Under a letter of intent signed today, Champlain Valley Physicians Hospital Medical Center (CVPH) in Plattsburgh, NY, and Elizabethtown Community Hospital (ECH) have agreed in principle to become part of a four-hospital, cross-lake affiliation under Fletcher Allen Partners, the parent organization of Fletcher Allen Health Care in Burlington, Vermont, and Central Vermont Medical Center (CVMC) in Berlin, Vermont. The purpose of the proposed affiliation is to establish a coordinated, highly integrated health care system that will improve quality, increase access, and lower costs of health care in the communities served by the four hospitals in Vermont and upstate New York.
The letter of intent was unanimously approved earlier this month by the boards of trustees of both Fletcher Allen Partners and Community Providers, Inc. (CPI), the parent organization of CVPH and ECH. It outlines the essential terms of the proposed affiliation and is subject to the completion of definitive legal agreements, due diligence reviews by all parties, and regulatory approvals by the New York Department of Health and Federal Trade Commission. The hospitals hope that this work can be completed, and the proposed affiliation can become effective, later this year.
Fletcher Allen Partners was established in October 2011 to develop a more coordinated system of care throughout the region. It currently has approval powers over significant actions by Fletcher Allen Health Care and CVMC, including the election of trustees, the adoption of annual budgets and strategic plans, the development of new programs and services, the selection of hospital CEOs, and other major transactions. If the proposed affiliation becomes effective, Fletcher Allen Partners would have these same powers over CVPH and ECH.
‘Pursuing an affiliation with Fletcher Allen Partners is a wonderful opportunity for CVPH Medical Center and Elizabethtown Community Hospital and the thousands of North Country residents that we serve,’ said Stephens Mundy, president and chief executive officer of CPI and CVPH. ‘This proposed affiliation would increase access to care, enhance quality and provide much needed services more cost effectively than if we continued to operate without such collaboration. CVPH’s recent cardiac surgery affiliation with Fletcher Allen is just the first of many initiatives that we expect to occur which will expand our communities’ access to care closer to home!’
"In today's health care environment, increased collaboration among hospitals and affiliated physicians is essential to providing the best possible care to our patients," said John Brumsted, MD, president and chief executive officer of Fletcher Allen Health Care and Fletcher Allen Partners. "Pursuing an affiliation with CPI makes sense from a geographic and patient care perspective as we have had the privilege of providing critical safety net services -- trauma and neonatal care -- to the people of the North Country for decades. The proposed affiliation would strengthen regional support for these and many other vital programs that serve New Yorkers and Vermonters alike, and also enhance our teaching and research efforts."
‘We have already seen clinical benefits as a result of establishing Fletcher Allen Partners,’ said Judy Tartaglia, president and chief executive officer of CVMC. ‘For example, the telemedicine link between the intensive care unit at CVMC and intensive care specialists at Fletcher Allen allows more critically ill patients in Central Vermont to remain near their homes, yet benefit from highly specialized intensive care expertise. We have also already seen substantial savings in purchases of equipment, supplies and pharmaceuticals.’
Governance and Management
Upon implementation of the proposed affiliation, Fletcher Allen Partners would be governed by a board of trustees that would include representatives appointed by CPI, Fletcher Allen and CVMC. Dr. John Brumsted, who currently serves as CEO of Fletcher Allen Partners, would continue in that role; Judy Tartaglia would serve as executive vice president, Vermont Community Hospital Division, and Stephens Mundy would serve as executive vice president, Northern New York.
System Activities
Under the proposed affiliation, the four hospitals would participate with Fletcher Allen Partners in developing and implementing system-wide initiatives and programs that promote their shared objectives, including initiatives that:
increase access and improve the quality of health care services through joint clinical initiatives,
centralize administrative functions to reduce costs and improve efficiency,
engage in regional planning to address regional health care needs, and
explore the development of a common electronic health record platform over the next three years.
Existing Hospitals
Under the proposed affiliation, all four hospitals, including CVPH and ECH, would retain their current identities. Subject to Fletcher Allen Partners' oversight powers, each hospital would remain a separate free-standing hospital with its own board, management, workforce, licensure, medical staff (including credentialing and governance), and endowment.
Next Steps
Both New York hospitals, through their parent, CPI, and Fletcher Allen Partners will now begin development of the binding legal agreements for the proposed affiliations, engage in a due diligence process, and seek state and federal regulatory approvals. These processes are expected to take several months.
About CVPH
CVPH Medical Center is a private, not-for-profit hospital established in 1967 with the merger of Champlain Valley and Physicians Hospitals. It is the largest health provider and employer in New York’s North Country. CVPH is a partner with Adirondack Medical Center and Hudson Headwaters Health Network in the Adirondack Health Institute (AHI). AHI is involved with the Adirondack Region Medical Home, one of eight demonstration projects in the nation funded by the Center for Medicare and Medicaid Innovation, and the new Medicaid Health Homes, a new approach in New York to providing enhanced care to Medicaid enrollees who have chronic conditions. CVPH established its Champlain Valley Heart Center in 2005 and has earned national acclaim for outcomes and quality.
About Elizabethtown Community Hospital
Elizabethtown Community Hospital is a 25-bed critical access hospital providing healthcare to communities throughout Essex County, NY (600 sq. mi.). It offers an inpatient unit offering both acute and sub-acute care, a 24-hour emergency department, access to specialists, a complete therapy department, on-site laboratory and pharmacy, an all-digital radiology department, chemotherapy / infusion treatment, and a cardiac rehabilitation program; all supported by advanced technology throughout the facility. The hospital owns a network of community health centers, offering convenient access to primary care throughout the area and is the only critical access hospital in Essex County accredited by the Joint Commission, reflecting its commitment to achieving certain performance standards.
About CVMC
Central Vermont Medical Center consists of a not-for-profit acute care hospital offering a full spectrum of inpatient and outpatient services and 24-hour emergency care, National Life Cancer Treatment Center, Woodridge Rehabilitation and Nursing, and 18 medical group practices. The mission of CVMC is to work collaboratively to meet the needs and improve the health of the residents of central Vermont. Visit www.cvmc.org for additional information.
About Fletcher Allen Health Care
Fletcher Allen Health Care, together with its partners at the University of Vermont College of Medicine and the College of Nursing and Health Sciences, is Vermont’s academic medical center. The mission of Fletcher Allen Health Care is to improve the health of the people in the communities served by integrating patient care, education and research in a caring environment. Fletcher Allen serves as a regional referral center -- providing advanced care to approximately one million people in Vermont and northern New York -- and as a community hospital for approximately 150,000 residents in Chittenden and Grand Isle counties. More information about Fletcher Allen may be found online at http://www.fletcherallen.org or on our Facebook, Twitter, YouTube, and blog sites at www.fletcherallen.org/socialmedia.
Source: Fletcher AllenBURLINGTON VT ‘3.26.2012