Avera has been leasing the building that holds the local medical facility from the city for eleven years, and that lease expires Dec. 31. The two entities have been in negotiations for years over renewing the lease, but the discussions have recently grown tense. Although the city would prefer to continue its leasing arrangement, it approved the gifting of the facility in order to maintain healthcare access in the community.
As part of the proposal, Avera would have to maintain inpatient and outpatient services in Flandreau. If Avera closes its services in Flandreau, the hospital and equipment would revert back to the city.
If Avera officials decide to approve the proposal, the city will give the facility and all of its equipment to the health organization. However, the $900,000 generated through a half-penny sales tax that currently goes to the hospital must stay with the city, but the $2.58 million the facility made from operation would stay with Avera, according to the report.
Read the Moody County Enterprise report on the Avera Flandreau Medical Center.