One on One Interview - RMH and Sentara Healthcare
RMH Healthcare of Harrisonburg and Sentara Healthcare, based in Norfolk, announced Thursday that the two organizations have agreed to affiliate.
The boards of directors of both organizations have signed a letter of intent that paves the way to move negotiations forward, according to RMH officials.
An affiliation between the two not-for-profit institutions will provide resources essential to continue offering access to high-quality, affordable health care services to the Harrisonburg- Rockingham County community and surrounding region, explained RMH President and CEO Jim Krauss.
“RMH and Sentara share a common vision of providing high-quality, community-based health care,” says Krauss. “We believe Sentara will provide significant benefits to RMH, including economies of scale, clinical innovations, quality improvement, and mitigation of future financial risk.”
David Bernd, CEO of Sentara Healthcare, adds, “Our two systems share a not-for-profit mission and a commitment to clinical excellence. We should fit together very well, and we look forward to working with RMH’s physicians, hospital staff, volunteers and community.”
According to RMH Board Chair Barbara B. Stoltzfus, the RMH board began seeking affiliation with another system in early 2010, based on a set of established criteria.
“The current economics of health care make it difficult for independent community hospitals like RMH to survive and thrive in the long term,” notes Stoltzfus. “The RMH Board recognized that to ensure the future of high-quality health care for our community, we would need to seek a larger health system with whom to affiliate. We also realized that the time to seek affiliation was when we were fortunate to be in a strong position.”
Stoltzfus noted that, in Virginia, about 95 percent of hospitals are part of health care systems.
She said that out of ten potential candidates the board considered, Sentara Healthcare emerged as the preferred choice and achieved the top tier ranking in almost all the criteria.
She explained that health systems and hospitals in the Valley and the region were also considered.
“We chose to affiliate with Sentara because it is, like RMH, a not-for-profit organization committed to delivering high-quality, community-based healthcare,” continues Stoltzfus. “In addition, a large, integrated system like Sentara offers services, technology and financial strength that we simply cannot achieve as an independent hospital in such a turbulent healthcare environment.”
Krauss adds, “Sentara respects the history and close community bond of RMH. This affiliation will ensure that quality healthcare will be a part of the Harrisonburg/Rockingham community for generations to come, as our original benefactor, William Leake, envisioned a century ago.”
Officials noted that it will take a six months or more to undergo a due diligence phase and complete regulatory review. The affiliation will most likely be in the first months of 2011.
More details will be released as work progresses, adds Stoltzfus. She emphasized that RMH will remain a community-based, community-focused hospital, with community members continuing to sit on the RMH board.
“Harrisonburg and Rockingham County are not losing RMH; we are gaining the resources and award-winning programs of Sentara Healthcare that will ensure high quality health care for our region for generations to come,” says Stoltzfus.
