Dan Nikcevich says he takes health care offerings in International Falls personally — as the Essentia Health president and chief medical officer of the East Region and as a member of the community.
Nikcevich and his wife have owned a cabin for years on Rainy Lake, he said. He told The Journal that he wants the most efficient and effective health care system available for the community, of which he is a member.
Nikcevich and Bob Haley, interim CEO of Rainy Lake Medical Center; Charles Helleloid, hospital board chairman, and hospital board vice chair Susan Congrave met with the International Falls City Council Monday to discuss the status of the hospital’s integration with Essentia.
The meeting drew about 70 members of the community in a packed council chambers and helped to dispel rumors about a planned reduction in staff should full integration occur, and the theft of millions of dollars from the hospital.
The meeting was initiated by the Falls City Council, in an effort to provide information about the hospital’s future after Falls councilors reported receiving numerous telephone calls by concerned and frustrated community members.
The concern appears to be prompted by the recent loss of several doctors and other changes in services. Haley and Nikcevich noted that Rainy Lake Medical Center is not alone — many rural communities in the nation are also experiencing difficulties in keeping doctors.
Haley said the hospital is actively recruiting new doctors and hoped to have more news about that effort soon.
Meanwhile, Haley and Nikcevich outlined the history of the hospital’s integration with Duluth-based Essentia Health.
The Rainy Lake Medical Center Hospital board approached Essentia health to integrate its health care system in 2009. A new board was established with half the members appointed by Essentia and half appointed as local (Falls Memorial Hospital) board members. Five strategic goals were established, which were expected to be accomplished by the end of this year.
However, not all of those goals were completed, noted Haley. Among those goals were to integrate Essentia’s electronic medical records model, which is occurring now and should make sharing of records more easy.
In June, Essentia proposed that all Rainy Lake Medical Center assets be transferred to Essentia and renamed Essential Health - International Falls. Advisory board members would be appointed by Essentia and CEO and management resources be provided by Essentia.
That proposal included a $20 million new hospital building.
But a June 26 meeting of the hospital board resulted in the local board members voting against full integration with Essentia now, with the full board recommending discussions about the issues with Nikcevich.
“The only issue is turning over the assets,” said Haley. “Every other decision has been made jointly.”
Those discussions, according to Haley and Nikcevich, have led to the development of a six-month action plan, with a long-term plan to be developed.
And, the two leaders pledged more communication with the community about the process in quarterly updates. Haley said the two officials would be as transparent as they can about integration.
“We’re very much back talking together,” said Haley.
Haley explained that the system is now integrated; financial systems are consolidated, but the hospital has not turned over its assets to Essentia. Concerns about turning over assets revolve around the potential loss of local control, loss of the RLMC facilities and more than $11 million in cash reserves, and the potential loss of jobs as some staff positions could be transferred to Duluth.
Haley made it clear that if full integration were to occur, it would be irreversible.
Congrave said she wants to work to increase trust and confidence between both parties, something she said was lacking in the past, before moving to full integration.
“I expect that (trust) to improve with the short-term goals and to keep evaluating things as we move forward,” she said.
And, she noted, local members would only serve on an advisory board appointed by Essentia under full integration.
If a full integration were to happen, Haley and Nikcevich said they will work to keep local control of the hospital, while gaining the efficiencies and resources available with Essentia.
But Congrave said the discussion about integration shouldn’t be side tracked by the idea of a new hospital.
“Even though it sounds wonderful, we need to look at the big picture,” she said.
Congrave said each member of the current board wants what’s best for health care in the community.
“I don’t see the Falls Memorial Hospital trustees as being a blockade,” she said. “I see them asking questions. I have been a board member for eight years and we haven’t seen all the results we’ve anticipated. We need short-term goals and all board members are on line with that. The short-term goals will help build that foundation (of trust).”
The five-category, six-month action plan includes: create a medical staff development plan including leadership training; establish recruitment priorities including family practice, general surgery, orthopedics; explore expanded use of telemedicine to include emergency, dermatology and neurology; explore addition of alternative medicine services.
At the meeting’s close, Mayor Tim “Chopper” McBride asked the hospital officials to look behind them at the over capacity crowd in attendance.
“If you don’t get this fixed, that’s the issue,” he said.
