Owensboro Health and Twin Lakes Regional Medical Center have signed an official letter of intent, an agreement that opens the door for the Leitchfield-based hospital to officially join Owensboro Health later this summer.
Once formal terms are reached, Twin Lakes would become the third hospital in the Owensboro Health system, joining Owensboro Health Regional Hospital and Owensboro Health Muhlenberg Community Hospital.
“For both organizations, this is an exciting day that holds tremendous promise for the future of healthcare in our region,” said Greg Strahan, president and CEO of Owensboro Health. “By working together as one system, we can help more people and have a significant impact on the communities we serve, and that is a vision we all share.”
Last August, Twin Lakes announced that it would seek a strategic partnership with another health system that could strengthen its market position, assist with resources and management practices, and enhance the long-term viability of the hospital. Over an eight-month period, Twin Lakes held talks with several potential candidates, ultimately deciding that Owensboro Health was the best fit.
“We approached this process from a position of strength, which has enabled us to select the best possible partner for TLRMC,” CEO Wayne Meriwether said. “This affiliation will provide us with economies of scale and increased access to capital for continued investment in our facilities, technology, and people. Most important, we will be able to move forward with a strong partner who shares our values and our commitment to high quality rural healthcare.”
The letter of intent is the first step toward more a more formalized affiliation agreement, which officials could have in place by late summer.
According to Owensboro Health Board Chair Jeff Carpenter, Twin Lakes has a long, distinguished history of serving Grayson County and its surrounding counties: Breckinridge, Ohio, Butler, Edmonson, Hart and Hardin. Adding Twin Lakes, Carpenter said, gives Owensboro Health an opportunity to extend its footprint even further into western Kentucky while strengthening TLRMC’s ability to offer quality healthcare to the Grayson County area.
“With our progress at OHMCH, the growth of our three healthplexes and this new affiliation, Owensboro Health is enjoying tremendous momentum and is well-positioned as a regional healthcare leader,” Carpenter said. “It is an exciting time to be a part of this system, and we look forward to welcoming Twin Lakes into our family.“
“From the outset of this process we have been guided by a set of objectives that included preserving our culture of community-based care and enhancing the long-term financial viability of our hospital and physician services,” said Twin Lakes Board Chair Trevor Ray, PharmD. “More than any other prospective partner we met with, Owensboro Health demonstrated a commitment to our people, our strategic objectives and our vision for the future.”
- Why is TLRMC joining a larger hospital system?
Last August the TLRMC board of directors decided to explore whether the hospital should remain independent or pursue an affiliation. While TLRMC was and is in a solid financial position, the board was concerned that the costs of providing care were increasing while reimbursements were decreasing, a situation that is not sustainable and will only become more challenging.
The board subsequently decided to pursue an affiliation and began an in-depth thorough process to find the right partner – a process that has included reviewing proposals from several larger health systems, numerous meetings with potential partners and visits to their facilities.
- Why was Owensboro Health chosen?
Throughout this process we have been guided by a set of objectives that included preserving our culture of community-based care and enhancing the long-term financial viability of our hospital and physician services. After careful consideration, the Hospital Board and the District Board have chosen Owensboro Health as our preferred system partner. More than any other prospective partner we met with, Owensboro Health demonstrated a commitment to our people, our strategic objectives and our vision for the future.
We also were impressed by the experience of Muhlenberg Community Hospital in Greenville, a smaller community hospital like ours, which affiliated with Owensboro Health in 2015. Over the past five years, Owensboro Health Muhlenberg Community Hospital has grown in terms of revenue and patient volumes and earlier this year received a five-star rating from the U.S. Centers for Medicare & Medicaid Services (CMS), making it one of only three five-star rated hospitals in Kentucky.
- Is the hospital joining Owensboro Health?
Yes, Twin Lakes Regional Medical Center will be affiliated with and operated by Owensboro Health. This is an affiliation/partnership of our patient services, medical staff and employees. The real property of the Hospital and related facilities will continue to be owned by the Grayson County Hospital District and leased to TLRMC.
- How do patients, employees and the community benefit?
This affiliation/partnership is built on the mutual mission, vision, and values of both entities and will provide greater management, financial and clinical resources. By joining with Owensboro Health, we can enhance healthcare services in the community, maintain our local hospital and provide for its long-term financial viability.
In addition, our doctors and staff will be able to share resources and have greater opportunities for professional growth, while our patients will have access to a broader network of specialists and services just an hour away.
- How will TLRMC employees be affected by the affiliation/partnership?
TLRMC will continue employment of substantially all current employees of the hospital at the same position, pay and seniority. Moreover, we expect that over time this partnership will create more opportunities for employment and career advancement.
- Will there continue to be a local presence on the hospital board?
The local community will continue to have substantial representation on the governing board of the hospital, and Owensboro Health has made a commitment to make substantial capital investments in TLRMC, fund a new community charitable foundation, and establish an integrated electronic medical record system (Epic).
- How does Owensboro Health compare to TLRMC ?
Owensboro Health is a much larger nonprofit health system that serves more than 400,000 people in Western Kentucky and Southern Indiana. The system includes: Owensboro Health Regional Hospital, nationally recognized for its design, architecture and engineering; Owensboro Health Muhlenberg Community Hospital in Greenville; the Owensboro Health Medical Group, comprised of over 200 providers at more than 20 locations; three outpatient Healthplex facilities; a certified medical fitness facility, the Healthpark; a surgical weight loss center and program; and the Mitchell Memorial Cancer Center.
Each year, on average, Owensboro Health has 16,000 inpatient admissions, delivers 2,000 babies and provides the region’s only Level III NICU. Owensboro Health physicians perform nearly 24,000 surgical procedures, including nearly 200 open-heart surgeries. OH physicians and staff have 70,000 Emergency Department visits and more than a million outpatient visits annually.
- What happens next and when will the transaction be completed?
The signing of the non-binding letter of intent by both hospitals now begins a process of due diligence by both health systems. The negotiation of the final agreements will take several more months to complete.
- Why is this being done now, in the midst of the COVID-19 crisis?
The timing is obviously not ideal, but when we started this process last year none of us were anticipating a worldwide pandemic in 2020. Most of our initial work was already completed when COVID-19 hit the U.S. earlier this year, and once the final decision was made we wanted to share it with our employees and the public rather than wait any longer.
This whole process has involved primarily the board, our CEO and consultants and has not drawn any attention or resources away from serving our patients or preparing for COVID-19 in this area. The same will hold true as we enter due diligence and final negotiations.
- Who should I contact if I have other questions?
Questions? Contact the marketing and public relations departments of Owensboro Health or Twin Lakes Regional Medical Center.
Twin Lakes Regional Medical Center and Owensboro Health
