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Stanly Regional Medical Center, Carolinas Healthcare System Strengthen Partnership
Thursday, January 29, 2009 — Stanly Regional Medical Center and Carolinas HealthCare System (CHS) are expanding their 15-year relationship to strengthen healthcare in Stanly and Montgomery counties.
Beginning March 1, CHS will provide management services to Stanly Regional under a 10-year agreement.
“We are building on a long and productive relationship with a partner that has proven to be worthy of our trust,” said John Lowder, chairman of the board of directors of Stanly Regional. CHS and Stanly Regional have worked together since 1995.
The management agreement will enable Stanly Regional to strengthen its focus on quality patient care.
“We will have available to us the resources of one of the largest and most respected healthcare organizations in the United States so we can concentrate on improving and expanding our services in the community,” Lowder said.
“Control of Stanly Regional remains in the community; the board will continue to make the decisions.”
The board of directors will continue to govern the medical center, retaining ownership of all assets.
The primary benefits to Stanly Regional will be an improved financial position, the opportunity to develop and expand services and recruit physicians.
“As an affiliate of CHS, Stanly Regional will purchase goods and services at a lower cost, receive higher payment for services, and have a better opportunity to borrow money,” Lowder said.
Lowder, added that Al Taylor will remain president and CEO. Stanly Regional and its related organizations employ more than 1,000 people in the community, generating an annual payroll of more than $45 million.
Another benefit for Stanly and Montgomery residents will be convenience in receiving the specialized services at Carolinas Medical Center, an 874-bed referral hospital in Charlotte.
“Our patients will have easy access to an academic medical center,” Lowder said.
“We anticipate more subspecialty physicians will complement the outstanding physicians on our medical staff, and that needed services will be developed in the community because of our partnership,” Lowder continued. He noted that Stanly Regional’s cardiologists, medical oncologists, nephrologists, psychiatrists and hospitalists are affiliated with CHS.
Two years ago, Stanly Regional and CHS developed a strategic alliance to increase healthcare services in the community.
“Stanly Regional West is the most visible example of the alliance,” said Lowder.
The building is in Locust and offers diagnostic imaging services and medical clinics.
“Carolinas HealthCare System and Stanly Regional have very similar philosophies. Our missions are similar and include caring for everyone who needs care, regardless of their circumstances,” said Michael C. Tarwater, CEO of CHS.
“Healthcare is a local service, and we look forward to working more closely with Stanly Regional in strengthening the medical center and the capacity to serve the community.”
Smaller hospitals in America are threatened by a combination of forces beyond their control, including decreasing payment for services, the cost of technology, shortage of doctors and healthcare professionals, increasing competition, and higher costs of borrowing money.
“Stanly Regional is in a good financial position today, but the Board has the responsibility to look well into the future at what’s best for the community,” Lowder said.
A majority of hospitals in America are now affiliated with large health systems.
“I am excited by the potential growth and development of medical care that will be available at Stanly Regional as we strengthen our partnership with CHS,” said Dr. Linda Lawrence of Albemarle Pediatrics.
The board of directors has been discussing an affiliation for two years, Lowder said.
“We have visited hospitals managed by CHS and talked with their management for six months, so we have made this decision in a careful way. We are confident we have made the right decision for the future of healthcare for the community.”
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