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News


August 27, 2009

Hospital to Pursue Affiliation Proposal

Athol Memorial Hospital’s Board of Trustees, at this morning’s meeting, approved entering into dialogue with Vanguard Health Systems, Inc. of Nashville, Tennessee, regarding a possible affiliation. Major areas of consideration to be investigated include: a commitment from Vanguard Health Systems to fund the proposed Emergency Services Department addition and renovations of the existing hospital building; a commitment by Vanguard Health Systems to maintain and grow local hospital services including inpatient and outpatient services; and a commitment by Vanguard Health Systems to hospital governance by a Board of Trustees whose membership will include physicians and local community representatives.

“The next step is to talk with Vanguard Health Systems with our requirements squarely on the table,” explains Steve Penka, FACHE, Athol Memorial Hospital’s President and CEO. “There’s much ground to cover before we present the Board with a decision to make. Our ultimate goal in this process is to secure the future of this hospital and continue providing care to our community. We will keep everyone informed as we proceed.”

Athol Memorial Hospital issued a request for proposals in May of this year. Current events including internal capital requirements, the worldwide economic downturn, impending national and statewide healthcare reforms, and the need to implement mandated information and quality control systems contributed to the Board’s decision to explore affiliations with other healthcare organizations. An affiliation that would allow Athol Memorial Hospital to access the necessary resources for long term success in its mission to provide healthcare to the communities of the North Quabbin Region is and has been part of the Hospital’s strategic plan.

The request for proposal process culminated with multiple responses obtained from Vanguard Health Systems and other healthcare systems earlier this month. The AMH Board also voted to establish a seven member Special Committee comprised of Trustees and Corporate Officers, including the President of the Medical Staff, to direct and conduct the discussions and due diligence proceedings. Based on results of this process, the committee will develop a recommendation for the Board to either decline or enter into a definitive agreement.

Vanguard Health Systems is a for-profit, privately held company and currently owns and operates 15 acute care hospitals that have a total of 4,181 licensed beds, with six of the facilities having teaching programs in four primary markets in Phoenix, Arizona; San Antonio, Texas; Chicago, Illinois, and Central Massachusetts. Locally, Vanguard Health Systems owns and operates St. Vincent Hospital in Worcester and Metro West Medical Center in Framingham.

Athol Memorial Hospital is a 25-bed Critical Access Hospital and Primary Stroke Center, licensed by the Massachusetts Department of Public Health and fully accredited by the Joint Commission.