Siloam Board Of Directors OKs Hospital Negotiations
Agreements Should Take 90 Days, Administrator Says
Last updated Tuesday, August 19, 2008 9:33 PM CDT in News
By Bob Caudle
The Morning News
bcaudle@nwaonline.net
SILOAM SPRINGS - City directors Tuesday unanimously authorized City Administrator David Cameron to negotiate for the transfer of Siloam Springs Memorial Hospital to Community Health Systems.
Under the agreement, Community Health Systems will purchase the assets of the Siloam Springs hospital, lease the existing hospital real estate and building, and will operate the hospital.
In a later phase, Community Health Systems will construct and lease a new hospital on land recently purchased by the city.
The Board of Directors vote Tuesday came after the hospital's Board of Governors voted to recommend the agreement in a Monday meeting.
Cameron said he expects the negotiations to last about 90 days.
"We said we'd purchase the land and conduct a feasibility study, but continue to look for another partner, too," Cameron said. "They did make a substantial capital investment up front. We're ready to proceed farther."
The hospital Board of Governors and the city Board of Directors at a joint session Monday night listened to a presentation by representatives of Community Health Systems.
"There was much discussion about the project," said Siloam Springs Mayor M.L. "Moose" Van Poucke. "It was a good discussion."
Officials with Community Health Systems took members of the hospital board and hospital staff on a recent trip to a hospital in Shelbyville, Tenn., for comparison. The Shelbyville hospital has been open about one month, said Dr. Dale Clemens, the chief of staff at the Siloam Springs hospital.
Community Health Systems is proposing building the same type of hospital for Siloam Springs - about 100,000 to 150,000 square feet at a projected cost of $35 million.
"We asked them difficult questions and got the appropriate answers," Clemens said. "We were happy with the reports from the hospital staff and the people in the community. The CEO said they have majority control locally with suggestions from CHS."
Cindy Kugel, the chief nursing officer at the Siloam Springs hospital, agreed with Clemens.
"It was a very good trip," Kugel said. "I think we all have a very good comfort level with CHS. Nurses talk and they lay it on the line."
Community Health Services is the largest provider of nonurban and midsize acute-care hospital services in the United States, according to officials with the group.
Community Health Services also operates the hospitals in Springdale and Bentonville.
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