Hospital sale could be completed by Jan. 1
By Rae KrugerMARSHALL - Avera Marshall Regional Medical Center could have a new owner within a year. Based on a timeline considered by the Avera Marshall hospital board, the sale could be completed by Jan. 1 with the purchase effective July 1.
The negotiations will start soon on the sale of the city-owned hospital and nursing home to Avera Health of Sioux Falls, S.D.
The hospital board and city council agreed in June to pursue a sale of the hospital and nursing home to Avera Health. The city has a management agreement with Avera Health and recently started its fourth year of that partnership.
A negotiations committee has been appointed to do the work.
Hospital board members Art Olson, Bernadette Kruk and Roger Madison were appointed to the negotiations committee. City councilman and liaison to the hospital board Mike Reynolds was also appointed.
Avera Marshall President and Chief Executive Officer Mary Maertens, its chief financial officer Sharon Williams and human resources director Bonnie Barnhardt were also appointed to the committee.
The city has a management partnership with Avera Health of Sioux Falls, S.D. The city and hospital board will use an outside consultant to determine the value of the facilities.
A timeline presented at Monday's meeting said firms will be considered at the August hospital board meeting.
"We anticipate it will be a couple of firms or more will present proposals for for valuations," Maertens said before Monday's meeting.
The bulk of negotiations will happen from September through November, Maertens said.
Negotiation points should be identified by Avera Marshall and Avera Health, Maertens said.
The hospital board also agreed to an outline for communication strategies, said Deann Holland, community relations director for Avera Marshall.
One way to communicate with the Marshall community about the process is meeting with various community organizations, Maertens said before Monday's meeting.
Another key is communicating with employees, Maertens said.
Avera Marshall has about 500 employees.
Maertens has been met with groups of employees four times in the past few weeks.
One main concern is how employee retirement benefits will be impacted. Employees are public employees and have public retirement accounts or PERAs.
Maertens said Avera Marshall employees should qualify for an enhanced benefits package which is similar to PERA. It would allow employees to preserve length of service under rule 90 requirements for retirement, Maertens said.
Avera Health also offers retirement and insurance.
The package offered to Avera Marshall employees will need to be similar to what they have now, Maertens said.
