LUTHERAN QUILTERS – Members of the Quilts for Comfort Group stand between pews draped with some of the 205 quilts they made, in the Sitka Lutheran Church Tuesday. The group made the quilts for five local non-profits and one in Anchorage. The remaining quilts are sent to Lutheran World Relief which distributes them to places around the world in need, such as Ukraine, as part of Personal Care Kits. Pictured are, from left, Helen Cunningham, Kathleen Brandt,Vicki Swanson, Paulla Hardy, Kim Hunter, Linda Swanson and Sue Fleming. (Sentinel Photo by James Poulson)
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Daily Sitka Sentinel
Hospital CEO: Future Depends on Merger
By SHANNON HAUGLAND
Sentinel Staff Writer
Sitka Community Hospital is continuing to provide high-quality care despite staffing challenges, as the Assembly moves closer to a decision on whether to merge with the Southeast Alaska Regional Health Consortium.
That was one of the messages to the Assembly Tuesday night from Rob Allen, chief executive officer of the city hospital.
Allen said the hospital’s bottom line has improved this year, due to several factors, but that the hospital would face huge challenges if the merger deal with SEARHC falls through.
Those include need for more than $4 million for new imaging equipment, completion of the health records and billing system replacement, and replacing the modular Mountainside Family Healthcare facility. On top of that, the hospital faces “uncertainties” in Medicaid expansion funding under Gov. Mike Dunleavy, Affordable Care Act changes, and reimbursement of retirement system adjustments under Medicare and Medicaid.
When it comes to the future, Allen said, “Consultants have all been consistent in their opinions that SCH has a challenging and limited future as a stand-alone critical access hospital in today’s environment. ... The narrow way forward I saw toward sustainability last summer is nonexistent now. After losing staff and so much time, it would be extremely difficult to get back onto a track that could be successful.”
Allen laid out a few scenarios if the merger deal falls through:
Scenario 1 - Sitka Community Hospital will need to recruit a new CEO and finance officer; complete implementation of the health records system; and recruit additional providers and staff, among other steps. The likely outcome would be the need for city support from a dedicated source, and possibly running out of cash in two to three years if Medicaid/Medicare shrinks.
Scenario 2 - Sitka Community shifts its focus to a long-term care facility and drops its critical access status. That would mean losing 30 to 50 full-time jobs and the need for the city to take over the hospital’s multi-million dollar obligation to the PERS retirement system.
Allen said the SEARHC offer on the table is the “last and best offer.”
“If the deal does not happen now, SEARHC will compete even harder for patients,” he said. When Sitka Community faces its next cash crisis, SEARHC will have no incentive to purchase SCH’s assets, and if the hospital does not remain open, all patients and businesses will go to SEARHC and Sitka will be stuck with the retirement system bill, he said.
Allen said the current deal meets the city’s goals, but the Assembly and public need to do their part to make sure SEARHC holds up its end of the bargain. He said the city may still need to use its general fund to make PERS payments. He told the Assembly on a final note that Sitka Community staffing levels are reaching a critical tipping point and retention is a growing problem, but that “everyone at Sitka Community Hospital is dedicated to providing safe and high quality care.”
Other Business
In other business, the Assembly:
– approved the multi-hazard mitigation plan.
– authorized a $163,000 grant application.
– appointed Tyler Green to the Port and Harbors Committee.
– approved appropriations for PERS on-behalf payments and the utility bill subsidization program for low-income families.
– approved a resolution for a $5 million grant application to fix the wastewater treatment plant.
– authorized the vacation and sale of a right-of-way at 1318 Sawmill Creek Road.
– approved a lease between the city and Sitka Animal Hospital.
– approved a memorandum of understanding between Sitka Tribe of Alaska, SAFV and the police department for enhanced safety and services to victims of sexual assault and domestic violence.
– discussed ideas for changing the schedule for the winter-summer changeover of electric rates.
Further details will be provided in the Sentinel later this week.
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20 YEARS AGO
March 2004
Advertisement: Tea-Licious Tea House & Bakery 315 Lincoln Street Grand Opening! Freshly Baked Scones, Cakes & Pastries Innovative Salads, Soups & Sandwiches Harney & Sons Tea. Lunch * Afternoon Tea * Supper.
50 YEARS AGO
March 1974
Photo caption: National Republican Chairman George Bush takes a drink of water offered by Jan Craddick, Sitka delegate, during the Republican convention held here. Mrs. Craddick explained to Bush that the water was from Indian River, which means, according to local legend, that he will return.