Familiarize yourself with Swedish Medical Center of Seattle: www.swedish.org
PORT ANGELES — Olympic Medical Center on Wednesday became the first North Olympic Peninsula hospital to approve a much-anticipated affiliation agreement with Seattle’s giant Swedish Medical Center.
Hospital commissioners voted 7-0 to pass the 20-year “umbrella agreement.”
The governing boards of Jefferson Healthcare of Port Townsend and Forks Community Hospital are expected to approve their affiliations next month.
Officially, OMC will become the first member of the Swedish Health Network on Nov. 1.
The idea is to work closely with Swedish — but stay locally owned and independent — to expand medical services on the North Olympic Peninsula while cutting costs, said hospital officials.
Patients will be referred to Swedish for care they can’t get here, and Swedish will send them back to their primary care doctor for follow-up.
Meanwhile, Swedish will help the Peninsula hospitals improve and remain financially viable through expanded clinical services, Epic electronic medical records and a buying group.
Expanded service may include neurology, cardiology, sleep medicine and endocrinology. Separate contracts will be signed as the affiliation takes shape.
“We want to do more locally,” Chief Executive Officer Eric Lewis said at the OMC board meeting Wednesday night.
“I really feel this will be an ad-vantage for our patients, our community, OMC and our employees.”
Lewis has repeatedly stressed that the affiliation is not a merger or acquisition.
Commissioner Arlene Engel said the agreement with Swedish was a “big decision.”
“I am so proud that the board has followed though on this and that we can look forward to offering all kinds of better services for the people who live in our area,” Engel said.
Two weeks ago, Swedish announced a plan to affiliate with Providence Health & Services, one of the other major Western Washington hospital systems.
Lewis, Jefferson Healthcare CEO Mike Glenn and Forks Community Hospital CEO Camille Scott each said that a Swedish-Providence affiliation will not affect their own agreements with Swedish or that it will make Swedish better.
“At some point, we need to be connected to something bigger than we are,” said Commissioner John Beitzel, who described the $10 billion combined Swedish-Providence organization as “not shabby.”
Swedish and Providence are both not-for-profit entities.
Under their proposal, Providence would keep its name and Catholic identity, and Swedish would keep its name and remain a non-religious organization.
OMC will pay $120,000 to Swedish for the affiliation in 2012.
That fee will be re-evaluated at the end of next year, and set for three years at a regular rate.
Teaming up with Swedish in a purchasing medical supplies would more than cover the affiliation fee, OMC Commissioner John Nutter said.
“I think over the last few years it’s become abundantly clear that the status quo isn’t going to last around here,” said Nutter, referring to health care reform and reductions in public insurance reimbursements.
The idea for the affiliation dates back to a June 2010, when officials from OMC, Jefferson Healthcare and Forks Community Hospital met at the end of a retreat at Lake Chelan.
“There were two themes that came out of that particular meeting,” OMC Board Chairman Jim Cammack said.
“We need to pursue this, but we need to make sure that the patient that lives here in Port Angeles who might have to be transferred or treated at a tertiary hospital gets returned here to Port Angeles under their primary care physician so that the continuity of care is kept.”
Jefferson Healthcare commissioners will vote on the affiliation on Nov. 16.
Forks Community Hospital will vote sometime next month.
Dr. John Miles, OMC commissioner, said the U.S. health care scene points to a need for larger groups.
“I think if someone tries to remain totally independent and small they’re going to perish,” Miles said.
“This provides us with a large, prominent, well-respected partner, and I couldn’t be more in favor of it.”
Commissioner Jim Leskinovitch said the affiliation is key for OMC to install the state-of-the-art Epic digital medical records in the next two years.
“I really believe that you’re going to see that this is going to be a trend,” Commissioner Jean Hordyk added.
“It’s neat that we are being the first to do it. It’s kind of scary, but it is also exciting in the same way.”
Cammack said the umbrella agreement will “open the doors” for future agreements with Swedish.
After the vote, Cammack said: “Mark this down in history, folks.”
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.
