HCOE remains confident, but we need a little more help.
HCOE is pressing ahead with plans to complete a corporate member substitution, and take over management of St Mark’s Medical Center, by September 29th. The lawyer for CHC is drafting the transition agreement and HCOE’s counsel is preparing the appropriate filing documents. Over the past several days the group has been working diligently to confirm proposals for the transfer of insurance policies, develop the information technology transition plan, propose leasing arrangements, and draft the staffing plan for ongoing operations as well as the restart of general surgery.
The Fayette County Record had correctly announced that funding sources had been identified following the La Grange Economic Development Corporation agreement on Tuesday of last week to fund up to $500,000 in facility capital renewal. Unfortunately, two local community investors declined to complete the Irrevocable Funding Commitment over the following weekend which left HCOE once again short of required funding. Accordingly, HCOE is continuing to work with several local investors to replace the shortfall. A local bank has come forward with interest in providing a secured bridge loan to address the shortfall. HCOE has authorized BEFCO Engineering to prepare a new survey for the land that can be collateralized, and has opened a file for the necessary title searches associated with loan underwriting.
After the departure of SMMC’s on site human resources representative in early September, HCOE has also been working with G&A Partners, a Professional Employer Organization (POE), to arrange for post transition talent management support, payroll processing, and employee benefits.
Employee benefit plans must be transferred from CHC back to SMMC, and HCOE is currently evaluating insurance and benefit proposals, with a commitment to make benefit transition seamless to the existing employees. 401k and 403b retirement plans will be rolled over to a new plan administrator. And HCOE will conduct a review of employee benefits policies and procedures, including PTO, to determine if enhancement to these policies are warranted to be competitive. A series of benefits related discussions are anticipated among employees following completion of the transition. The goal will be to conclude transfer of all employee benefit programs concurrent with the 2024 annual enrollment period.
HCOE remains confident that we will be able to complete the transaction on the 29th, but we need a little more help. If you are Interested in supporting our effort, or have comments or questions, feel free to contact Sam Wilson, Chief Strategy Officer, Hospital Center of Excellence at 713.408.3317 or Sam@HospitalCOE.com