EDITOR'S NOTE: The following statement - sent to all Clarendon Health System employees on Tuesday - was provided to The Manning Times as well. Interim CEO and COO Paul Schumacher wished to relay more information regarding a possible affiliation with a larger health system. The Manning Times' original article on the subject, covering last week's hospital board meeting, can be found by clicking here.
There are a multitude of stories and rumors circulating throughout the organization. In the spirit of transparency, please allow me to present you with the facts that exist as of today regarding a possible affiliation.
1. Healthcare is rapidly changing throughout the country and particularly in South Carolina. Rural hospitals are struggling, especially in states that did not expand Medicaid. Recent closures include Barnwell, Bamberg and Williamsburg.
2. As a result, the S.C. Department of Health and Human Services, in conjunction with the South Carolina Office of Rural Health, appropriated $40 million in "transformation" funds to encourage larger health systems and rural hospitals to affiliate. AAffiliation can mean many things: clinical affiliation, lease agreement, full mergers, etc.
3. In order to qualify for up to $4 million of the state funds, the first step was the completion of a sustainability study by an independent consultant. This is paid for by the S.C. Office of Rural Health. This has been completed here at Clarendon Health System.
4. Also, in order to qualify for the state funds, there must be a preliminary letter of intent between the larger (advising) hospital and the rural facility. This must be completed and sent to the state by March 31, 2016. The letter of intent does not obligate either party; it merely signifies to the state that two parties are engaged in discussions.
5. Clarendon Health System has lost money for the past sevearl years, except for fiscal year 2014. The Board of Trustees appointed me as interim CEO/COO on Dec. 22, 2015, along with the approval of a turnaround plan. That plan is expected to significantly reduce our expenses by several million dollars over the course of a full year, and we are diligently working that plan.
6. The board has also voted to engage in discussions with potential affiliate partners, especially to qualify for state funds.
7. As of today, the board has met with representatives from both McLeod Health and Palmetto Health. Last week, the board voted to only continue talks with mcLeod at this time. The paperwork that has been signed is a non-disclosure agreement between McLeod and Clarendon, which means that we can share information with one another.
8. In the meantime, we will continue business as usual, taking wonderful care of our patients, working the turnaround plan and planning for the future.
9. We will keep you informed going forward.
