Commissioners issue RFP for new hospital

In February, the Eagle reported that county commissioners had unanimously voted to change the name of the new healthcare facility in Ekalaka. The new facility is named "Carter County Healthcare Facility."

That vote was made even though the bond issue that county residents voted on in the November 6, 2018 election was on the ballot as "GENERAL OBLIGATION BOND FOR NEW Dahl Memorial HOSPITAL."

On June 1, Carter County commissioners and County Attorney Corbit Harrington called Dan Semmens regarding a Request for Proposals (RFP) for the lease of the new hospital, according to minutes posted on the county's website. Semmens is a public finance partner whose practice focuses on issuer representation. He regularly serves as bond counsel to the State of Montana in connection with various types of financings. He also represents cities, towns, school districts, water and sewer districts and other special districts in an array of public and special purpose financings.

On June 6, the commission placed a call to Semmens and Courtney Ellis of Dorsey & Whitney, LLP. The commissioners, attorney Harrington and Stefanie Harrington from the Carter County Public Health Department reviewed the points to consider when drafting the lease agreement and the RFP for the new hospital building.

On June 14, attorney Harrington presented the commissioners with a letter of information for the hospital building RFP.

On June 24, there was more discussion about the RFP and lease of the new building. Discussion included what equipment Dahl Memorial Healthcare Association owns and what the county owns, as well as current insurances. The estimated cost of the RFP and the lease agreement was reported at approximately $20,000.

Then, on July 6, the RFP and lease engagement letter from Dorsey & Whitney were reviewed and discussed by the commissioners. Commissioner Rod Tauck made the motion to engage Dorsey & Whitney for the RFP and lease agreement for the new hospital building. Commissioner Steve Rosencranz seconded the motion. There was no public comment and the motion carried.

Last week, a notice of facility lease for Carter County Healthcare was posted in the Eagle. The notice states that a current lease agreement between Carter County and Dahl Memorial Healthcare Association is of no further force or effect as of December 31, 2021.

Carter County is advertising that the new Carter County Healthcare Facility is for lease for health care purposes, commencing January 1, 2022.

That means county commissioners could choose a new lessee for the new building instead of Dahl Memorial Healthcare Association. The association was formed in 1957 and has operated the current facility for nearly 65 years.

The full notice, which can be found on page 7 of this issue, also states that applicants may obtain the RFP by contacting Stefanie Harrington (406) 775-6332, Carter County Public Health Department, 214 Park Street, Ekalaka, MT 59324, or by emailing [email protected].

According to Montana Code Annotated, the board of county commissioners may lease county buildings, equipment, furniture, and fixtures for health care facility purposes, with full power of lessor except as limited in this section, upon the terms and conditions that the board may decide upon. The rentals received under the lease or leases must be paid into the general fund of the county. A lease may not be made for a period longer than five years except in a case in which bonds are to be or have been issued, in which case the lease may extend until the maturity date of the bonds sold. The bonds for the new hospital in Ekalaka were not to exceed 17 years.

The full, eleven page RFP for lease, operation, and management of Carter County Healthcare Facility states that the facility generally consists of a 25-bed critical access hospital with skilled nursing beds, a medical clinic, a rehabilitation center, an emergency room department, a pharmacy and lab, and administrative offices.

A portion of the introduction of the RFP follows:

"The objectives and priorities of the Board in issuing this RFP are to: (i) improve the health of the community; (ii) address the gaps in the availability of health services by increasing the quality and scope of such services in Carter County; and (iii) develop a sustainable platform for the delivery of quality care; and (iv) ensure the newly constructed facility is used to its highest and best purpose.

The purpose of the RFP is to provide the Board a structure which allows it to differentiate between potential operators of the Facility and to give each responding organization ("proposer" or "applicant" or, collectively, "proposers" or "applicants") an opportunity to articulate what makes them an attractive option for the Board. In considering proposals, the Board is interested in identifying an operator having the following characteristics:

• A commitment to the continued provision of quality rural healthcare services to the residents of Carter County and the surrounding area.

• A shared strategic vision for the future of hospital and clinical services in Carter County.

• A demonstrated culture of quality and accountability.

• A proven track record of operational success to ensure the ongoing vitality of hospital and clinical services in Carter County, as a stable and professionally rewarding organization for its employees and medical staff.

• Sufficient capital to allow hospital and clinical services in Carter County to maintain high-quality care for its patients and to maintain or expand its physical facilities.

• A system reputation that will add value to the existing brand and reputation within our community and among physicians, consumers, and insurance plans.

• Capabilities, facilities, clinical integration, leadership, and strategies necessary to be well-positioned for success in an era of healthcare reform.

• A commitment to transparency in dealing with the County, stakeholders, and community.

• A demonstrated history of following through on its promises and commitments.

• A demonstrated history of addressing the culture, needs, and nature of rural healthcare."

The deadline for potential lessees to submit proposals is September 3 with selection of a new operator to take place on or about October 12. A transition period between operators, if necessary, would be from the date of selection through December 31, and the effective date of the new operating lease is scheduled for January 1, 2022.