Robinson Memorial Hospital in Ravenna won't automatically renew its agreement with Summa Health System, but will be "seriously considering" a new agreement with the hospital system as it moves into not-for profit-status, said Stephen Colecchi, president and CEO of Robinson Memorial.
Robinson Memorial has been an "affiliated member" of the Summa system since 2007. The agreement expires at the end of 2013, but the agreement was set to automatically renew.
However, when Robinson Memorial completes its process of becoming a nonprofit hospital, the agreement will require "significant changes." And since Robinson is expected to obtain that status before the end of 2013, Colecchi said, both parties made a "mutual decision" not to let the agreement automatically renew.
For now, Colecchi said, "everything remains status quo" as the contract doesn't expire until the end of the year. Over the next few months, Robinson Memorial will explore a more appropriate model for affiliation going forward.
"We're starting to take a closer look at what a new affiliation with Summa would look like," he said. "We will start to look at all partnership models."
"In addition, as a not-for-profit, Robinson can avail itself of new partnership business models, models that Robinson could not previously consider because of the legal restrictions imposed on it as a county owned hospital," Colecchi stated in a memo to board members and staff. "Robinson and Summa believe it to be in the best interests of both parties that we jointly explore in more detail those various partnership business models."
Robinson applied for tax exempt status with the Internal Revenue Service on Jan. 28. A decision on that application is expected in the third quarter of the year.
"Once that status is granted, we will be able to officially operate Robinson Memorial Hospital as not for profit," he said.
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