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RURAL HEALTH CONFERENCE

RURAL HEALTH CONFERENCE. Columbia, Missouri June 5, 2013. Audrain Medical Center’s affiliation experience. In 2004 committed to independence as a sole community hospital but curious about affiliation In 2008 adopted an “affiliation lite” approach –helpful but no infusion of capital available

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RURAL HEALTH CONFERENCE

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  1. RURAL HEALTH CONFERENCE Columbia, Missouri June 5, 2013

  2. Audrain Medical Center’s affiliation experience • In 2004 committed to independence as a sole community hospital but curious about affiliation • In 2008 adopted an “affiliation lite” approach –helpful but no infusion of capital available • In 2012 began pursuit of a full merger in order to secure access to capital and share operating expenses • On April 1, 2013 joined SSM Health Care an 18 hospital system providing services in Missouri, Illinois, Oklahoma, and Wisconsin

  3. AMC’s need for affiliation grew over time • Declining demographics in service area (zero population growth, more uninsured, and little growth in per capita income) • Growing competition from tertiary providers (more outmigration of patients) • Reduced access to working capital (ACA, RAC, DSH, Sequester, et al) • Ageing facility • More regulatory requirements (EMR, VBP, ICD10, et al)

  4. Lessons learned at AMC about affiliation • Discuss affiliation with stakeholders well in advance of need • Once the decision is made to pursue a merger it takes 12-15 months to complete so start while you still have sufficient working capital • Select an affiliation consultant carefully (someone who can construct a compelling RFP and negotiate well on your behalf) • Over communicate with stakeholders during the process and after it is completed • Culture trumps strategy (synergy eases the transition process and increases the odds of future success)

  5. Questions please?

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