Despite some questions and concerns about the wisdom of pursuing a management agreement with St. Luke’s Hospital, Cook County North Shore Hospital Board members said Dec. 15 they intend to move forward with the process as originally planned.
The decision to enter into an agreement with St. Luke’s was made by the board in November, and was preceded by the resignation of hospital administrator Diane Pearson, who has held the position for more than 20 years. Pearson did not give the board a date on which her retirement will begin, but agreed to stay and help with the transition process, including assistance with the St. Luke’s agreement.
Board member Tom Spence, who heads the search committee, explained last month that St. Luke’s was chosen because of its proven reputation of managing smaller hospitals while maintaining their local identities and standing within their communities. And as part of the transition, he stressed, the North Shore Hospital board fully intends to hire a local administrator and keep control of all decision-making.
But Dr. Sandy Stover, speaking on behalf of the medical staff, told the board she had some serious misgivings about the proposed agreement, and the decision to pursue it in the first place. She said “things were moving faster than I’d like to see,” and that there were too many unanswered questions and “strong concerns” among the physicians about outside management. Furthermore, she said, the medical staff has had no access to the tentative contract or input into the ongoing negotiations.
“The speed of this is not warranted, and there are repercussions looming,” Stover warned. “This may impact the quality of care, and we’re not included. I don’t get it, frankly — and I’m very disappointed.”
Kristin DeArruda Wharton, an RN and licensed school nurse, also addressed the situation during the public comment portion of the meeting. She said she was “concerned” about the decision, and believed more public input should be sought before any deal is finalized “We need more opportunity for public comment… and I hope these decisions aren’t being made without the public and staff being given a chance for input,” Wharton said.
Spence responded that there was a lot of thought put into the decision, but in the end the board agreed it was the right thing to do — both for the hospital and the community. “That’s what happens when the administrator who has been here for more than 20 years resigns, and the board looks at its options,” he said. “But let me assure you that the medical decisions will continue to be made by medical people here, not St. Luke’s, and this board will have the final say on issues and won’t give up any of its control.”
Spence pointed out that the Grand Marais facility is not alone in its pursuit of a management agreement. He said of the 79 rural hospitals in the state, 14 have such agreements, and another 36 have sold out or leased to another, larger facility.
Board Chair Howard Abrahamson also defended the decision to negotiate with St. Luke’s.
“They’re not going to take us over — that’s not the nature of a management contract. We’re trying to improve our strengths as is being done elsewhere in the country by consolidating with a larger facility,” he explained. “This allows us to enjoy the benefits of being part of the larger whole while not giving up local control.”
Moreover, said Abrahamson, “Giving up ownership or leasing would have been the easier decision, but this board is working to preserve the identity and integrity of the North Shore Hospital.” And, he added, “from an operational point of view, this doesn’t change anything.”
Stover said she still wasn’t convinced the management agreement was the best course of action, and persisted in her request to see the draft contract. Spence told her that “that’s not the way the process works,” and Abrahamson assured her that the medical staff will not be denied access
” to the document once it is in a more advanced stage. Still, said Stover, “I’d prefer to see it sooner than in a complete form.”
Meanwhile, Pearson reported that the negotiations with St. Luke’s are under way, with another meeting set for later in the week. She said St. Luke’s attorneys drafted the working proposal, so it is up to Cook County’s attorneys to be reactive. “Nothing has been agreed to yet,” Pearson said. “We’re trying to resolve some issues so it is more favorable to us.”
In a related matter, Spence said a review and ranking of the 16 applications for hospital administrator is expected to begin soon. Abrahamson said the board is committed to including both the medical staff and Sawtooth Mountain Clinic directors in the review and interview process.
Frank Hansen, chairman of the clinic’s board, said he was satisfied with the way things were proceeding. “The clinic is not involved in these negotiations at all — it’s your baby and we understand that. We have no quarrel with what’s going on so far,” Hansen said. “We just ask that we be kept acquainted with what’s going on.”
“Everything will continue to be done in the public eye,” Abrahamson promised.
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