Sometimes bigger is better.

That's the principle Kosciusko Community Hospital board of directors is following with their decision to sell the hospital to Quorum Health Group Inc., based in Brentwood, Tenn.

The proposed sale will be final on Jan. 1, providing no unforeseen snags develop between now and then, said Willis Ault, chairman of the board, announced today to approximately 200 KCH employees.

"Last night, the board of directors unanimously voted to affiliate with Quorum Health Group," Ault said. "KCH will be wholly sold to Quorum. The proceeds will be used to form a foundation promoting health care in Kosciusko County."

The selling price was not disclosed.

He said all KCH employees will be offered the opportunity to retain their positions after the sale, a fact backed strongly by KCH President Wayne Hendrix.

"Your jobs are assured. Part of the negotiations were that all employees will be hired (by Quorum)," Hendrix said.

Additionally, Quorum will offer employees a 401(k) retirement plan, with a matching contribution up to 3 percent of income. The funds in the employees' current pension plan can be rolled over into private Individual Retirement Accounts or into Quorum's plan, he said.

According to Ault, the letter of intent agreed to by the board has only two conditions: local governance, where a 13-member board consisting of seven community representatives, three physicians, and three Quorum representatives will function as the local controlling body, under the auspices of Quorum; and retaining the current employees.

With the move, Ault said, KCH is following a trend seen in Indiana, where more than half of the state's hospitals have joined larger health network organizations.

"Consolidation continues to accelerate in Indiana," Ault said. "Of the 117 hospitals in Indiana, 64 have consolidated."

The driving forces behind those consolidations are demands from managed care organizations, increased cost of information technologies, cutbacks in government health payments, increased competition and greater access to capital by larger health care organizations.

Dr. Alan Martindale, KCH staff president, said the physicians, nurses, technicians and other staff members are supportive of the sale to Quorum, citing the additional services and programs that will be made available as the prime reason.

"The staff is very pleased and excited with the direction the board has taken with this decision," he said.

Martindale pointed to increased patient satisfaction, more support for managed care, continuing education and, most importantly, needed capital for the construction of an oncology treatment center and a women's health center.

"This will be the first time cancer patients won't have to leave Kosciusko County for radiation treatments," Martindale said.

From his estimation, reached after extensive interviews with the staffs of other Quorum hospitals, Martindale said he believes this is a truly wise move on the part of the KCH board.

"The visits made me feel this (Quorum) is an organization that I will be proud to be affiliated with," he said.

Hendrix said improving the quality of health care, reducing costs of information systems and other supplies, and the opportunity for growth in market share through networking are the prime benefits of the consolidation with Quorum.

"If we don't go forward, we go backward," he said. "It's very important to have a partner with the resources to help make that happen."

The board sought a partner that viewed the health care industry as the KCH board and staff did, Hendrix said, and they found that partner in Quorum.

"We have compared our values and their values - our commitment to quality and their commitment to quality - and they are the same," he said.

Hendrix said KCH's long-term care and home health care services will be retained in the KCH foundation set up after the sale. [[In-content Ad]]