The University of Kansas Health System, Newman Regional Health, and LMH Health have formed a ‘strategic affiliation.’ It’s not a merger, but they will work together to boost services.
The University of Kansas Health System and two other local hospital systems in Kansas have established a partnership to offer more healthcare services.
Effective today, the University of Kansas Health System, LMH Health, and Newman Regional Hospital have formed a “strategic affiliation.” The University of Kansas Health System and LMH Health will be offering more support for Newman Regional, a 25-bed nonprofit critical access hospital.
Officials say the partnership is not a merger or acquisition, and Newman Regional is remaining independent.
But they say they will be working together more closely to expand healthcare services. The organizations say they will be meeting regularly in the near future to find areas where they can collaborate to improve care.
The affiliation takes effect today. Newman Regional’s board signed off on the affiliation earlier this week.
Cathy Pimple, CEO of Newman Regional Health said in a statement that the partnership will help expand services for the critical access hospital, while still preserving the organization’s independence. Newman Regional is based in Emporia, a city of about 24,000 between Topeka and Wichita.
“This intentional decision reflects our strong commitment to partnership,” Pimple said in a statement.
“From the start, our discussions with the leadership of The University of Kansas Health System and LMH Health have been open and aligned—an approach we deeply value in a future partner,” she said. “This strategic affiliation is grounded in key principles, including Newman Regional Health maintaining independent ownership and governance and remaining dedicated to our charitable mission as we continue to serve our community.”
Bob Page, president and CEO of The University of Kansas Health System, hailed the chance to help the critical access hospital offer more services in the community.
"As a resource for the region and the state's only academic health system, we are pleased to work with NRH to help ensure care close to home,” Page said in a statement. “We look forward to continued collaboration with NRH and LMH Health to create connections to support care needs from routine to the most complex."
Last year, the University of Kansas Health System completed the acquisition of Liberty Hospital, based in a suburb of Kansas City, Missouri.
Russ Johnson, president and CEO of LMH Health, said the organization understands the value of helping independent hospitals maintain viability. LMH Health operates a 174-bed hospital in Lawrence, Kansas about 80 miles away from Newman Regional.
Johnson notes LMH Health’s ongoing partnership with Newman Regional to provide orthopedic care and sports medicine.
“This new agreement will support delivery of care close to home and allow for streamlined coordination when patients require care outside of Emporia,” Russell said in a statement. “Most importantly, this affiliation supports independence, allowing healthcare decisions to be made closest to home, for the benefit of our patients, physicians, and communities we serve.”
For Newman Regional, the agreement on an affiliation marks an important step forward.
“We are optimistic about the opportunities ahead and the positive impact they will have on our patients and communities. The strategic affiliation will allow us to leverage our combined strengths to improve the health and well-being of our community in a meaningful and impactful way,” Pimple said.
Rural hospitals nationwide have been struggling financially for years, and some have sought partnerships with other organizations to stay open. More than 700 rural hospitals, nearly 1 in 3 nationwide, are facing the risk of closure, according to a recent report from the Center for Healthcare Quality & Payment Reform.
Half of America’s rural hospitals are losing money, and many have curbed services, according to an analysis by the Chartis Center for Rural Health.