Fort Hamilton mulling split from Health Alliance

HAMILTON — The 11 year partnership between Fort Hamilton and the Health Alliance of Greater Cincinnati resulted in a combined investment of $30 million in improvements to the hospital.

But with the health alliance embroiled in turmoil and members questioning its future, Fort Hamilton is mulling a split.

A split is needed, officials said, to secure the future of the hospital.

“We’re definitely trying to find the right (partner). But I’m reminded of that old adage: Never say never. (But) things are fluid in this situation,’’ said Fort Hamilton board Chairman Robert Weigel when asked if a reconciliation is likely.

“Right now we’re on course and are looking for a new partner. I don’t think that will change, but I’ll go back to ‘never say never.’’

The Health Alliance is the region’s largest health care network.

Members currently include, Fort Hamilton, University Hospital, the Drake Center, West Chester Medical Center, the Physicians of Alliance Primary Care and the Jewish Hospital.

But Jewish Hospital is for sale and seeking a new partner, though the health alliance has reportedly made an offer to purchase it.

If Fort Hamilton’s leaves the alliance later this year, they would follow St. Luke and Christ hospitals, which won a lengthy and costly legal battle to withdraw from the alliance two years ago.

And what’s more, two board members abruptly resigned last month and member hospital officials reportedly demanded the ouster of health alliance President Ken Hanover and a restructuring of the network.

Fort Hamilton is the smallest and least profitable hospital in the alliance. And officials fear the hospital’s needs will get lost with the upcoming changes.

“With Jewish Hospital possibly leaving and with the health alliance looking at moving toward a university focus and that’s not a bad thing, but that may not meet our needs,’’ said Lynn Oswald, senior vice president of Fort Hamilton.

In addition to concerns about the future of the health alliance and its struggles, Weigel said officials ultimately want to secure the future of the hospital.

The backing of a strong health system is paramount for Fort Hamilton to continue to meet community needs and adapt to future changes in the health care industry, Weigel said.

“The hospital has been so important to the community over the years. It’s a vital asset,’’ Weigel said. “As health care goes, today it seems the future is with the bigger systems to have access to more resources, reimbursement schedules with insurance companies, supply contracts and better affiliations with physicians."

Fort Hamilton Hospital pumps up to $180 million into the local economy annually, according to a study released last week by the city.

The 2006 report by the University of Cincinnati Economics Center for Education & Research also estimated the hospital — the largest non-governmental employer in Hamilton — employs about 1,250, creates or impacts an additional 875 jobs in the region and generates $1 million of income tax revenue for the city.

Mayor Don Ryan said the hospital is critically important to the city’s success.

“The hospital is the focal point of our community in terms of the economy and health care, whether it’s on an emergency basis, surgery, basic medical care and long term care...It’s critically important that it remains a steady institution in our city."

As the hospital mulls a split from the Health Alliance of Greater Cincinnati and searches for a new partner, area leaders and hospital officials discussed Fort Hamilton’s impact on the city and the importance of securing its future.

Butler County Economic Development Director Mike Juengling said Fort Hamilton boosts the economy in the county and surrounding areas.

He also said it impacts the quality of life for area residents.

“Aside from the economic impact, it gives residents a sense of community. Rather than going to Cincinnati, Oxford or Middletown for care. They can receive care right here.’’

Board Chairman Robert Weigel said Fort Hamilton impact on the community is three-fold:

“It provides health care to the city of Hamilton and the surrounding areas, it’s the city’s biggest private employer, and third and biggest reason: imagine this community without a hospital. It would be a death knell to the city."

Retired Dr. Jim Scott and Fort Hamilton board member, who has been associated with the hospital since 1968, agreed.

He said the community hospital has kept pace with the latest technology and changing health care industry in years past in part because of its partnership with the health alliance.

Scott and others said as the hospital seeks a new partner, it’s important residents know that Fort Hamilton is not in danger of closing.

“We’re not in a survival mode...We’re looking for a better future."

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