Boards Affirm Rural Health Clinic and Hospital Merger

March 7, 2012

At the annual meeting of the Lindsborg Community Health Care Foundation, the Board unanimously affirmed the merger of the Lindsborg Rural Health Clinic and the Lindsborg Community Hospital. The motion was then put before the Foundation membership, where the final approval was unanimous. The plan to merge had been previously approved by the Clinic and Hospital Boards of Directors.

Effective May 1, 2012, the LRHC will not be recognized as a separate entity, but instead will become a department of Lindsborg Community Hospital known as the Family Health Care Clinic.

Under consideration and review for quite some time, the merger is in not related to the on-going affiliation discussions with Salina Regional Health Center, and has been under consideration and review for some time. By becoming a "Provider (hospital) Based Clinic", the duplication and expense associated with the filing of forms, reports and audits is eliminated, as is the expense of being insured as two corporations operating under separate tax identification numbers. There will be no jobs lost with the consolidation of the hospital and clinic.

With the merger, Family Health Care Clinic becomes a department of Lindsborg Community Hospital, just as radiology, lab and rehabilitation services are hospital departments. The staff of the former LRHC will become LCH employees; the medical providers' contracts will be transferred to the ownership of Lindsborg Community Hospital.

"The boards of directors and administration have always worked to be good stewards of the wonderful organization with which we lead," commented CEO Larry Van Der Wege. "This is one of those major decisions that will further improve the efficiency and cost effectiveness of our organization. I certainly don't believe the patients we serve will be negatively impacted. Instead, it will formalize what many of our patients already believe-- that we are one organization."

The change will not be official until May 1st. Until then, billing and other communication will be from LRHC. Checks should still be made payable to LRHC.