Teche Regional Lease FAQ

September 27, 2018

September 27, 2018

Frequently Asked Questions (FAQ)

What entity currently leases and operates Teche Regional Medical Center (TRMC)?

PHC-Morgan City (PHC) is an affiliate of LifePoint Health, Inc. and currently leases and operates TRMC. LifePoint Health owns and operates hospitals and other healthcare facilities in approximately 70 communities and is dedicated to providing high quality healthcare close to home for the communities it serves.

Are PHC and the HSD terminating the Lease Agreement between the parties?

Yes. Pursuant to the terms of the Proposed Settlement Agreement between PHC and the HSD, which was approved by the Attorney General, PHC and the HSD have agreed to terminate the lease agreement between the parties, dated as of September 1, 2001, effective December 31, 2018. At this time, the operations and ownership of the hospital assets will transfer from PHC to the St. Mary Parish HSD or the owner of the HSD’s choice. The HSD will have the opportunity to select a Louisiana-specific health care service provider as the future lessee and operator of TRMC.

Why is LifePoint Health negotiating terms to leave TRMC?

LifePoint Health regularly evaluates how to most effectively position its hospitals, including TRMC, for the future. In this case, LifePoint identified an opportunity for TRMC to align with a regional partner that can fuel further growth and success and collaboration in the region.

Should employees, nurses, physicians and staff be concerned with the status of their employment with TRMC?

Prior to the transfer of TRMC to either the HSD or an operator selected by the HSD, the HSD and LifePoint do not anticipate any change in the day-to-day operations at TRMC. During this period, all employees, physicians, nurses and staff will be managed under the same terms and conditions as provided currently. It is anticipated that upon transfer of TRMC back to the HSD or a operator selected by the HSD, substantially all of the employees will be offered employment with the HSD or the new operator.

What entity will be responsible for the management and operations of TRMC following termination of the lease with PHC?

The HSD is currently working expeditiously to consider and select a future operator during this period of transition. Three relevant and able partners have been identified, and the HSD is in discussion with all three. Consistent with the terms of the Proposed Settlement Agreement between PHC and the HSD, the HSD will expedite the process to allow for the smooth and successful transition of TRMC to the HSD or a new lessee and operator by December 31, 2018.

Which partners are being considered to lease and operate TRMC?

The HSD has received inquiries from three Louisiana-based partners. The ultimate goal is to select a partner that will bring about growth and opportunity for TRMC and the community it serves.

When will the HSD make a final decision on the new partner?

Currently, the HSD is holding special sessions to evaluate and select a new partner. Such a decision is anticipated to occur October 2018. Simultaneously, the HSD and PHC are finalizing the Settlement Agreement for submission to the Attorney General. Consistent with the terms of the Settlement Agreement, the HSD is working to transition the hospital to a new operator by December 31, 2018.

Will there be a disruption to patients and the community served by TRMC?

There will be no disruption to the quality of care and service patients receive at TRMC during this time of transition. The employees, nurses, physicians, staff and HSD are dedicated to the wellbeing of every patient and will continue to work to provide quality care.

How will updates be communicated during this period of transition?

The HSD is dedicated to providing transparency during this time and is in the process of developing communication avenues and a schedule of updates for employees, nurses, physicians and staff of TRMC, as well as to the patients and community served. Please be on the lookout for a rollout of more information to come including a website for community members to track updates accordingly.

How is the HSD engaging the community to make the best decision?

The HSD has requested applications from the community to create a special ad hoc committee responsible for assisting in the decision-making process in selecting a qualified partner. Applications, including a resume and brief explanation for interest in joining the committee, can be submitted to info@smphsd.com by 10/1/2018 at noon. The Board has also engaged with the St. Mary Parish Counsel to request assistance in this decision-making process. The Parish Counsel’s involvement is pending.