Phil Castle, The Business Times

Chris Thomas foresees what he considers a number of benefits to Community Hospital joining a regional health care organization —  relieving debt, implementing a new electronic medical records system and gaining funding for new service lines and equipment.

The biggest benefit,
though, is the assurance the hospital will continue to offer a choice in health care in the Grand Valley, said Thomas, president and chief executive officer. “We want to make sure there’s a Community Hospital in our community for years to come.”

The board of trustees overseeing Community Hospital has entered into a formal agreement to discuss the possibility of joining Centura Health.

Centura Health provides health care in Colorado and Kansas with 17 hospitals, 13 affiliate hospitals and 21,000 health care professionals. Centura Health also operates physician practices and clinics, neighborhood health centers and two senior living facilities.

Peter Banko, president and CEO of Centura Health, stated in a news release he’s excited to enter into formal discussions about how Community Hospital and Centura can work together. “As a health care provider who is as mutually passionate about treating the whole patient, mind, body and spirit, we appreciate the opportunity to discuss becoming an integral part of their flourishing communities.”

Signing a letter of intent to enter into exclusive discussions to join Centura Health means work will continue to reach a definitive agreement, Thomas said. That also will include due diligence and an exploration of what it’s like to be a part of Centura Health. The goal is to finalize an agreement with 120 days.

If the deal proceeds, the most likely agreement will involve what Thomas called a member substitute merger in which Centura Health would assume the seats on a governing board and along with them ultimate authority over Community Hospital. A community board would take on an advisory role in developing and implementing budgets and strategic plans.

Employees of Community Hospital — including Thomas — would become employees of Centura Health.

As a faith-based nonprofit organization, Centura Health sponsors hospitals under the Catholic Health Initiatives or Adventist Health System. Thomas said Community Hospital would be sponsored under the Adventist Health System to avoid changes in its policies on birth control and reproductive health services.

While a transaction wouldn’t involve any cash payment, Centura Health would take on the $70 million in debt on the building housing Community Hospital, Thomas said. Centura Health also would install an electronics medical records system at the hospital and its clinics, a project that would otherwise cost $12 million to $15 million, he said. In addition, Centura Health would agree to a three-year capital commitment to new service lines and equipment as well as donate to the hospital foundation for efforts to promote the health and well-being of the community.

Possible additions to the Community Hospital campus include a cancer center as well as additional beds for orthopedic patients, Thomas said.

The match between Community Hospital and Centura Health appears to be a good one, Thomas said. “It really can be a win-win.”

Centura Health would have an opportunity to expand its organization in its efforts to provide services statewide as well as gain the expertise of Community Hospital physicians and staff, Thomas said. “The real value in Community Hospital is the people.”

The match also would meet the long-term goals for Community Hospital, he said, in relieving debt, gaining funding for new service lines and equipment and retaining a level of local control.

Moreover, Community Hospital will retain its identity and culture along with certainty in an uncertain health care industry the hospital can offer a choice in health care in the Grand Valley, Thomas said. “It’s the best way to ensure vitality long-term.”