rapids by Spectrum Health.  This plan of partnerships for Memorial MC was foreshadowed late last year, but wasn't spoken of once again until seven months later, after the negotiations had already been completed for the proposed merger.

 

 

In early October of 2012, the City of Ludington Daily News reported that the Memorial Medical Center was looking into partnerships with other health providing systems, looking at their future survival as dependent on it.  MMC President Mark Vipperman said it made sense to do it then, when in a strong position, and before others are perhaps forced into doing so.

Chairman of the Hospital Board Al Deering said Michigan is behind much of the nation in making such changes.

“It’s a community hospital,” Deering said. “It’s their hospital, not the board’s not the management team’s. This is a big deal, a really big deal. It was not that easy to come to this point.”

Memorial Medical Center of West Michigan is non--profit, private hospital corporation. The management team in place operates the 87-bed, independent, acute care hospital. The board of trustees, with membership made up mostly of representatives of the community, is the interface between the private corporation and the community.

If the hospital were to close, its assets, according to its charter, would be distributed for the benefit of the community.

MMC’s website states, “Although the hospital is a private, non-profit corporation, it is truly ‘owned’ by the communities it serves.” 

 

Memorial Medical Center in 2012 began a $14.7 million expansion project that is well under way. It involves enlarging its surgical area, mostly separating inpatient from outpatient service areas, relocating its main entrance to the south side of the building, rebuilding of campus roads and building a new, larger emergency department with private rooms.

Deering said he’s already been asked why do that expansion now if seeking a partnership.

“It’s still what we needed for the community,” he explains.  "We’re a pretty good-looking bride right now.  What better time to negotiate.”

Vipperman said there is a five-year plan in place that includes the expansion. That five-year plan involved the hospital being operated as an independent hospital.

“It was the right decision as a stand-alone hospital. It was the right decision if integrated,” he said. “I think it’s consistent with everything we are doing.  If we don’t find a way to benefit the community — that’s the motivating factor — we wouldn’t do it."

They both said at times throughout the process there will be periods in which they won’t be able to say much about what is going on. They plan to make regular reports to the community as warranted and as they are able.  Read more at:  COLDNews 10-4-2012

 

 

True to their word, the 'owners' (general public) of the hospital are kept in the dark until Friday's announcement of a partnership with Spectrum Health and kept out of any votes or negotiations, as reported in the Mason County Press: 

 

LUDINGTON — Memorial Medical Center has announced it intends to merge with Spectrum Health of Grand Rapids. The hospital signed a non-binding letter of intent to join Spectrum Health this morning during a press conference.

The agreement will preserve the hospital’s board of directors, ensuring a local voice in governing the hospital. According to a press release, other benefits include expanded healthcare services, better access to capital, improved access to medical specialists, additional professional opportunities for community physicians and retention of Memorial’s local staff.

Memorial President and CEO Mark Vipperman said all local jobs will be preserved. “That has been one of our discussions with Spectrum,” Vipperman said. “We have been assured that our current employees will be retained as employees of Spectrum Health when the merger becomes finalized and will continue to provide patients with excellent care. We believe expanded services could strengthen our position as the largest employer in Mason County.”

“I am incredibly pleased to be having this discussion with Memorial Medical Center,” Richard Breon, president and CEO of Spectrum Health said. “We are looking forward to continuing this great connection with great service in Mason County.”

Breon said Spectrum already has a working relationship with Memorial and the actual merger will take several months and requires approval of both hospital boards. He said Memorial’s financial state is strong, which makes this a good time to merge.

Spectrum health has over 19,000 employees, 1,500 physicians and 2,600 active volunteers. It operates 10 hospitals. Its annual payroll and benefits amounted to $1.1 million in 2012.

Memorial has 565 employees, a 123-member medical staff and 168 active volunteers. It is the largest employer in Mason County.

“Our primary goal in this process has been to preserve Memorial Medical Center as a viable healthcare provider in this location for future generations,” said board chairman Al Deering. “That is our key responsibility as the board. After a thorough evaluation, we believe that joining Spectrum Health is the best possible solution for the communities and people we serve, as well as for our doctors and staff.

Mason County’s health care needs are likely to see more diversity.

“Our medical staff will benefit from additional professional opportunities and enhanced support from being part of a strong, integrated healthcare system,” Dr. Steven Strbich, chief of staff said. “It will also help us in recruiting new physicians to practice here.”

“The details will be negotiated over the next few months,” Deering said. “Our discussions with Spectrum Health have been very positive and we expect no problems reaching a definitive agreement.

“Our local board will continue to have a significant decision-making authority and oversight for the hospital’s operations. We feel confident that Spectrum Health will fully support our goals in this part of west Michigan.

“This is a significant step in an excellent working relationship that has existed between our two organizations for many years,” Breon said.

Breon said the courtship is not over yet. “We are walking down the aisle but we haven’t said the vows yet.”

“Throughout the process Memorial’s board will retain the option to remain independent,” Deering said. “However, we believe Spectrum Health understands west Michigan and shares our commitment and sense of mission. It is a very sound cultural fit for us and will allow us to servce the community even better as far into the future as we can see.”

http://www.masoncountypress.com/2013/05/10/memorial-announces-inten...

 

As a private citizen curious over the last seven months of a partnership project, I must once again claim that the local hospital has failed in its bedside manner to the community it serves.  Every platitude that comes out of Vipperman's and Deerings' mouths tell the rest of us basically nil.  An agreement was reached, it's best for all parties-- no details.  Isn't the patient allowed to sign a consent form here?

 

This comes from the same people who allowed their hospital finance board to violate the rules to get the expansion project underway (as seen in commissions of-sins-hospital-expansion) and other issues dealing with Open Meetings Act violations , lacks of quorums, missing records, etc in Public Official Chicanery and the $19 Million Secret MCHFA Meeting. 

 

What I see developing here amounts to a padded hospital bill in the future, and a loss of local autonomy in our health care choices, which should fit in well when Obamacare is implemented in full.  Should we expect any difference in partnerships that reduce free market competition?  But what are your thoughts on this at this early stage of Spectrum's and Memorial's engagement? 

[masonco]

When my Husband was transferred to Reed City those 4 times in Sept and until he died in October, Spectrum was already at Reed City. They had more up to date equipment and were able to consult with specialists from grand rapids when necessary. They were more effecient in billing and actually the bill was lower than when he was at Memorial ER. I can not compare then inpatient part because he was in critical care at Memorial and not in Reed City.  My first clue regarding Spectrum coming in was when they decided to hire a hospitalitist. I sure hope this merger will help with negative attitudes of some who work at memorial and helps steamline the billing system. 

McLaren has been buying out a lot of small hospitals and I saw first hand the negative effects on the community in Cheboygan. They fired all the employees and no longer offer inpatient care. So the Cheboygan people have to go to Petosky or St. Ignance for inpatient care. The few people they hired back took massive pay cuts, lost all their accrued vacation time, lost benefits and even their retirement promises. They even shut down the attached nursing home facility.

[XLFD]

Thanks Masonco for pointing out your observations.  What happens with a hospital after these mergers is usually a good indication of how 'healthy' the hospital may have been before it was acquired.  Our hospital board goes into this deal saying that they are fit as a fiddle, but we will see what the Spectrum people's diagnosis turns out to be, and whether MMC will need some critical care procedures like Cheboygan, or more cosmetic care like Reed City. 

The $14 million plus upgrades made possible through bonds and the talk of merger both happened at roughly the same time, so are we to presume that Spectrum Health (and/or others) were pushing for such upgrades prior to acquisition? 

 

[masonco]

Those are good questions. I do know that with Cheboygan there were a lot of repairs required before they met new codes. When a company purchases an "old" hospital, they now have to bring it up to the NEW building requirements. McLaren decided that basically rebuilding the nursing home that was part of the Cheboygan hospital was not worth the costs.

So yes that could be the reason our local Memorial Medical center did bring a lot of things up to NEW standards so they can continue to operate. I did not hear if Memorial Medical center is being bought out by Spectrum or merging with Spectrum? Again requirements change to new codes if purchased vs merging as part owners.

I have heard a lot of complaints about our staff here being rude and not as caring as before. Personally I think they are afraid they might not have jobs in the near future or if they do retain their jobs they may end up with decreased pay, benefits, senority etc.  McLaren in Cheboygan had every employee re-apply for a job and then they were paid less than previous, loss all their benefits including accumulated vacation time, and some jobs were taken by experienced employees from other McLaren sites. So I understand the fear of the unknown here.

[Angie]

I was thinking that Mercy Health Partners out of Muskegon they seem to have it together..

 

[Jane]

I think a lot of people will have more trust in using the local hospital now, MMC has a pretty rough reputation as far as not providing good quality care. I was happy to hear Spectrum is coming in, I think we will have better care and quality than what we get now. some people fear going to MMC and I would as well, Spectrum is top of the line as far as I am concerned and am happy they are taking over(?).

Were things done properly? That is another story, but unless this is a publicly funded operation at MMC I don't think they owe anybody any explanations.

[XLFD]

Spectrum Health is a brand that has a good reputation.  Memorial has a more mixed review as you say, and attention to service will likely be better under Spectrum.  

But, if the hospital maintains that we have a community hospital, and that also claims to be owned by the community it serves, it should have been more transparent in any sort of negotiations in order to not only hear the concerns of the community, but also to explain their rationale for their choice of Spectrum over others (or even for why they believe a merger is needed for the betterment of all).  If they don't, they should just drop the pretenses, and just tell us they are out there for the bottom line only, and not for the general health and welfare of the community.

Now that 'health care' has become a publicly mandated right paid for by a lot of taxes, the consumers need transparency to make sure they're getting the best product and the best deal from their private-public partnerships.  I can tell you now, that isn't going to happen with the new health care mandates, and the socialization of medicine, but that is far from just a local problem.

[Lisa O'Brien]

Everything a company ever states is from a marketing/public relations stand point - no entity is ever going to state they are out for the bottom line.

[Willy]

I think masonco makes a very valid point about how Spectrum can affect what services may or may not be provided in Ludington. Memorial could end up being a well equipped modern marvel or a stripped down version of an urgent care clinic. I hope the people this hospital serves will have a say in what the end product will be.

[masonco]

I don't think there will be an expansion of specialized serves offered at Memorial. For example  For 1 or 2 patients you are going to have heart specialist (doc and nurses).  I think it will continue with general med, maybe orthopedics will continue here, but I don't see them switching most specialties here. Spectrum in Grand Rapids has an entire building specializing in patients with heart issues.

Reed City has minimal inpatient and a lot of in patient rehab there.  Maybe we will luck out and they will bring cancer treatment back instead of sending everyone to Muskegon hospital for radiation and chemo.

[XLFD]

Spectrum Health will likely go through a complex algorithm to decide what services to add or discontinue here if they go fairly strictly by a business model.  For instance, if a nearby Spectrum hospital offers the same service, they may rationalize that offering the same service in Ludington might be inefficient for them to maintain, as they will see the same patients come through their doors elsewhere. 

However, if a rival hospital/health network is getting all the patients in the Ludington area because MMC did not have the specialized service, Spectrum may just develop local service to get those patients back here.  Cancer treatment may just be one of those services brought back in. 

So it is difficult to make an informed decision about whether it is good or bad overall, unless we become privy to what is likely to happen, and/or have some market research at hand