Phelps Health and Salem Memorial Hospital are taking steps toward a possible affiliation, working through a careful review process. In late August, they announced plans to work together and signed a non-binding letter of intent that explains their shared goals. The current process involves reviews of financial, legal, operational and strategic areas.
The Project Management Office (PMO) at Phelps Health coordinates the project and has established a shared digital storage space for both organizations to input information.
At this stage in the due diligence process, leadership teams from both organizations are working together to collect and share the following information from SMH:
• A mock survey was completed to evaluate regulatory compliance and readiness.
• A facility/life safety assessment was completed to evaluate infrastructure.
• A financial analysis is underway, including examining the revenue cycle.
• Contracts are in review.
• A cybersecurity assessment is planned.
“We are working to understand the services provided at SMH. Our top priority is evaluating these services and retaining staff,” said Phelps Health CEO Jason Shenefield. “We are impressed with the SMH leadership and staff. They have been extremely welcoming and willing to work with us.”
An endeavor of this scale requires clear objectives and teamwork, which are priorities for both organizations. “We are encouraging open dialogue and knowledge-sharing to promote collaboration,” said Brooke Bollman, SMH CEO. “Our leaders and staff are fully engaged.”
Phelps Health and SMH anticipate making an affiliation decision by the end of 2024.
In the interim, both organizations will monitor progress and address any risks if they emerge. “By keeping each other informed about updates and following best practices, Phelps Health and SMH will be well-suited to make an informed decision regarding affiliation,” said Shenefield. “Our leadership teams meet weekly to check in, ask questions and provide updates.”
The ultimate goal is to keep much-needed healthcare services in Dent County. “We are committed to ensuring the healthcare services in this community stay local,” said Bollman.
Phelps Health serves over 200,000 residents in south-central Missouri. Phelps Health is county-owned, non-tax supported and is overseen by a five-member elected board. Phelps Health employs more than 1,900 people with 100-plus providers. Phelps Health, which includes a hospital licensed for 240 patient beds, serves a six-county area, with its main campus and several clinics in Rolla, Missouri. Phelps Health also has clinics in Salem, St. James, Vienna and Waynesville, Missouri. For more information, visit phelpshealth.org.
About Salem Memorial Hospital
Salem Memorial Hospital (SMH) is a 25-bed Critical Access Hospital located in Salem, Missouri, in the heart of the Ozark National Scenic Riverways. SMH offers the following services: a rural health clinic, an emergency room with a Level 4 Stroke and STEMI Center, an 18-bed long-term care facility, an ambulance service, and an Air-Evac Life team on site. SMH employs more than 200 people and proudly serves Dent County and a portion of Shannon, Crawford and Iron counties. For more information, visit smdh.net.
