Blue Hill Hospital/Eastern Maine
Affiliation Proposal Advances

By Ellen Booraem, Special to The Ellsworth American

BLUE HILL — Last week’s close vote to change the governance structure of Eastern Maine Healthcare Systems has moved Blue Hill Memorial Hospital one step closer to an affiliation with the Bangor-based regional health care system.

If all goes as planned, the BHMH board of directors will be asked to vote on a draft affiliation agreement at its Dec. 15 meeting.

The draft has been amended by a BHMH committee and is now on the desk of Norman Ledwin, president of Eastern Maine Healthcare Systems. Ledwin has told Tim Garrity, the Blue Hill hospital’s chief executive officer, that the changes he envisions are “not significant.”

Corporators of Eastern Maine Healthcare, the parent of Eastern Maine Medical Center, Acadia Hospital and several affiliates, voted Wednesday, Nov. 17, to disband their corporation. The vote was 139-120.

The elimination of Eastern Maine Heathcare places its subsidiaries directly under the governance of Eastern Maine Healthcare Systems, on the same footing with the other hospitals in the regional network. Those hospitals include The Aroostook Medical Center in Presque Isle and Sebasticook Valley Hospital in Pittsfield.

Instead of the 400 corporators of Eastern Maine Health, who came from the Bangor area, EMHS will create a 200-member corporation that approves the EMHS board of directors. Members of the new corporation will represent the nine counties served by the health-care system, each county assigned a specific number of corporators based on population.

The EMHS reorganization had to take place before Blue Hill Memorial Hospital would take the affiliation discussion to the next level, Garrity said. “It was very important to us that the Eastern Maine Healthcare Systems governing structure be representative of the nine counties served by the system, and not centered in Bangor.”

He said as much at last week’s meeting in Bangor, which he attended along with Dr. Gardner Smith, a BHMH board member.

His hospital, Garrity said in a speech to the Eastern Maine corporators, “is nearly ready to vote for integration with EMHS. The major thing holding us back is the completion of the proposed reorganization. We want to see a positive vote so that we know EMHS governance will be effective and representative of the entire region, rather than focused in Bangor.”

A strategic planning effort at BHMH recommended looking into an affiliation with Eastern Maine Healthcare Systems. Blue Hill has been clinically affiliated with Eastern Maine Medical Center for the past decade in an effort to streamline the transfer of patients from one hospital to the other.

In 1997, Blue Hill entered a “strategic affiliation” with the hospitals in Eastern Maine Healthcare Systems, sharing what Garrity describes as “knowledge resources.” The affiliation enable the hospitals to collaborate on medical staff policies, he said, such as “the best way to treat a patient who’s had a heart attack or a stroke or congestive heart failure.”

If its board votes “yes” on Dec. 15, Blue Hill would be “economically integrated” with the Eastern Maine system. According to Garrity, such an integration brings economies of scale for all members, most immediately in joint purchasing, employee benefits and a unified information system.

For patients, advantages are expected to include a single set of electronic medical records that would be available both in Blue Hill and Bangor. This would make it easier for doctors to avoid prescribing conflicting medications.

While member hospitals retain their own boards and bylaws, and make up their own budgets, those would have to be approved by the EMHS board. The system has to be fiscally integrated in order to be viewed as a unit by the IRS.

Garrity would report to the BHMH board and to Ledwin as EMHS president. Both would evaluate his performance.

Recently, he said, managers from hospitals already affiliated with EMHS visited the Blue Hill hospital to meet with employees. “They said their board picks their CEO. Technically that’s not so, but to these managers that was not apparent,” he said.

Garrity and others have been adamant that Blue Hill will retain ownership and control of its endowment and real estate. If Blue Hill wants to use endowment funds or fundraising proceeds buy or sell a building or a piece of equipment, Garrity said, Eastern Maine will have no say over that decision.

“EMHS has to approve the budget,” he said. “If something is consistent with the strategic plan and if we have a means of funding it, it’s up to us.”

If Blue Hill approves the document it will go to the EMHS board for approval. It then must be approved by government agencies, including the Maine Attorney General, the IRS and Medicare and Medicaid.

It could be six months before the affiliation took effect, Garrity said.

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