SMMC to decide on MaineHealth May 20 (May 15, 2008)

By Molly Lovell
Staff Writer
On May 20 the Southern Maine Medical Center Board of Trustees will vote whether or not to accept membership into MaineHealth, the state’s largest integrated healthcare system. Other systems include Eastern Maine Health and Central Maine Health Care.
“It’s a staff of healthcare professionals whose job is to organize healthcare services in what amounts to 16 counties in Maine,” is how SMMC President and CEO Ed McGeachey describes MaineHealth.
Maine Medical Center in Portland is MaineHealth’s flagship hospital. Other members include Miles Healthcare, St. Andrews Hospital, Spring Harbor Hospital and Stephens Hospital, as well as outpatient care including primary care physicians.
MaineHealth will have 10,280 employees if SMMC joins its ranks. Currently, the largest employer in the state is Hannaford Bros., with nearly 9,000 employees. Although MaineHealth’s total number of employees would top that of Hannaford’s, MaineHealth would not be considered the state’s top employer because each member of they system is considered independent.
Southern Maine Medical Center and MaineHealth have been affiliated since 1993. As an affiliate, SMMC has seen benefits through group purchasing in terms of supplies and technology costs with other MaineHealth hospitals. Southern Maine Medical Center will be MaineHealth’s second largest member if the board approves full membership.
As a full member SMMC will have access to lower borrowing rates and see increased debt capacity.
McGeachey said a trend in healthcare consolidation has been apparent since SMMC was founded in 1899. He said after World War II a “revolution and evolution of medical care,” was seen. He said healthcare became much more complex, technology improved and facilities began to offer more specialized care.
Around World War II there were 122 hospitals in Maine, now there are 38. During that same time there were four hospitals in this community, the last one, not including SMMC, closing its doors in the 1970s.
McGeachey said 50 percent of hospitals in Maine and the United States are part of a healthcare system such as MaineHealth, comparing membership to a “security blanket,” because of benefits.
One such benefit is to develop an electronic medical record system that “ties the healthcare community together,” McGeachey said, adding that MaineHealth will commit $2.2 million to this effort.
Medical Staff President Robert Ferandez said while  SMMC has a system that handles inpatient data such as labs and X-rays, the hospital is lacking in how they access outpatient activity.
“The trouble is what goes on in a physician’s office and how it gets here,” he said.
McGeachey said SMMC will have access to a program called VitalNetwork through MaineHealth membership.
“It provides a second layer of monitoring for patients in the Intensive Care Unit.”
He said nurses and physicians sit in a remote location, not in a hospital, and monitor a patient’s data. He said it allows them to focus on the patient, and not another crisis that would happen if they were in a hospital.
“We were involved intimately in the development of this so when the system comes, it’s something we’ve been involved in developing,” said Donald Burnham, chairman of the board of trustees.
MaineHealth will also commit an $18 million investment to build medical offices, as SMMC wants to recruit more physicians to the hospital.
Burnham said the hospital can opt out of the agreement at the end of two years and still retain its affiliate status but said he didn’t anticipate that happening.
McGeachey said if MaineHealth is sold to a for-profit organization, they would also have the opportunity to take the hospital back.
The agreement guarantees if MaineHealth decided to sell SMMC, a charitable foundation would be formed equal to SMMC’s assets, currently $82 million, at the time of membership and it would continue to operate in the community.
McGeachey said no services could be ended, moved or downgraded without being approved by the SMMC board. He said he didn’t anticipate job loss, adding that the hospital’s relationship with MaineHealth would enable them to see job growth.
McGeachey said SMMC will pay dues to MaineHealth, which is .45 percent of their annual net revenues. He said the hospital will have access to legal and consulting resources, something they currently do not have. He said this savings alone will cover the cost of dues.
Burnham said representatives of the board, medical staff and management team conducted site visits to other MaineHealth hospitals and saw favorable responses from current members.
Medical Staff President Robert Ferandez called members’ transition into MaineHealth “transparent,” to the general public.
McGeachey said SMMC will still remain a non-profit, independent facility and employees will work for SMMC with their salary, wages, policies and procedures.
McGeachey said SMMC is not talking about this formation with MaineHealth as a way to deal with debt issues related to the new emergency department or any other projects.
“Our emergency department was the biggest healthcare expansion in the history of York County – it shows the strength and commitment of the organization,” Burnham said, adding annually they provide $8 million in uncompensated care.
He said this has been a carefully planned project since MaineHealth approached them about becoming a member in 2005.
McGeachey said SMMC isn’t interested in advancing technology in terms of heart or neurosurgery, or developing a neo-natal care department, adding, “We’re interested in providing the best possible care we can provide to people in the community.”
McGeachey, who has been with SMMC for 32 years, also said he is not interested in this transition for his own financial gain or career advancement, adding that will still report to the SMMC board, who determines salary.
Burnham added that healthcare is riding a “wave” in terms of technology and sophisticated, capable care.
“That’s not going to stop. You can’t stand in place. If you stop moving forward your moving backwards.”
Contact Molly Lovell by calling 282-4337 ext. 219 or email news@inthecourier.com


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