By Sentinel Staff
The closing date to finalize the merger between Sitka Community Hospital and the SouthEast Alaska Regional Health Consortium has been postponed to Aug. 1, the city and SEARHC announced jointly today.
“The City and Borough of Sitka and SouthEast Alaska Regional Health Consortium have been working tirelessly to meet the original closing date of July 1, which included the CBS hiring consultants in January to investigate Sitka Community Hospital’s compliance-related liabilities,” the announcement said. “However, the delayed completion of the consultant’s report in late May pushed forward the thorough examination of the details, which – combined with the Centers for Medicare and Medicaid Services delay in meeting with SEARHC – dictated an extension of 30 days to fulfill the state and federal filing and notification requirements to close the deal.”
City Administrator Keith Brady said: “To meet the necessary deadlines, both organizations agreed that the right thing to do was to push the closing date to Aug. 1. We appreciate SEARHC’s unquestionable commitment and support in effectively addressing the compliance issues and meeting the filing requirements to make way for finalizing Sitka’s integrated delivery system.”
“We continue to be confident about closing the transactions and have put forth serious efforts to find a solution to limit the CBS’s liabilities and need to put money into an escrow account,” SEARHC President and Chief Executive Officer Charles Clement said in the news release. “This extra 30 days gives SEARHC and the CBS time to address the consultants’ findings and ensure both organizations meet various CMS notifications and deadlines for changes in ownership.”
SEARHC and the city approved the Asset Purchase Agreement and Lease Agreement in late April. Transition efforts have been under way since then to integrate the two organizations, and SEARHC has communicated with SCH staff and providers regarding changes in their employment. SEARHC also has contracted with White’s Inc. for pharmacy services at Sitka hospital’s long-term care facility, the release said.
Clement said: “Although everything is postponed until Aug. 1, including employment offers, we will continue with our planning efforts, including the work of our transition teams, employee orientations and in-service education.”
On the new closing date, SEARHC will assume the operations of Sitka Community Hospital, including long-term care and home health services, the announcement said.
