By SHANNON HAUGLAND
Sentinel Staff Writer
Assembly members agreed at a special meeting Thursday night that March 15 will be the date for public release of the final agreement under which the city will sell the health care business of Sitka Community Hospital to SEARHC, which would then provide health care services for the entire community.
The 6-0 vote to make the agreement public came after about two hours of a meeting behind closed doors.
“I wouldn’t mind it being public tomorrow,” Assembly member Richard Wein said afterward.
“Noted,” Mayor Gary Paxton responded.
Steven Eisenbeisz said there were a few “blanks” in the document that need to be filled in yet, and he wanted the public to have the complete document.
The vote to go into executive session to discuss Phase III of the negotiations between the city and SEARHC passed on a 4-2 vote, with Wein and Valorie Nelson voting against. Paxton, Eisenbeisz, Kevin Mosher and Aaron Bean were in favor.
Wein said he felt the issue needs to be discussed in a public forum.
Nelson agreed, saying, “I have concerns about the need to go into executive session. I don’t see a lot of changes.”
One member of the public expressed her concerns about continuity of care of patients at SEARHC.
The draft Asset Purchase Agreement has been released to the public, and includes the SEARHC offer to purchase the Sitka hospital business for $9 million to $16 million, depending on which payment option the city chooses. It also calls for SEARHC to provide a transition plan and to retain Sitka Community employees for at least a year. But some of what consultants called “critical issues” haven’t been released, including a “governance model” providing community members with a say in the hospital operation, and the guarantees assuring that SEARHC will be accountable on terms of the merger after the affiliation is complete.
Sarah Cave, the city’s outside consultant, told the Assembly at its regular meeting Tuesday that there were “a number of other issues as well.”
Cave and fellow consultant Steve Huebner have made a recommendation on the options for purchasing the business that they believe would bring the biggest benefit to the city. Cave also told the Assembly Tuesday that she was concerned about the governor’s proposal for severe budget cutbacks, including to Medicaid, and advised the Assembly to reach an agreement as soon as possible.
The discussions on forming a single health care entity in Sitka have been going on for well over a year. SEARHC was the successful responder to the Request for Proposals on managing, purchasing or affiliating with Sitka Community Hospital.
SEARHC, a regionwide Alaska Native-run health service consortium, said it plans to build a new hospital on its Japonski Island campus to accommodate Sitka patients.
