Wed, Jul 18, 2018 at 01:30 PM
Affiliation to facilitate $110 million investment in Marshall County healthcare.
Effective October 1, 2018, the Marshall County Health Care Authority (MCHCA) is entering into a strategic integration agreement with Huntsville Hospital Health System (HHHS) through which MCHCA and HHHS will co-manage Marshall Medical Centers’ operations and facilities. Under this agreement, MCHCA and HHHS are committing to invest over $110 million to fund capital expenditures at Marshall Medical over the next 10 years. This new operating entity will be governed by the same local board and leadership who currently oversee Marshall Medical operations and facilities.
The agreement calls for all services currently offered by Marshall Medical to be maintained and provides new resources that will enable Marshall Medical to expand and grow. In addition to ensuring funding for routine replacement of equipment and facilities, the commitment of capital will enable Marshall to undertake several major projects including the replacement of inpatient beds at Marshall South and upgrade information technology infrastructure.
According to MCHCA Chairman, Mike Alred, “The agreement will be beneficial for both Marshall and HHHS. Marshall Medical will be better able to operate in an increasingly complex healthcare industry that tends to favor larger organizations and HHHS furthers its goal of maintaining community-owned healthcare in North Alabama.”
“The board and the leaders of Marshall Medical have done a great job of meeting the needs of the community,” said Philip W. Bentley, Jr. Chairman of HHHS. “What we hope to bring are economies of scale and support services that are difficult for standalone organizations to afford. We believe that decisions can best be made at the local level and this agreement retains local control,” said Bentley.
According to Gary Gore, CEO, Marshall Medical has been partnering with HHHS since the 1990’s. “We already jointly contract for various services, combine our purchasing and co-own a laundry and medical equipment company among other things. We know the people at HHHS very well, and we are confident this expanded partnership will be good for the community we serve,” said Gore.
David Spillers, CEO of HHHS, agreed stating, “Our goal is to build on what has already been accomplished. There’s no need to make a lot of changes. We want to see Marshall Medical continue to grow and prosper. We’re not looking to redirect patients to Huntsville that can be taken care of in the local community. Both parties will be stronger by working together.”