Abrom Kaplan Memorial Hospital and Lafayette General Health Ready to Explore Expanded Partnership

6/11/2014

Abrom Kaplan Memorial Hospital (AKMH) and Lafayette General Health (LGH) have signed a non-binding letter of intent to explore a long-term lease agreement, whereby LGH will assume expanded management and operations of AKMH. LGH and AKMH have been in a high-level management agreement since 2002, whereby LGH provides executive alignment and strategy, financial analysis and group purchasing power.

LGH will explore a multi-year lease of the hospital, its physical plant and equipment. A formalized long-term relationship between AKMH and LGH will be advantageous for the residents of Kaplan and all of Vermilion Parish.

Both parties plan to bring in consultants to help develop the structure and specifics of a lease/management agreement. More details of the potential partnership will be provided as the parties near completion of a formal contract, which is anticipated near the end of 2014.

Changes in the health care delivery system, budgetary constraints, the Affordable Care Act and other factors in the health care marketplace have made it increasingly difficult for stand-alone community hospitals to survive, much less succeed, in this quickly evolving industry. Although AKMH has remained resilient amidst these changes, Lafayette General Health opens the door to a network of additional resources that were previously only available at larger institutions.

The goal of this proposed relationship would be to continue the prosperity of Abrom Kaplan Memorial Hospital, as well as introduce new opportunities for it to thrive in a very complex healthcare marketplace. Through this expanded relationship, LGH will provide resources, technology and clinical protocol alignment. This will enable AKMH to deliver care more efficiently and cost-effectively, leading to better patient outcomes, increased financial stability and long-term viability.

“Lafayette General Health brings opportunities to Kaplan that are not currently available,” stated AKMH CEO Bryce Quebodeaux. “The goal of this partnership is to ensure Vermilion Parish residents have access to great health care without leaving the Parish. Lafayette General Health can help our hospital continue to prosper.”

The AKMH Board of Commissioners for Vermilion Parish Hospital Service District #1 will remain intact post-transaction, as the Hospital Service District #1 will still own the property and equipment of AKMH. Residents in Hospital Service District #1 currently pay additional taxes to support AKMH. This additional revenue has been integral to the facility in order to remain financially stable and a viable part of the community.

“The tax dollars raised to support Abrom Kaplan Memorial Hospital will remain exclusively for AKMH,” stated LGH President/CEO David L. Callecod, FACHE. “I want Kaplan residents to know their tax revenue will not leave the hospital. It will not be absorbed into our health system. It is our intention to fully integrate AKMH into our health system while making them an even stronger community hospital in Vermilion Parish. We believe this is possible and will work hard to formalize a long-term relationship.”

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