BY JANICE CHAVERS

Anderson Herald Bulletin

Content Editor

St. John's Health System's parent company, Trinity Health, announced Tuesday that it has requested proposals from three Indianapolis regional health care systems to assume ownership of the Madison County health system.

St. John's Health System President Jerry Brumitt and Ed Carlson, chief operating officer of Trinity Health, are in Indianapolis today talking to top representatives of Clarian Health (Methodist, Indiana University and Riley), St. Vincent Hospitals in Indianapolis and Community Hospitals Indianapolis.

The request for proposals is a preliminary step, which may or may not result in a new owner for St. John's, Brumitt said.

Trinity asked that the proposals be returned by the end of April.

Founded by the Sisters of the Holy Cross in 1894, St. John's was one of six hospitals managed by Holy Cross Health System until 2000. Holy Cross and Mercy Health Services, another national health care system, merged to form Trinity Health that year.

Although Trinity Health has hospitals in seven states, the closest Indiana hospital is in South Bend, Carlson said. That is too much distance to share services and programs, he said, which wouldn't be the case if an Indianapolis system assumed ownership.

"We have spent the past two years studying our hospitals and their markets. We believe a regional partner more closely located to St. John's can provide them with strong and effective linkages for tertiary referrals and services. The decision to investigate transfer of St. John's ownership to a regional Indianapolis health care system is based primarily on what is best for residents of Madison County," Carlson said.

St. John's board of trustees member and former chairman Carl Erskine sees a possible acquisition as a positive move and said the focus needs to be on all that could be gained from such a change, including better pricing and more sophisticated technology and services.

Brumitt said organizations must be willing to change in order to adapt to future business needs.

"St. John's is financially stable, yet we know the future will bring challenges from further reductions in reimbursement and increases in expenses," Brumitt continued. "An Indianapolis regional health system would provide the additional services and support we need to continue the quality, comprehensive services our community has come to expect. Overall, the partnership would result in more effective, efficient, convenient, and accessible health care for Madison County."

Brumitt said 25 percent of Madison County residents already seek health care services in the Indianapolis market. With rapid growth in southern Madison County, that number could increase.

A closely located regional partner could provide St. John's with relationships, physicians, technology and services, as well as referral opportunities and cost-saving benefits to enhance the current system, Brumitt said.

Trinity and St. John's officials -- including board members, senior management, nursing and clinical officials, sisters, medical staff and other officials -- will then take all the time they need to review the data and decide which proposal best meets the needs of St. John's.

Those involved in the decision making also are customers of St. John's, Erskine stressed. "This is not being made by a hierarchy insensitive to the outcome. We send our families here. We come here."

Trinity has specific criteria it is looking for in the proposals, Carlson said. They include a regional facility that will best meet community health care needs; improve long-term cost effectiveness of health care in the area; provide links to help build future clinical programs and promote continuity of care on complex cases; strengthen St. John's financially for the future; assure availability of required capital for future needs that will enhance health care in the community; and maintain the commitment to Catholic values that have characterized St. John's since its founding.

Trinity and St. John's officials believe there will be much interest in making proposals.

First, St. John's is financially stable, Brumitt said. In addition, he said it has a strong record of patient satisfaction.

"We believe St. John's would be an exceptional addition to an Indianapolis regional health system," Carlson said. "The facility is financially stable and uniquely sophisticated for a community the size of Anderson. It has an exceptional reputation for quality care and community service, has consistently achieved budget projections, and has maintained exceptional patient satisfaction scores," he added.

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