Board of Trustees approve letter of intent between MRH and SCL Health
In a unanimous vote Thursday night at Memorial Regional Health’s monthly Board of Trustees meeting, the seven BOTs unanimously approved the letter of intent with SCL Health.
BOT chairman Todd Jourgenson made a motion to approve the letter of intent Thursday night in the second public session. BOT chairman Alman Nicodemus seconded the motion, leading to the unanimous approval from the board.
The signed letter of intent allows for Memorial Regional Health to transfer its operations and sell and/or lease its assets to SCL Health.
According to a joint press release from SCL Health and MRH, the letter of intent outlines several benefits the two parties expect as a result of the proposed transaction, including:
- SCL Health will provide resources to help stabilize operations and continue to fund critical services to ensure residents of Moffat County and surrounding communities have access to high-quality, affordable healthcare close to home.
- Both parties are committed to keeping care local and working together with community providers to coordinate the transition of patients to higher levels of specialized care when necessary.
- The transaction seeks to improve the overall health and wellness of the residents of Moffat County and surrounding areas through the expansion of healthcare services in the region by way of information technology integration, capital investments and leveraging personnel and expertise with respect to various healthcare service lines.
- SCL Health will enhance physician recruitment and retention and sustain and/or expand access to specialty physicians in the service area.
Changes could happen quickly with MRH and SCL Health through an expanded relationship.
SCL Health can acquire the operations and purchase and/or lease the assets of Memorial Regional Health on mutually agreed upon terms. Those assets include the hospital, affiliated clinics and land.
SCL Health and Memorial Regional Health have a history of partnership. SCL Health’s St. Mary’s Medical Center in Grand Junction and Memorial Regional Health announced a care affiliation agreement in 2018, and announced earlier this year that MRH took an ownership position in CareFlight, an air medical transport service operated by St. Mary’s.
“A significant part of our focus in Western Colorado is partnering with and supporting rural hospitals in the region,” said Grant Wicklund, President of SCL Health’s Western Colorado Region. “We want to ensure rural communities continue to have access to high-quality, affordable healthcare close to home. Our goal in expanding our relationship with Memorial Regional Health is to ensure the services they provide to the residents of Craig and surrounding communities are sustainable and successful.”
With the completion of the letter of intent, the two parties now move into a due diligence period, with the goal of reaching a definitive agreement in the coming months. Without the letter of intent, SCL Health and MRH couldn’t trade pertinent information back and forth. Essentially, the non-binding agreement allows both entities to trade information while negotiating terms.
“Our mission has always been and will continue to be providing healthcare services through patient-centered healthcare and service excellence. Given the current economic climate in Moffat County, MRH is seeking a partner to help ensure the future success of MRH as a vital resource that serves the health needs of the community,” said Andy Daniels, CEO. “We recognize and appreciate SCL Health’s mission driven focus, and we share the same strong commitment to meeting the healthcare needs of our community.”