As a result of the Facilitated Integration , initiated by the Central East Local Health Integration Network ( Central East LHIN) on March 27, 2013, The Scarborough Hospital (TSH) Board of Directors has recommended proceeding to next steps for a merger with The Rouge Valley Health System (RVHS) follo wing its review of an extensive joint report on benefits and risks.
This recommendation will be forwarded to the Cent ral East LHIN for consideration by its B oard of D irectors at their meeting on November 27 .
“After careful review of and deliberation over the Leading for Patients report received from the joint Integration Leadership Committee, our Board believes that there’s a strong value proposition that will benefit the residents and patients of the Scarborough and west Durham communities,” said Stephen Smith, Chair, TSH Board of Dire ctors, following Tuesday’s public Board meeting.
The motion that the TSH Board of Directors approved states:
WHEREAS Rouge Valley Health System and The Scarborough Hospital entered into a facilitated integration initiated by the Central East Local Health Integration Network (Central East LHIN) on March 27, 2013;
AND WHEREAS an Integration Leadership Committee (“ILC”) was formed to oversee the development and implementation of an Integration Plan; AND WHEREAS the Directors have received the report unanimou sly approved by the ILC entitled “Leading for Patients” (the “Report”);
AND WHEREAS the Report recommends the merger of The Scarborough Hospital and Rouge Valley Health System (the “Integration”).
BE IT RESOLVED THAT:
- The Integration is approved in pri nciple, subject to reimbursement by the Central East LHIN of $1.3 million of Integration Planning costs to – date and confirmation of funding for financial and legal due diligence up to a maximum of $2.5 million, and subject to the satisfaction of the condit ions in section 2 of this resolution;
- Implementation of the Integration will be subject to further approval by the Board and the members of the Corporation consistent with its By – law and to satisfaction of the following conditions:
- completion of financial and legal due diligence satisfactory to the Boards of each hospital;
- preparation of the necessary legal documents required to implement an amalgamation including documents to be submitted to the Central East LHIN and the Ministry of Health and L ong – Term Care;
- Central East LHIN and/or Ministry of Health and Long – Term Care support to address unavoidable one – time costs and ongoing operating costs associated with Integration activities;
- required government approvals including pursuant to section 4 of the Public Hospitals Act; and
- given that the full benefits of a merger can only be achieved if the capital infrastructure issues at the Scarborough and west Durham sites are resolved, grants to commence the feasibility, planning and design for two facilit y projects (one for the Scarborough community and one for the west Durham community) are requested.
- A Joint Steering Committee be established with equal representatives from Rouge Valley Health System and from The Scarborough Hospital for the purposes o f overseeing and implementing a work plan to implement the Integration;
- The Scarborough Hospital members of the Joint Steering Committee shall be appointed by the Board Chair; and
- Board of Directors delegates the authority to the Board Chair and CEO to prepare, at the appropriate time, a letter to the Central East LHIN notifying them of the intention of The Scarborough Hospital and Rouge Valley Health System to amalgamate the corporations in accordance with the Local Health System Integration Act.
“ Th is is all about collaboration, improved access to care for our communities, sustainability of our local health care system and a drive for excellence in quality. These were our guiding principles as we evaluated the value of a possible merger ,” said Robert Biron, President and CEO.
The Leading for Patients joint report was posted on November 8 th on the public website at www.leadingforpatients.ca . A n amalgamated RVHS and TSH hospital corporation would be the seventh largest in the province and would have the largest surgical program in Ontario.
“ Our Board extends their appreciation to the many staff, physicians and community members for their participation and input throughout this process. We are committed to continued stakeholder engagement as we move ahe ad to our next steps,” said Smith. The RVHS Board of Directors, at their public meeting on November 12 th , also decided to proceed with the next steps of the merger with TSH . Read the RVHS news release on their website at www.rougevalley.ca or on the Leading for Patients website at www.leadingforpatients.ca .
The RVHS and TSH B oards’ recommendations will be sent to the Central East LHIN Board of Directors for consideration at their meeting on Wednesday, November 27.
The next phase will encompass a financial and legal due di ligence process, which could take up to six to eight months to complete. TSH remains committed to engaging its stakeholders and community during the next phase of the work. If a merger is ultimately approved by the two hospital Boards, then approval would be required from the Central East LHIN and the Minister of Health and Long – Term Care.
The hospitals have jointly made the following commitments:
- All four hospital campuses will stay open;
- All four of the Emergency Departments will stay open;
- Patient care services currently provided at the Rouge Valley Ajax and Pickering campus will continue to be delivered there regardless of the outcome of the process; and
- All four hospitals will continue to provide high – quality and safe care during any health care system transformation.
The joint Leading for Patients report details the benefits and risks of a possible merger based on the findings from 15 working groups of clinical, administrative and medical staff from both hospital corporations and from an extensive community engagement process.
The hospitals conduc ted extensive stakeholder outreach throughout the summer and fall to inform, educate and listen to stakeholders. These activities, which included a new public website ( www.leadingforpatients.ca ), telephone town halls, online surveys, and community roundtables, reached more than 20,000 community residents during the merger exploration process.
The entire process was launched on March 27, 2013, in a motion by the Central East LHIN Board, which directed the tw o hospitals to work togeth er in a facilitated integration to design and implement services delivery model through:
- Integration of front – line services;
- Back office functions; and
- Leadership and/or governance,
in order to improve client access to high quality services, create a readiness for future health system transformation and make the best use of the public’s investments.