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Published on June 05, 2013

Ashland City Council Approves Definitive Agreement for Asante/ACH

Ashland Community Hospital (ACH) came one step closer to joining Asante when the Ashland City Council unanimously approved the Definitive Agreement at its regular monthly meeting June 4. The document had previously been approved by the ACH Board, the ACH Foundation Board, and the Asante Board of Trustees.

“Everyone involved has kept the best interests of the people of Ashland at the forefront of these negotiations,” said Roy Vinyard, president and CEO of Asante. “We are very pleased that the city council has approved what we believe is a win-win agreement. Now we can roll up our sleeves and continue to bring our organizations together.”

The transition of ACH to the Asante family is expected to be complete in August. During the next two months, Asante will work with ACH to prepare for a successful transition. 

Key elements of the Definitive Agreement include:

  • The City of Ashland will transfer its ownership interest in ACH land, buildings and fixed equipment to Asante.
  • Asante will operate ACH as a general hospital for an initial period of three years, while investing $10 million in capital improvements and funds for working capital.  If all contractual obligations are met after three years, Asante agrees to operate ACH as a general hospital for an additional 12 years, or pay a $4 million penalty to the City of Ashland.
  • Asante will commit every effort to offer — but not guarantee — employment to current ACH employees, according to the agreement.
  • Asante will credit ACH employees with their current years of service at ACH.
  • ACH employees who seek other positions within Asante will be considered internal applicants. 
  • The facility will be renamed Asante Ashland Community Hospital.
  • Asante will acquire ACH’s assets and most of its liabilities.  The City of Ashland will assume any ACH liability related to the Public Employees Retirement System (PERS).
  • The ACH Foundation will continue with its current legal structure.

“This is an exciting time for Asante and for Ashland Community Hospital, and we look forward to our two organizations joining as one,” Vinyard said. “Together, we will all move one step closer toward achieving our vision of being recognized for medical excellence, outstanding customer service, and as a great place to work.”

ACH officially entered into a management agreement with Asante on March 11. Since then, Asante has fully managed the operations of ACH with Marvin Haas, chief administrative and finance officer for Asante for the past 13 years, working as interim CEO.

Media Contact

Grant Walker
Grant.Walker@asante.org
Phone: 541-789-3509
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Twitter @RogueReporter

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