Healthy partnership
SVMC explores collaboration with Kaweah Delta hospital
Sierra View Medical Center (SVMC) has been exploring ways to meet the ever-changing healthcare needs of the residents in the region. The hospital has recently been considering an opportunity that will potentially lower the cost of the community’s health care, while remaining as an independent hospital.
SVMC board of directors is considering a partnership with Kaweah Delta. The hospital’s respective board of directors formally met for the first time for a joint board meeting earlier this month to discuss this opportunity.
“This is something that Sierra View has been hoping to achieve for some time, as it aligns with the mission, vision and values which focus on partnerships and collaboration,” said Donna Hefner, SVMC CEO and president. “It has the potential to be extremely valuable as we move forward caring for residents in Tulare County and surrounding areas. Additionally, I have had several positive discussions with Gary Herbst, Kaweah Delta’s Chief Executive Officer, about this partnership.”
Herbst shared his reason for the possible partnership between the two hospitals.
“Hospitals are no longer called to just care for people who are the sickest, they are asked to take care of the health of an entire population. To do that effectively, you have to have broad geographic coverage, and that is where affiliations and partnerships are becoming norms of change,” Herbst said. “The indication from our joint board meeting is that we were both very excited about it. Sierra View would fit nicely as a partner because they are already taking care of Tulare County and its population.”
Yesterday afternoon, SVMC board of directors decided to move forward in the process of creating a joint powers authority (JPA), which would potentially allow both district hospitals to further reach their goals of providing the best care for their communities locally, and become stronger economically.
With a vote of 4-0, SVMC’S board of directors agreed that the hospital should continue the process of collaborating with Kaweah Delta. However, board member Gaurang Pandya suggested that the hospital put more efforts into reaching out to the community to inform them of this potential joint partnership.
“The board recommended for administration to proceed with reaching a joint powers agreement, which is the document that guides the joint powers authority,” Hefner said. “This allows for two district hospitals to work together because we are governmental entities, so there are laws that prohibit certain things that we can work on. Through the authority
we can work on those initiatives jointly.”
A joint powers agreement or a joint powers authority (JPA) allows public agencies including cities, counties, schools and health care districts to work together.
As part of the hospitals’ proposed JPA, together they would focus on services they both offer independently and bring them together to provide the same service, but at a lower cost to each hospital. These agreements allow hospitals to achieve cost-saving benefits, but still remain independent.
For example, working together on specific projects such as the joint recruitment of physicians or having materials management teams work together to align purchases of pharmaceuticals or other supplies. If the hospitals were to make those joint purchases, both hospitals would incur the savings that come from buying in bulk.
“We are excited from the standpoint that it just furthers our communication and allows us to work on things that can be cost savings to both the healthcare districts,” Hefner said.
Under this arrangement, employees would remain with their current hospital, both hospitals would continue to be governed by separate boards and management teams, and each hospital would maintain a separate medical staff.
“Our patients will still be respectively treated here, as well as those patients that are served in Visalia,” Hefner said. “We maintain our independent operations. We still have independent boards that govern us.”
Another benefit of JPAS is that they allow for growth, so that they can potentially reach out to other health care partners to join.
If both hospital boards approve moving forward, Kaweah Delta and SVMC could potentially be moving forward as early as 2019 with one or two small projects under the JPA.