The New York State Department of Health Committee on Establishment and Project Review on Thursday voted to approve the active parent model for Upper Allegheny Health System and Kaleida Health.
The Upper Allegheny certificate of need (CON) application will now move for final consideration by the New York State Public Health and Health Planning Council on Feb. 9.
Under terms of the proposal, Kaleida Health will become the parent organization of Upper Allegheny. Meanwhile, Upper Allegheny and its member hospitals, Bradford Regional Medical Center (BRMC) and Olean (N.Y.) General Hospital, will become part of Kaleida Health while remaining separate legal entities with separate boards of directors.
“This is another positive step forward in our plans to fully affiliate,” said Jody Lomeo, president and chief executive officer of Kaleida Health. “Together, our goal is to continue to serve the Southern Tier and northwestern Pennsylvania communities. We want to continue to collaborate and improve care on a local level.”
Timothy J. Finan, president and CEO of Upper Allegheny, Bradford Regional and Olean General echoed those feelings.
“As I have said since day one, this is about strengthening and enhancing care in our community,” Finan said. “There is a real element of trust and confidence with Kaleida Health. Together, we have been able to introduce new and expanded programs and services to the Bradford and Olean communities to help meet local healthcare needs.”
In May of 2016, Upper Allegheny signed a letter of intent to affiliate with Kaleida Health. The letter of intent proposes no immediate changes at either hospital, including staffing. BRMC and Olean General will continue to provide existing inpatient, outpatient, emergency, diagnostic and therapeutic services.
In 2013, Kaleida Health and Olean General jointly established an interventional cardiac catheterization laboratory in Olean. The cardiac program has performed more than 1,000 procedures, saving hundreds of lives in the process.
Also in 2013, Kaleida Health and BRMC jointly established a home care agency, the VNA of Northwestern Pennsylvania in Bradford.
Officials said while both BRMC and Olean General have had several consecutive years of positive operating margins, the outlook for rural hospitals everywhere is a matter of concern. In the past year alone, more rural hospitals have closed across the nation than in the prior 15 years combined. Officials said the affiliation of Upper Allegheny with Kaleida Health will help to assure the stability and enhancement of both BRMC and Olean General in a very challenging environment.
Employees of BRMC and Olean General will remain employees of their respective organizations under the affiliation. Finan will remain president and CEO of Upper Allegheny and its member hospitals. The names Upper Allegheny Health System, Bradford Regional Medical Center and Olean General Hospital will remain, officials said.
Ultimate responsibility for Upper Allegheny and its member hospitals will reside with the Kaleida Health board of directors. Members of the Upper Allegheny, BRMC and Olean General boards of directors will serve on the Kaleida Health board of directors and various committees of the Kaleida Health board. The Upper Allegheny, BRMC and Olean General boards of directors will retain local responsibility for Bradford Regional Medical Center and Olean General Hospital.
Officials said the opportunity to partner with Kaleida Health and its programs at places like the Gates Vascular Institute, Buffalo General Medical Center and Women & Children’s Hospital of Buffalo is to coordinate care so patients in the region will have access to appropriate care locally and be seamlessly transitioned to tertiary network care platforms when needed. Bradford Regional Medical Center and Olean General Hospital will also be have greater coordination of care and enhanced partnerships with the Erie County Medical Center (a partner of Kaleida Health) centers of excellence in behavioral health and transplantation, along with adult level one trauma care.
