BRMC, OGH Start Integration Work

Officials from Bradford Regional Medical Center and Olean General Hospital are taking the first steps toward fulfilling requirements for the integration of the two facilities to create a healthcare system to meet the needs of patients in northwest Pennsylvania and southwestern New York State.

According to BRMC President/CEO George E. Leonhardt, Steering Committee meetings have begun for the purpose of reviewing regulatory requirements and setting time frames to complete what's expected to be a nearly one-year process.

On Oct. 20, officials from both facilities announced to the media and respective hospital groups a decision by their Boards of Directors to sign a non-binding letter of intent to integrate the two not-for-profit organizations under a new parent company. This week, hospital employee work groups met for the first time to begin fact gathering in the "due diligence" process.

"We are gathering information that will be reviewed by Olean General Hospital, and visa versa, as we assess each others' strengths and weaknesses," Mr. Leonhardt explained.

The Steering Committee, comprised of members from each hospital board and community members, will work through the process with consultant Marc Voyvodich, Stroudwater Associates. Last week's meeting of the Steering Committee was held in Olean.

Mr. Leonhardt said the discussions addressed specific tasks and timelines related to due diligence, regulatory application and approval requirements, and the development of an operating plan that will serve as the blueprint for linking the two institutions from both a clinical and business standpoint upon final approval of the integration.

The operating plan is targeted for completion in the spring of 2009. From that time period until about the end of September 2009, review of the plans by various regulatory agencies in both states takes place.

"It's about a six-month process," Mr. Leonhardt said, noting that it's "business as usual" at both organizations in the meantime.

Once the regulatory review process is completed, it's expected that both organizations would be operating as the new healthcare system by Oct. 1, 2009, when officials would carry out the operating plan.

With regard to the proposed operating plan, Mr. Leonhardt said the hospital families would be an integral part of the process. "Its development will include a lot of people at the hospital as we work through each area of interest," the hospital president explained.

At the December meeting, the Steering Committee expects to review topics including clinical service lines, management, support services and administrative support elements at both institutions.

"We've just begun the process, but I can say that there is a lot of excitement and optimism," Mr. Leonhardt said. "There's a lot of energy to get started and to get this process completed."

Hospital officials have said that this locally driven and orchestrated initiative will help ensure access to vital medical care and health services for more than 150,000 residents living in the two health systems' combined service areas.

Among the goals and benefits of integration are the growth of shared services, the enhanced ability to attract and retain high-quality medical specialists, clinicians and management staff, and enhancing business stability by establishing regional healthcare services, greater purchasing power and the ability to share overhead.

Anyone with questions regarding the integration is invited to call BRMC at 814-362-8298 or log onto the form at www.brmc.com.

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