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New Closing Date for Sitka’s Integrated Healthcare Delivery System

SITKA – The closing date to finalize the transactions for Sitka’s integrated healthcare delivery system has been postponed to August 1, 2019. The City and Borough of Sitka (CBS) and SouthEast Alaska Regional Health Consortium (SEARHC) have been working tirelessly to meet the original closing date of July 1, which included the CBS hiring consultants in January to investigate Sitka Community Hospital’s (SCH) compliance-related liabilities. However, the delayed completion of the consultant’s report in late May pushed forward the thorough examination of the details, which combined with the Centers for Medicare and Medicaid Services (CMS) delay in meeting with SEARHC, dictated an extension of 30 days to fulfill the state and federal filing and notification requirements to close the deal.

“To meet the necessary deadlines, both organizations agreed that the right thing to do was to push the closing date to August 1,” said CBS Municipal Administrator Keith Brady. “We appreciate SEARHC’s unquestionable commitment and support in effectively addressing the compliance issues and meeting the filing requirements to make way for finalizing Sitka’s integrated delivery system.”

“We continue to be confident about closing the transactions and have put forth serious efforts to find a solution to limit the CBS’s liabilities and need to put money into an escrow account,” said SEARHC President and Chief Executive Officer Charles Clement. “This extra 30 days gives SEARHC and the CBS time to address the consultants’ findings and ensure both organizations meet various CMS notifications and deadlines for changes in ownership.”

SEARHC and CBS approved the Asset Purchase Agreement and Lease Agreement in late April. Since that time, transition efforts have been underway to integrate SEARHC and SCH, and SEARHC has communicated with SCH staff and providers regarding changes in their employment as well as contracted with White’s Inc. for pharmacy services at Sitka’s long-term care facility.

“Although everything is postponed until August 1, including employment offers,” said Clement, “we will continue with our planning efforts, including the work of our transition teams, employee orientations and in-service education.”

Upon meeting the new closing date, SEARHC will assume the operations of SCH, including long-term care and home health services.

The City and Borough of Sitka’s mission is to assure quality public services that provide for the well-being of the citizens. To provide the best service, budget management, and planning for the future of our community. Stay connected to the City and Borough of Sitka! Visit us online at www.cityofsitka.com; like us on Facebook at www.facebook.com/cityandboroughofsitka; follow us on Twitter @cbsitka, and Instagram @cbsitka, Or call Administration, 8:00 a.m. to 5 p.m., Monday through Friday at 907-747-1808.

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