Loading...
01-09-2018 CCM WORKSHOP (Hutchinson Health-HealthPartners Merger)HUTCHINSON CITY COUNCIL SPECIAL WORKSHOP MEETING MINUTES TUESDAY, JANUARY 9, 2018, AT 4:00 PM CITY CENTER — COUNCIL CHAMBERS 1. Call to Order Mayor Forcier called the meeting to order. Members present were Mary Christensen, Steve Cook, Chad Czmowski and John Lofdahl. Others present were Matt Jaunich, City Administrator and Marc Sebora, City Attorney. DISCUSSION/REVIEW ITEMS 2. Review of Hutchinson Health/Health Partners Merger Dr. Steve Mulder, Hutchinson Health CEO, presented before the Council. Mr. Mulder introduced various individuals from Health Partners and Hutchinson Health that were in attendance. Dr. Mulder provided a review of the decision-making process that took place which resulted in Hutchinson Health and HealthPartners merging. Dr. Mulder explained that in August 2015 the Hutchinson Health board of directors reviewed the current state, organizational needs and readiness to consider an enhanced system relationship. Hutchinson Health engaged a consultant/facilitator from MedTrend to lead the project. In November 2015 a partnership task force was created that worked with the Hutchinson Health senior leadership team to clarify current state, gaps for future success, and potential for system partnership to help fill those gaps. In July 2016, the Hutchinson Health board of directors decided to move forward with the process. The board of directors then identified eight objectives important for a system integration. These included cultural fit, population health, improved financial stability, access to and analysis of data, expand the regional influence of Hutchinson Health, preserve local decision making, capital investment and prepare for new payment models. During July through December of 2016 system presentations were given to the Hutchinson Health board, senior leadership team and Leadership Council. On January 6, 2017, the Hutchinson Health board of directors decided to seek formal responses to Request for Proposals from selected systems and the formal responses were received in March 2017. From March through July 2017 in-depth reviews of the RFP responses were conducted as well as site visits of those RFP responses. HealthPartners was determined to be best suited to meet the community's needs on all of the goals/objectives that had been set. In July 2017, the partnership task force recommended to the Hutchinson Health board of directors that Hutchinson Health pursue a system partnership with HealthPartners under their fully -owned sole member model. In September 2017 the Hutchinson Health board of directors formally adopted a resolution affirming the recommendation of the task force. From July to November 2017, Dr. Mulder met with city officials to provide updates and solicit feedback. From September through December 2017 a negotiating committee reached an agreement on a term sheet outlining details of the relationship between Hutchinson Health and HealthPartners in consultation with Hutchinson Health physicians. The term sheet was then accepted by Hutchinson Health and HealthPartners board of directors. The new relationship between Hutchinson Health and HealthPartners is targeted to be implemented in April 2018. Hutchinson Health is a sole member and will remain a distinct corporate 501(c)(3) corporate entity governed by a local board. As a sole member, HealthPartners has significant reserved powers. This is not technically a sale of Hutchinson Health to HealthPartners as Hutchinson Health will retain its own balance sheet — the assets are not transferred, and the employees are still employed by Hutchinson Health. Andrea Walsh, CEO of HealthPartners, presented before the Council. Ms. Walsh provided an overview of HealthPartners which she explained is a not-for-profit, consumer -governed, integrated care and financing system. HealthPartners is comprised of a health plan, medical clinics, dental clinics, seven hospitals and a research and education institute. Ms. Walsh explained the mission, vision and values of HealthPartners and how the culture and strategy of both Hutchinson Health and HealthPartners align. Ms. Walsh spoke about the HealthPartners system of clinics being high-quality and affordable. Ms. Walsh spoke about collaboration through providers and clinicians, employers and community health partnerships. Ms. Walsh reviewed specific programs initiated by HealthPartners related to early childhood, mental health and school -wellness. Dr. Mark Sannes, Park Nicollet, presented before the Council. Dr. Sannes reviewed information and statistics on Park Nicollet and Methodist Hospital. Dr. Sannes spoke about the specialty areas and the residency program at Park Nicollet Methodist Hospital. Dr. Sannes noted that this merger will provide Hutchinson Health a regional presence and will expand its local specialty physician services in Hutchinson in the areas of pulmonology, allergy, obstetrics and mental health. Dr. Mulder expanded on specialty services, infrastructure, population health and worksite wellness. Dr. Mulder also addressed concerns that have been posed with this merger. Council Member Lofdahl asked for elaboration on the objective that was set for a cultural fit. Dr. Mulder explained that as a relational fit between Hutchinson Health and the merging organization. Ms. Walsh explained that HealthPartners strongly believes in keeping health care local, which is obviously important to Hutchinson Health. Council Member Lofdahl also asked for an example of an enhanced service. Dr. Mulder provided an example of enhancements to having specialists on-site and being able to provide a specialized program compared to just basic services. Council Member Christensen asked for more information on the "Make it Okay" mental health campaign. Ms. Walsh provided more information on the program and the various facets of it which is community-based. Council Member Cook spoke about the importance of a strong mental health program and services. Council Member Cook also spoke about the history of the privatization of the hospital and the integration and how local control has always been a top priority. Dr. Mulder also reviewed the ambulance services that are currently provided by Allina but licensed by Hutchinson Health. No changes are anticipated with the ambulance services. The helicopter service is not anticipated to return to Hutchinson. Dr. Mulder also noted that patients with any insurance coverage can seek care at Hutchinson Health, not just those with HealthPartners insurance coverage. General discussion was also held surrounding pay -for - performance. Motion by Christensen, second by Czmowski, to adjourn at 5:10 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator