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Dear ______________,

In follow-up to our recent conversation regarding a potential affiliation between Safety Net Hospital and your system, Safety Net Hospital's board affiliation subcommittee requests a presentation from representatives of your organization on _____________________ to further assess the strategic fit between your system and Safety Net Hospital. The board subcommittee has allotted an hour for the presentation, which should include substantial time for questions and discussion.

The presentation should focus on how an affiliation with your organization will contribute toward Safety Net Hospital's ability to fulfill its mission and achieve its stated goals.a Priority areas of interest for the board subcommittee include how an affiliation will improve Safety Net Hospital's financial performance and enhance the quality of care. Specifically:

  • How will an affiliation with your system benefit Safety Net Hospital financially? Economies of scale? Joint managed care contracting? Improved access to capital? Revenue growth, including joint clinical program development?
  • How will an affiliation with your system improve the quality of care delivered at Safety Net Hospital? Improved performance on clinical quality and patient safety outcomes? Improved patient service quality scores? Increased efficiency? Improved ability to recruit and retain high-quality physicians?

The presentation should also address your organization's experience with its existing affiliates and the positive outcomes that have been achieved as a result of the affiliation.

The current affiliation structure being considered by the board subcommittee is a management agreement that would include shared economic risk and the potential for an investment commitment from its affiliation partner. Please be prepared to comment on your system's ability to support this affiliation and your interest in pursuing this type of arrangement with Safety Net Hospital.

Please contact me at your earliest convenience with your availability to meet with our group on the aforementioned date and times. Thank you for your continued interest in a potential affiliation with Safety Net Hospital.


Footnote

a. Safety Net Hospital's mission is to ensure that every patient who needs high-quality medical care will receive it-with respect, excellence, and compassion. Safety Net Hospital's goals include: improving the quality of care, particularly for the underserved; strengthening Safety Net Hospital's academic programs; maintaining facilities and programs in light of healthcare reform's challenges and opportunities; forming or joining an integrated delivery system to expand access and efficiently coordinate and deliver care; and obtain adequate sources of funding to support Safety Net Hospital's operations.


For more information, see Alan Zuckerman's "Which System is the Best Target for a Close Affiliation," hfm, February 2012.
 

Publication Date: Wednesday, February 01, 2012

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