The Southeast Alaska Regional Health Consortium will make its pitch to the Sitka Assembly tonight to buy the city-owned hospital.
See SEARHC’s presentation here: SEARHC Proposal
See SEARHC’s powerpoint here: SEARHC Powerpoint
SEARHC has offered to purchase Sitka Community Hospital upfront for $6.5 million dollars. They then plan to lease the real estate for $600,000 every year, for five years.
SEARHC estimates the city would also retain $3.6 million in the hospital’s cash balance, $6.4 million in other assets, and $750,000 in city support. All told, that nets $17 million in financial benefit to the city in the first year. And the city would get to hold on to tobacco tax revenue, which generates about $600,000 a year, and put it towards other things.
That’s the money side. On the medical side, SEARHC is envisioning an entirely new facility. The proposed campus on Japonski Island would include a critical access hospital with 25 inpatient beds and four operating rooms. There would be a skilled nursing facility with 20 beds and a medical office building for primary care, with 50 treatment rooms, lab and radiology services.
All told, the campus would cost $115 million and would be built three to five years after the sale. All Sitka Community Hospital employees would be offered “like” jobs. SEARCH would create a Sitka Advisory Council. They also plan to open one seat for a Sitkan on their accreditation board.
ECG Management Consultants recommended the two hospitals merge at a meeting in March. The Sitka Community Hospital board has not taken a position on the issue, and neither has the Sitka Assembly. They’re in fact finding mode at the moment, but may take action at a future meeting.
KCAW’s follow-up reporting, as well as a full recording of that meeting, can be found here.