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Snoqualmie Valley Hospital Affiliation Board Meeting 11/13/19
In November voters will elect three of the five Hospital Board Commissioners, two of whom (Kevin Hauglie and Jen Carter) are running unopposed. The third race, between Board President Dariel Norris and fellow Commissioner Gene Pollard, is turning into an interesting contest. Norris is clearly the better choice for those who want and expect honesty, integrity and a positive vision for the future of healthcare in the Valley.
In summary, during his time as Hospital Commissioner, Pollard has been misleading, disruptive and even costly to Valley taxpayers through both his statements and actions.
For example, his 2019 King County Pamphlet Candidates Statement [1] reads in part, “The SnoValleySTAR once editorialized: Snoqualmie Valley Hospital makes big decisions with little public notice.” What he doesn’t disclose is this is old, old, obsolete news and not even a STAR editorial, but rather a nearly 8-year-old headline from a straight-up 2012 news story [2] which actually presented both sides of the story. A lot has happened since then, including the STAR’s subsequent endorsement in 2012 of Gene’s then opponent Kevin Hauglie as well as its resounding endorsement for Dariel Norris [3] which stated, “Norris has done her homework and is ready to take a seat. She comes with a bulldog/watchdog reputatIon … She’s a dynamo and has the energy to transform the dynamics and politics of the hospital board.”
Nor does Commissioner Pollard’s candidate statement tell you of his failed 2012 attempt to block construction of the new hospital. This one action cost the Hospital District -- and therefore taxpayers -- tens of thousands of dollars in legal fees and who knows how many hundreds of thousands of dollars in lost opportunity costs due to a year’s delay in construction [4] .
Voters should also know that in September of 2017 Commissioner Pollard was the subject of a formal harassment complaint [5] resulting from his comment that the hospital “would get more participants or patients if the facilitators would lead the exercises in bikinis.” He was reprimanded for this comment made to both Hospital staff and patients after he refused to apologize. Voter’s should also know that in June of 2018 Mr. Pollard was censured by unanimous vote of the other four Commissioners for “breaking protocol and going outside of the board’s governing duties” concerning a sensitive personnel issue. [6]
As a long time supporter of the Hospital District and a former Executive Director of the Hospital's Foundation, I've attended nearly all the monthly Hospital Board meetings for the past eight or so years, and on too many occasions to count have observed Commissioner Pollard demonstrate poor judgement and disruptive behavior.
The Valley should be proud of its new 21st Century Hospital facility which is regionally recognized for its medical excellence, Trauma Level 5 ER [7], and swing bed program. Under Dariel’s leadership, the District has streamlined the executive staff, benchmarked for efficiencies and strengthened the fiscal health of the Hospital. Because of her fair and kind approach to leadership, I've seen the other Board members grow and mature into a cohesive and collaborative working team. Finally, under her leadership, the District is pursuing an exciting opportunity to affiliate with Overlake Hospital to bring even more services and greater financial resources to the healthcare infrastructure of the Valley.
Dariel has played a significant role in bringing decency and professionalism to the Hospital Board and deserves your vote for another four year term.
Scott Scowcroft, Former Executive Director
Snoqualmie Hospital Foundation
West Seattle
Sources:
[1] King County Voters Pamphlet: http://bit.ly/32q0wfF
[2] SnoValley STAR 2012 article: http://bit.ly/2B94Kwd
[3] SnoValley STAR 2012 endorsement: http://bit.ly/2MfmTz3
[4] 2012 POLLARD Hospital CON Challenge: http://bit.ly/2BfGM2g
[5] 2017 POLLARD Harassment Complaint file: http://bit.ly/2VHrgpq
[6] 2018 POLLARD Censure vote: http://bit.ly/2LobSbA
[7] 2019 Press Release: SVH Trauma Level 5 ER designation http://bit.ly/35JyAFF
Affiliation Update
Affiliation Update
Affiliation Update
Affiliation update
During the July Board meeting, CEO Kim Witkop discussed how the Snoqualmie Valley Hospital doesn't engage in "surprise billing," and has a long tradition of being able to give patients pricing on procedures offered by the Hospital.
This is just one of many examples of why it's important to the Valley to have its own community hospital.
Affiliation update
7-11-19 SV HOSPITAL WORK STUDY SESSION: Affiliation Update
Affiliation update
6-13--19 SVH Board Work Study Session: Affiliation Update
Affiliation update
5-29-19 SVH Board Work Study Session: Affiliation Update
Five candidates filed for three open seats
Five candidates for Hospital Commissioner have registered with King County to run for elected office this fall.
Former Commissioner Kevin Hauglie and newly appointed Commissioner Jen Carter are running unopposed.
Commissioner Dariel Norris, who is the incumbent President of the Board, has two challengers. Commissioner Gene Pollard chose to run against her rather than to defend his current seat. Tim Noonan has previously run for Hospital Commissioner.
There will be a primary election on August 6th for Position number 2 because there are three candidates for this seat.
Jen was one of three candidates who applied to fill a vacant Hospital Board seat.
She has a business and marketing background and currently serves as Executive Director of Marketing for j2 Interactive, a healthcare information technology company. She is a Valley resident and has been seeking a way to serve the Community.
Cover Letter and Resume
Jen Carter in front of Hospital Board
Affiliation update
Entire meeting: https://youtu.be/AvuPobwFnUw
March 30, 2019
Danna McCall does a good job in updating the affiliation process as of the end of March.
She reports the Hospital District has signed a "Letter of Intent" with Overlake Hospital.
The two organizations will be spending the rest of 2019 discussing what an affiliation partnership might look like.
Meanwhile, SVH and Overlake have a history of working together, including "a direct transfer agreement " between the two ERs.
Section D: The parties agree in good faith to make every reasonable effort to complete the process described below and determine whether to proceed with the Transaction by December 31, 2019. Representatives of OMC and the District shall meet regularly to discuss details of, and work to reach agreement on, the Transaction structure including legal and financial terms. If OMC and the District are able to reach an agreement regarding the structure and terms relating to a Transaction, definitive agreements will be completed as soon as reasonably possible (the "Definitive Agreements"). The Definitive Agreements will be conditioned upon (i) the approval of the OMC Board of Trustees and (ii) the District's Board of Commissioners
The Snoqualmie Valley Hospital Board invited Overlake Hospital's Executive Team headed by CEO Michael March to introduce themselves, and discuss their ideas, philosophy and plans for bringing healthcare to the Valley.
Topics included state of the current healthcare sector, charity care and the opioid crisis.
February 27th, 2019
For the online article: http://bit.ly/2qsTg1k
For the pdf of the newspaper which contains more information on page 7, visit: http://bit.ly/2qqFs7t
Mammoth Hospital is getting a new CEO. His name is Tom Parker and he’s coming from Snoqualmie Valley Hospital, in Snoqualmie, Washington— a small town off Highway 90 east of Seattle at the foot of the Cascade Mountains. Parker and his wife, Kristen, live in Redmond, a suburb of Seattle.
Parker resigned from Snoqualmie Valley on October 19 and is set to begin at Mammoth on December 3. Current Mammoth Hospital CEO Gary Myers will retire on December 31 after 23 years of service. The overlap is to ensure a smooth transition. Myers will be joining his wife, Karilyn, in retirement. “Since she retired, I haven’t been able to wipe the smile off her face,” Myers said. He was smiling, too.
Last Friday, Myers and Parker attended Southern Mono Healthcare District’s Planning Conference in the Emerald Room at The Village Lodge. The meeting was open to the public. On the agenda, Item III was “Public Comments.” When The Sheet arrived, it was asked, ironically enough by former Sheet reporter turned hospital staffer Sarah Rea, to leave,. Rea said the meeting was being held in closed session and therefore closed to the public.
Hospital to pursue affiliation with Overlake
Breaking News:
Excerpts from 8-9-18 Hospital Board meeting minutes:
Affiliation Recommendation – Tom Parker. A status update on the affiliation process was provided by Tom Parker, CEO. The process plan and a comparison of the high level deal points were reviewed.
A follow up was made with all three facilities, Overlake Medical Center, Virginia Mason and University of Washington. University of Washington has declined to affiliate due to the combination of a lease to cover debt service and need for capital investment to expand services. Both Overlake and Virginia Mason remain interested.
Overlake would like to continue to move forward to explore the possibility of an operating lease agreement and continues to hit all of the high level deal points. Virginia Mason is interested in pursuing the possibility of a performance-based Management Services Agreement.
Benefits to the District and each facility were presented.
Recommendation: It was recommended to move forward to develop term sheets with both Overlake and Virginia Mason that would document the major deal points that would be included in a Letter of Intent.
CEO Tom Parker updated the Snoqualmie Hospital Board on the latest information he and his staff have gathered regarding affiliating with a larger healthcare organization. It appears that Overlake has shown the most interest and is leaning towards the lease option of the SVH hospital/clinic. If so, the Hospital Board might adopt a version of the Verdant Model in which include local organizations receiving Hospital District grants in support of public health initiatives.
During the Thursday, August 12th Board of Commissioners meeting at the hospital (6:30pm), Tom will formally present his affiliation recommendations.
Excerpts from the minutes of the 7-25-18 Work Study Session during which Tom gave his affiliation update"
Affiliation Update: Potential Transaction Structures – Tom Parker, CEO.
A report was given on the current status of affiliation. Supt. Parker and Steve Daniel, Chief Financial Officer, have now met with the potential affiliate partners: Overlake, Virginia Mason and UW, in which an exchange and review of financials took place. Now having had these meetings, we are closer to being able to make a recommendation as to which facility to pursue a Letter of Intent.
A comparison of each facility on the high level deal points was reviewed which includes:
• Rebranding
• Lease and Operate SVH (Economies of Scale)
• Assets and debt remain with District
• Purchase Option (2025)
• District operates to fulfill mission
• Performance Measures
• Service Scope and Expansion
• Allocation of unrestricted cash and excess tax revenue
UW Medicine has declined to affiliate due to a combination of a lease to cover debt service and the need for capital investment to establish surgical services.
As a Plan B, Comm. Speikers recommended we ask UW Medicine if they would reconsider coming back to the table if it was just a lease and we removed the need for the capital investment and that perhaps the District could provide the capital investment for surgical services.
Virginia Mason prefers a Management Services Agreement, fee for services, instead of a lease.
Comm. Speikers suggested we also go back to Virginia Mason to see if they would consider a Performance-based Management Services Agreement.
Overlake Medical Center has not rejected any of the major deal points thus far and has indicated willingness to continue discussions.
Commissioner Pollard's Unhelpful and Disruptive Behavior
Opinion:
Not a meeting goes by that Commissioner Pollard doesn't dominate discussions, and often it's over minor or trivial procedural rules that at the end of the day don't matter.
This video illustrates the point, by excerpting Commissioner Pollard's comments from the June 2018 Hospital Board meeting.
It's not just that he makes his views known, but other Commissioners are taken off task to have to respond to his protests. It sucks the oxygen out of the air, and has prevented the rest of the Board from being as productive as they could be.
I have previously called for Commissioner Pollard to voluntarily resign. Were he to do so now, he might still be able to secure the legacy I'm sure he desires.
Scott Scowcroft, SVH Forum
Affiliation Strategy: We have now provided each potential affiliate partner with copies of the 2017 audited financial statements. Additionally we have provided them with: 2018 April YTD Financials, 2017 Medicare Cost Report, 2017 Market Study, 2016 Community Health Needs Assessment, 2015 Financial Feasibility Study produced by Eide Bailly, and the official statement for our 2015 Revenue bonds.
Steve Daniel and I will meet with each organization over the next few weeks to review our financial information, and discuss the major deal points I presented at the May Work/Study meeting.
Tom Parker 5-10-18 CEO Report: Affiliation Update
Affiliation Strategy: I have had follow up meetings with representatives of Evergreen Health, MultiCare Health System, Overlake Medical Center, Virginia Mason, and UW Medicine. Organizations that we continue to work with are Overlake Medical Center, Virginia Mason, and UW Medicine. Each has expressed interest in reviewing our financial results for 2017 once the cost report and audit are complete. The scope of potential affiliation models will depend on each organization’s review and assessment of our updated financial performance.
I have discussed our affiliation strategy with those individuals who were recommended by the board, and have received helpful advice on process and strategy.
4-12-18 Affiliation Update from CEO Report
• Tom Parker: I have made initial contact via phone or in-person meetings with representatives from Evergreen Health, MultiCare Health System, Overlake Medical Center, Virginia Mason, and UW Medicine. Each party has expressed interest in further discussion with me given that we are approaching affiliation with a more flexible position regarding our goals and related deal provisions. I plan to provide the board with a more detailed report at our April Work/Study session.
The SV Board has rejected affiliation negotiations with Astria, and during this Work Study Session talked about next steps. This was a substantive discussion during which Commissioners and staff addressed these four questions:
Public Notice
Agenda
Questions for Discussion
Guiding Principles for Affiliation
Debt Service Coverage - Lease Option
3-8-12 Astria Letter
Process & Outcomes (Oct. thru March)
Member Substitution Alternative
CEO Update & Recommendations
Dec. SVH Negotiating Team Meeting
SVH Affiliation-Plan B Provisions (Feb.)
Negotiation Team's Recommendation
For video of the entire Board meeting, click here.
Consultant Sarah Cave reported on the status of affiliation negotiations with Astria, and concluded that the "parties [were] unable to arrive at a mutually agreeable structure and terms aligned with the SVH Baord's Guidig Principles and Goals of Affiliation."
Bottom line, the Baord voted to discontinue discussions with Astria, and use the next work session (date tba) to talk about what to do next.
Negotiating Team: ... l recommends to the sVH Board that it discontinue affiliation discussions with Astria , and regroup around a "Plan B."
Astria: Unfortunately, our two organizations were not able to reach an agreement regarding the proposed relationship; therefore, we wish you well in you r continued quest for a partner
SVHD: After discussion, the Board of Commissioners voted to suspend any further negotiations with Astria
President Dariel Norris provides an status update about Affiliation talks with Astria. The two parties are still in early stages, gathering some financial information, and working on how negotiations might be organized.
No letter of intent has been drafted, but it is expected that substantive discussions will begin within the next six weeks.
For the entire Board of Commissions meeting, please click here
• Affiliation Strategy: We continue to work with Astria Health to develop a Letter of Intent to bring to the board. The next step in the process is to develop a structure for the relationship between Astria Health and SVH that meets the objectives of both parties. We are evaluating the pros and cons of the structures proposed by Astria Health in its response to our RFP (acquisition or lease). We anticipate that this will take 30-45 days to accomplish. Once we have a structure drafted we will work on other provisions to be included in the LOI. The intent is to invest thoughtful time upfront on the structure to be more efficient with our time and resources.
On November 2nd , Sarah Cave Updated the Snoqualmie Hospital Board regarding forming a negotiation team, co-drafting a "Letter of Intent" with Astria, and leading to performing due diligence as part of the potential affiliation process.
The Board of Commissioners voted to proceed moving forward, including formation of a Negotiating team to work on a draft Letter of Intent.
Wednesday, November 1st
This was a surprisingly robust and detailed meeting that started with an 87 slide powerpoint pointing out Astrias' similar mission/vision/values to SVH, plus detailing the recent consolidation and rebranding of it's many recent acquisitions.
Whether in a merger or long term lease option, Austria committed to assuming and bearing the risk of operations which in either case means assuming debt service on the Hospital District's outstanding revenue bonds. This was a top priority of the Board of Commissioners.
Additionally, Astria commits to an immediate $10 million investment in the first 2 years, and based on its past performance, anticipates strong physician recruitment, service line expansion and increased market share.
Following the formal presentation, Mr. Gallagher responded to various clarifying questions and comments from the Board of Directors.
VIDEO OF MEETING
POWERPOINT OF MEETING
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On Thursday Oct. 26th, the Board held a public meeting to receive and discuss the consultant's report of Asteria's proposal.
Among other things, the consultants reported Astria has a "strong history of financial performance ... above average margins ... [and] a strong recent history of physician recruitment, service line expansion and increased market share."
The Board decided to postpone consideration of next steps until November 2nd.
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Courageous, Entrepreneurial, Visionary: For the past few years, the main focus of the Snoqualmie Valley Hospital Board has been almost exclusively getting the hospital’s financial house in order. While this objective is critical, it is not the only consideration needed in order to achieve their aspirational vision for making the Snoqualmie Valley the "Healthiest Community in the Nation” bit.ly/svh-vison. For that, the Commissioners must also be courageous, entrepreneurial and visionary, something I’ve urged them to be for over a year now. See public comments.
Astria Health (formerly Regional Health) appears to be a young, nimble and ambitious organization that has a "fire in the belly" for the delivery of healthcare services -- exactly what's needed to navigate today's uncertain and turbulent healthcare sector in transition. Please check out their in-person presentation to the Board and the consultant't's follow-up meeting and "Info-Gathering and Assessment" report (above).
I'm especially encouraged to see that that the Hospital Board is open to considering the Verdant Health model http://bit.ly/svhforum-vm as part of its potential affiliation with Astria
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