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INTER ISLAND MEDICAL CENTER

DRAFT CONTRACT BETWEEN PEACE HEALTH
and SAN JUAN COUNTY HOSPITAL DISTRICT #1

Stories about Critical Access Hospital project



State Approves Certificate of Need for New PeaceHealth San Juan Island Hospital

posted 01/30/2010
Design planning for the hospital in Friday Harbor can begin. The state Department of Health has approved a Certificate of Need for a new critical access hospital on San Juan Island. The new facility will be owned and operated by PeaceHealth, a regional health system that serves communities in Washington, Oregon and Alaska.

PeaceHealth signed a purchase and sale agreement for a 22-acre parcel of land for the hospital in July 2009.

PeaceHealth and the San Juan County Public Hospital District #1 (Hospital District) in March 2009 approved a long-term agreement to significantly expand on-island healthcare services for Hospital District residents and island visitors.

The 50-year contract calls for PeaceHealth to build a new, fully integrated medical center located in Friday Harbor, including a new, expanded primary care and specialty clinic, expanded diagnostic services center, a 24-hour emergency room, and a 10-bed Critical Access Hospital.

"The state's Certificate of Need process confirmed why PeaceHealth and the San Juan community came together in the first place – to meet the community's need for enhanced local health care services and increased access to care for all island residents and visitors," said Peter Adler, PeaceHealth Senior Vice President for Strategy, Innovation and Development, and CEO of HealthVentures. "When we were first invited into this discussion with the San Juan Island community, our focus was on what could be done to help serve community health care needs and to improve the long-term health and quality of life for islanders. It was a shared vision from the first day forward."

"We're excited to now begin the next phase of this project, during which we'll again seek the guidance and wisdom of the community in the final planning and facility design work. We're appreciative of the State of Washington DOH, and their thorough review and approval of this project," said Jim Barnhart, PeaceHealth's Chief Administrative Officer, Regional Referral Network, and Site Administrator for the San Juan Island hospital.

"This is another big step forward for this project," said Lenore Bayuk, Chairperson of the Hospital District Board of Commissioners. "The community has really stood behind this effort, and their collective voice was well received by the State Department of Health. There is tremendous need and opportunity for increasing access and providing for the long-term health care needs of Hospital District residents and island visitors. We're excited to see the new medical center and hospital start to take shape."

"We're pleased with the CoN outcome and excited to move forward," said Tom Cable, co-chair of the San Juan Community Hospital Committee, a group of island leaders who led the initial exploration of options for a new facility. "This confirms, formally, the need we've seen for so long to improve the health care facilities and services available on our island."

PeaceHealth has already been working collaboratively with the San Juan Island community. A newly renovated mammogram imaging facility, retrofitted to provide the Island's first digital mammography, was installed in August 2009 at the Inter Island Medical Center (IIMC) in Friday Harbor. The mammography facilities are operated by Mount Baker Imaging (MBI), a joint venture of PeaceHealth St. Joseph Hospital and Northwest Radiologists (NWR), both of Bellingham.

The State's Certificate of Need program is a regulatory process that requires certain health care providers to obtain state approval before building certain types of facilities or offering new or expanded services. The CoN process is intended to help ensure that certain facilities and new services proposed by health care providers are needed, appropriately sized, and enjoy the support of their community.

Under the terms of the approved contract signed in March, local philanthropy will contribute $10 million toward capital costs for the new medical center and hospital. PeaceHealth will fund the remaining $20 million, own the property and new facility, and will have full responsibility for the delivery of ongoing patient care, staffing and operations when it opens in the year 2012.

The Hospital District will not be providing any capital to build the new facility. As a result, no additional Hospital District tax levies will be required to fund the capital costs of the project.

The new Integrated Medical Center will increase the number of physicians serving the Hospital District's residents and will nearly double the number of other on-island healthcare professionals serving the Island community. The Critical Access Hospital component of the project required, and has now received, Certificate of Need approval.


San Juan Valley Road site chosen for hospital

posted 07/08/2009
PeaceHealth officials have signed a purchase agreement on a 22-acre site near Friday Harbor Airport where they plan to build a new Integrated Medical Center and Critical Access Hospital, scheduled to open in the summer of 2012. The property is located at 1049 San Juan Valley Road.

.PeaceHealth and the San Juan County Public Hospital District #1 (Hospital District) in March approved a long-term agreement to expand on-island healthcare services for residents and visitors. The 50-year contract calls for PeaceHealth to build a new, fully Integrated Medical Center located in Friday Harbor, including a new, expanded primary care and specialty clinic, expanded diagnostic services center, a 24-hour emergency room, and a 10-bed Critical Access Hospital.

"Both the physical beauty of this property and its location make this the perfect place for PeaceHealth to build our community healthcare facility and for the District to co-locate our new EMS facilities," said Lenore Bayuk, chairperson of the Hospital District Board of Commissioners. "This is another significant step forward in our process to increase access and provide for the long-term healthcare needs of Hospital District residents and Island visitors."

"This property will enable the design of a new facility that will create a healing environment for patients and caregivers, and which will be consistent with the beauty of the San Juan Islands," said Peter Adler, PeaceHealth's Senior Vice President of Strategy, Innovation and Development. "The timing of the land-purchase agreement keeps the new Integrated Medical Center project right on timeline and on budget."

Under the terms of the approved contract signed in March, local philanthropy will contribute $10 million toward capital costs for the new medical center and hospital. PeaceHealth will fund the remaining $20 million, own the property and new facility, and will have full responsibility for the delivery of ongoing patient care, staffing and operations when it opens in the year 2012. The Hospital District will not be providing any capital to build the new facility. As a result, no additional Hospital District tax levies will be required to fund the capital costs of the project.

PeaceHealth recently appointed Jim Barnhart to lead the planning and implementation phase of building and operating the new facility. Barnhart has served for nearly two decades as the CEO and Chief Mission Officer of PeaceHealth's Peace Harbor Hospital in Florence, Oregon. Under Barnhart's leadership, Peace Harbor, a Critical Access Hospital, has consistently achieved excellent clinical and service outcomes for its patients and community.

The new Integrated Medical Center will increase the number of physicians serving the Hospital District's residents and will nearly double the number of other on-island healthcare professionals serving the Island community. The Critical Access Hospital component of the project will require Certificate of Need and licensing approval from the State of Washington.


Contract signed for Critical Access Hospital

posted 03/19/2009
San Juan County Public Hospital District #1 Board of Commissioners today unanimously approved a long-term service contract with PeaceHealth, a Northwest-based not-for-profit healthcare system, to significantly expand healthcare services for San Juan County Hospital District residents and Island visitors. The PeaceHealth Board of Directors approved the contract last week.

The long-term relationship between the San Juan County Public Hospital District #1 (Hospital District) and PeaceHealth will create a new, fully Integrated Medical Center located in Friday Harbor, including a new, expanded primary care and specialty clinic, expanded diagnostic services center, a 24-hour emergency room and a 10-bed Critical Access Hospital.

More than a year ago, the Hospital District, leaders of the current Inter Island Medical Center (IIMC) and the San Juan Community Hospital Committee invited PeaceHealth into discussions to explore a potential partnership to serve the Island’s future healthcare needs. A comprehensive feasibility study was completed in May 2008, and a formal Letter of Intent was signed in July 2008 to allow PeaceHealth and the Hospital District to negotiate and draft a formal contract proposal.

"From the beginning, this project has been shaped by the input and needs of those who live and work in our community," said Lenore Bayuk, chairperson of the Hospital District Board of Commissioners. "We were fortunate to identify a high-quality healthcare partner in PeaceHealth. Their commitment to serving the long-term healthcare needs of this community, from day one, has never wavered."

As part of the 50-year contract, PeaceHealth will build, own and operate the new Integrated Medical Center in Friday Harbor, which will promote healing and well care, as well as provide an expanded range of on-Island healthcare services in a high-quality, intimate environment. Physicians and other healthcare providers will be able to care for Island residents and visitors with new, state-of-the-art medical, diagnostic and imaging services, a 24-hour emergency room and a fully integrated, electronic medical record.

The new medical center and hospital will serve patients all under one roof and is scheduled to open in the summer of 2012. The Hospital District will continue to operate Inter Island Medical Center until the new facility is opened.

Under the terms of the approved relationship and contract, local philanthropy will provide $10 million toward construction costs of the new medical center and hospital. PeaceHealth will fund the remaining $20 million for purchase of the land, facility construction and equipment. PeaceHealth will be the owner of the property and facilities, and will have full responsibility for the delivery of ongoing patient care, staffing and operations.

The Hospital District will subsidize PeaceHealth to provide contracted services without increasing the existing Hospital District tax levy supporting the IIMC, either now or after the levy lift expires in 2015. Currently, Inter Island Medical Center, located in Friday Harbor, offers a family practice and internal medicine clinic, 24/7 emergency services, and some extended diagnostic equipment and services, but patients needing additional diagnostic testing, procedures, and inpatient care must travel off-Island.

As the Island population has more than doubled since the IIMC was built 35 years ago, there is limited space for patient care and clinic operations and no additional space for upgrading, modernizing or adding needed services.

The new Integrated Medical Center will increase the number of physicians serving the District’s residents and will nearly double the number of other healthcare professionals serving the Island community. The Critical Access Hospital component of the new Integrated Medical Center will require Certificate of Need and licensing approval from the State of Washington.

"Everyone’s goal and commitment has been to build upon the legacy of service provided by the Inter Island Medical Center and to serve the San Juan community with expanded access and high-quality services without requiring an increase in Hospital District taxes," said Peter Adler, PeaceHealth’s senior vice president for Strategy, Innovation and Development. "The newly established relationship between PeaceHealth and the Hospital District is grounded in a shared vision for sustainable, accessible and patient-centered services that will meet the long-term needs of the community."

"This partnership is a significant step forward in maintaining and enhancing the quality of life for the residents of the Hospital District and San Juan County," Bayuk said. "We’re excited to have this project moving forward in partnership with PeaceHealth."

San Juan County Public Hospital District #1 (SJCPHD#1) is the tax-supported agency mandated by Washington State law to provide healthcare services and facilities for residents and visitors of the Hospital District. The Hospital District provides clinic-based medical services at the Inter Island Medical Center in Friday Harbor. It also operates San Juan Island EMS which provides emergency medical services, critical care transport, and injury and accident prevention programs. SJCPHD#1 is comprised of San Juan Island, Town of Friday Harbor, Brown Island, Stuart Island, Johns Island, Speiden Island, Pearl Island and Henry Island in San Juan County, Washington. For more information on the IMC project, visit www.sjcommunityhospital.org.

PeaceHealth is a Bellevue, WA-based not-for-profit healthcare system serving multiple rural and urban communities in Washington, Oregon and Alaska. Sponsored by the Sisters of St. Joseph of Peace, PeaceHealth has provided exceptional medicine and compassionate care to Northwest communities for more than a century, including serving the needs of small and remote communities through the operation of three successful Critical Access Hospitals. PeaceHealth annually receives national recognition for innovations in patient-centered care, patient safety and healthcare technology.

Research published in the June 2008 edition of the Joint Commission Journal on Quality and Patient Safety ranked PeaceHealth as one of the top five quality of care healthcare systems in the country, and the leading system in the West. PeaceHealth is frequently named as one of the region’s best employers. For more information, visit www.peacehealth.org.

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