Frequently Asked Questions (FAQs)
1. What is happening with Sanford Hospital Jackson?
The hospital is currently under a lease agreement with Sanford Health. Upon the conclusion of a series of long-term planning meetings with Jackson City Council and Community Advisory Board representatives, Sanford Health has submitted a proposal to the city of Jackson to purchase the facility. If this proposal is approved by the Jackson City Council, the hospital would become fully integrated with Sanford Health.
2. Why does Sanford Health wish to purchase the hospital?
Sanford has had a strong relationship with the Jackson hospital since 1997 and this is a progression of that relationship. Sanford believes healthcare is a community asset and as the area continues to grow, Sanford Health expects the need for healthcare services to increase. Sanford Clinic also has a strong physician presence in the Jackson area.
3. Why is the deal needed?
Rural facilities face many challenges including the recruitment and retention of physicians, technology cost and access, increased regulations and reimbursement reductions. Fully integrating with a larger health system such as Sanford Health helps secure the future of healthcare for the Jackson community.
4. What is the difference between a leased and owned relationship?
As of 1997, the current leased relationship means that Sanford has assumed responsibility for the operations of the hospital and has leased the building and land from the city as a tenant. An owned relationship would mean the building and land would now be the property of Sanford Health.
5. How will full integration with Sanford Health improve Sanford Jackson Hospital?
Entering into a fully-integrated relationship with Sanford Health will have several benefits, including increased access to technology, equipment and capital. This partnership would provide an even greater opportunity to add additional services locally and offer even more care close to home – a guiding principle of Sanford Health. An example of this is the plan to expand CT services in order to prevent many patients from either using a mobile unit or traveling distances for CT scans. This example of integration secures the future of healthcare services in the Jackson area.
6. What is the timeline of this proposal?
The approval process is expected to be completed as early as September 2009. This begins a transition process which includes two construction phases. Once those construction phases are completed, likely by December 2011, the facility will become owned by Sanford Health.
7. What will happen during these construction phases?
The first phase of construction will begin in March 2010. It includes:
· Surgery renovation
o Upgrades will be made to the surgical area to accommodate more outpatient procedures
· Upgrades to radiology and imaging
o A permanent CT scanner will be added to the hospital
o A new radiography room will allow Sanford Hospital Jackson to transmit images to any Sanford facility for interpretation
· Creation of a single and patient centered admission area for the clinic and hospital
o This allows for a better patient experience
The second phase of construction will begin March 2011. It includes:
· A new laboratory
o This will provide excellent workspace for lab employees and will simplify the process for a patient’s laboratory tests
· Renovated emergency room
o The renovated ER will increase patients’ privacy
o The upgrades will also improve safety and quality
o A new Trauma room will be added
· Outpatient and inpatient room remodeling
o Updates will give the facility a facelift as well as an increase in patient privacy
8. What will happen to the employees of the hospital?
All employees and management of Sanford Hospital Jackson are currently employed by Sanford Health. If this proposal is approved, there are no planned changes on staffing, wages, benefits, terms of service, vacation hours or any other employee related functions.
9. How would this change affect the Jackson Hospital Board?
The Hospital Board and its members would continue to advise Sanford Health on the local healthcare needs of the Jackson community.
10. How will this change impact the Jackson Healthcare Foundation?
The Jackson Healthcare Foundation will continue to seek funds to support the hospital. In fact, the foundation will contribute $750,000 to support the upcoming construction projects.
11. What is the investment amount?
Sanford Health plans to invest a total of $3.3 million dollars into the Jackson Hospital facilities as a result of this new agreement. In addition to these funds, Sanford will provide new X-ray and CT equipment, plus significant upgrades to the information system architecture. Changes in healthcare have increased the number of outpatient procedures, meaning many hospitals need to renovate their patient areas. This investment will allow many of these changes.
12. Are other proposals from other healthcare organizations being considered?
The Jackson Mayor and City Council proactively engaged a healthcare appraisal company, Michael Bownik Appraisals Inc, to help with this process. The analysis verified that the City of Jackson is receiving fair value for the building.
13. Has Sanford purchased other hospitals before?
Yes, Sanford has purchased five hospitals around the region – Sanford Hospital Canton-Inwood, SD in 2008, Sanford Regional Hospital Worthington, MN in 2008; Sanford Sheldon Medical Center in Sheldon, IA in 2006; Sanford Mid-Dakota Medical Center in Chamberlain, SD in 2005; and Sanford Luverne Medical Center in Luverne, MN in 2000.
14. What has been the impact other facilities have seen as a result of being purchased by Sanford?
Sanford prides itself in investing in local healthcare and the communities it serves. The new $18 million hospital and clinic in Luverne, the $12 million remodel project in Sheldon, and the recent announcement of plans for a $3 million renovation to the surgical center at Sanford Regional Hospital Worthington are all examples of Sanford’s commitment to these communities.
15. Will the hospital continue to work with all physicians in the area?
Absolutely. The hospital will continue to maintain an open medical staff, meaning that physicians affiliated with any healthcare system or organization can apply for admitting privileges at the hospital.
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