New River, CentraCare in Minnesota Agree to Affiliate
New River announced it had selected CentraCare as its affiliation partner in November 2012, pending board approval. CentraCare had been operating the hospital since January under a management agreement while the two organizations hammered out lease and affiliation details. Former New River CEO Marshall Smith announced his resignation in January but agreed to act as a consultant during the affiliation process.
Financial details of the agreement have not been disclosed, but the hospital has made commitments to the local hospital authority to include reopening the following measures in an agreement:
• Reopen an obstetrics and birth center by spring 2014.
• Recruit more primary and specialty physicians.
• Invest in capital improvements to facilities and technology.
• Grow services along the healthcare continuum.
• Manage the hospital's current debt and offset operating losses without new tax levies.
• Place community representatives on a local governing board.
• Make efforts to rehire current employees.
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