By Mark Boshnack
Staff Writer
The affiliation of A.O. Fox Memorial Hospital in Oneonta with Bassett Healthcare in Cooperstown is expected to be completed by Jan. 1, 2010, officials at both organizations said during a Friday media conference at FoxCare Center in Oneonta.
Following the unanimous approval by the boards of Bassett and Fox on Friday, the decision only needs the approval of regulators and completion of management and medical services agreements.
Under the agreement, Fox will become an affiliated hospital in the Bassett Healthcare Network, Bassett President and Chief Executive Officer Dr. William Streck said.
"This is a model that has been used effectively at other hospitals," including O'Connor in Delhi and Cobleskill Regional, said Streck.
"Any time health care is delivered in a more coordinated fashion, access, quality and efficiency improve, and there is a reduction in the fragmentation of patient care," Streck said.
As part of the agreement, Bassett will provide management and medical services to Fox. Fox CEO John Remillard, who will become an employee of Bassett, said, "This affiliation will allow us to deliver care in a more cost-effective way, and draw on the strengths and expertise of each organization to improve health care in the region."
Fox Hospital will retain its independent status, and both organizations will retain their boards of directors. The change will not affect the status of employees at either organization, the two leaders said. This includes Fox physicians who will remain as they are, either employed by Fox or independent practitioners who have privileges at Fox, Remillard said. Current hospital staff will remain Fox employees.
The organizations' leaders said the changes should be seamless, with no layoffs expected. One of the only visible signs of the change will be that after it becomes official, Fox spokeswoman Alisha Barbera said the notices of affiliation with Albany Medical Center will be changed to Bassett Healthcare.
Remillard said that this was not the direction envisioned when talks began about a year ago to share services in areas that included orthopedic, cardiac and cancer care. But that started to change late last winter when the board realized that with Bassett physicians working on staff, it had to "step back" and assess the situation, he said.
"We've had a history of competition," Remillard said, but it was clear "that was no longer the best model."
"These are challenging times for hospitals across the country," he said.
The recently announced $3.9 million Health Care Efficiency and Affordability Law for New Yorkers grant was also a big catalyst in reaching the agreement, according to Remillard. The release of those state funds are dependent upon the successful completion of the process.
It includes $2 million to help Fox restructure its debt and $400,000 for it to undertake a comprehensive master planning process. An additional $500,000 is available to help Fox and Bassett share medical records, along with other funds to help the affiliation.
Streck said that the collaboration on medical records and physician recruitment is an example of just two of the efficiencies to be gained from the affiliation. By being part of Bassett's corporate structure, Fox will also have better purchasing power, he said.
Bassett board member Douglas Willies said that the benefits have been discussed for many years, but the financial realities confronting all health-care providers was one of the biggest factors in getting an agreement now.
