Hospital Dist LetterR EDI A E CENTER
October 18. 2012
Otsego City Mayor or and Council
City of Otsego
8899 Nashua Avenue NE
Otsego, MN 55330
Dear Mayor and Council Members,
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Hy
New River Medical Center is hosting a Hospital District ity To*w nship Affiliation Forum on Monday,
October 29, 2012, at 7 p.m. in Hospital Board Room A to present information about New River Medical
Center's ongoing health system affiliation process. Elected representatives from each City Council and
Township Board in our Hospital District, as well as City Administrators, aro invited to att nd.
As you know, , a task force of New River Medical Center's nonprofit Board of Directors has been exploring
the pros and cons of affiliating with a larger hospital system. Across the country, hospitals are affiliating
and merging at a rapid pace to be in position for health reform, the rise of accountable care
organizations and the tightening of hospital/physician relationships.
The Affiliation Task Force discussed reasons that may compel New River Medical Center to affiliate
including growing market share, improving access to providers and services, and improving availability
of financial resources.
The task force established an extensive list of criteria for systems to address including the following
rust= - w6s:
Recruit and retain primary care and specialty providers who support local health care
Continue to invest in facility., capital and technological advances to remain state-of-the-art
Maintain, develop and grog services to ensure a continuum of health care services are offered
and provided locally
0 Disclose and share all past and current relationships and real/potential conflicts of interest
related to those relationships
Ensure financial viability by guaranteeing currant bond debt
Encourage and enable continued input by guaranteeing existence of a local governing board
and/or community representatives
The task force reached out to a number of systems including Allina, CentraCare, Fairview, Mayo, North
and Sanford. They received interest from Allin , CentraCare, Fairview and North. The four- interested
systems presented to the Affiliation Task Force and were analyzed on their ability to meet the
1013Hart Boulevard Monticello, MN 55362 e www.n wrivermedical. orn o 763#295,2945
established criteria. Each one of the systems invested a great amount of tirne and energy into
responding to the task force's requests, and we appreciate the interest and enthusiasm they have
shown to New River Medical Center.
Based on the systems' Initial presentations, the Affiliation Task Force has asked CentraCare and Fairview
to advance to the second round of interviews and site visits. The task force and no npr fit board will
further analyze these two organizations to gain a deeper understanding of the long term benefits they
would bring to New River Medical Center, our patients and our community.
The Affiliation Task Force and nonprofit Board of Directors plan to male a final affiliation
recommendation to the Hospital District board in December. If the Hospital District board is supportive
f the affiliation rec mmendati n, New River MedicaI Center will begin the process of due diligence at
the beginning of the new year. The due diligence process will take a number of months to complete,
The Hospital District board is not interested in "selling" the community hospital. New Kiger Medical
Center is looking for a partner who can help us achieve strategic governance, financial growth and
market stability in the changing health care industry to ensure that quality health care services are
available in this community fr generations to core.
We believe it is important to hold a special forum for hospital District it /Township representatives t
talk about this affiliation process because we value your participation, appreciate the interest you have
shown for New River Medical Center and understand the unique perspective you have as elected
representatives.
Although New River medical Center's District Board will not be convening during this forum, there may
e a quorum of the board present. TheCity/Township Affiliation Forum will be included on the board
meeting calendar and local media have been invited to attend. Each iter/Township can make their own
determination regarding public notice requirements.
New River Medical Center is also promoting a forum for community members on Tuesday, October 30,
2012, at 7 p.m. to share information about the health system affiliation process.
We rook forward to your attendance. Blease contact Daren Lindgren at 763.271.2270 or
karen.lindgren@newrivermedical.com to RSVP for the City/Township Affiliation Forum.
Sincerely,
4,0 00/1"L,
Ervin Daniel wski
Board Chair/Affiliation Task Force Member
cc: Lori Johnson, City Administrator
Marshall E. Smith, MHA, L N HAS, FAQ H E
Chief Executive Officer