mendocino coast district hospital request for proposal (rfp)
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Mendocino Coast District HospitalApril 11, 2019
Mendocino Coast District HospitalRequest for Proposal (RFP)
Menciocino Coast District Hospital (“MCDH”) is a 25 bed Critical Access Hospitallocated in Fort Bragg, California and is accredited by the Joint Commission. Its
services include a 24-hour emergency department, intensive care unit, obstetrics,
inpatient acute care medical/surgical unit, swing bed unit, pharmacy, surgery, imaging,
laboratory, home health, ambulance, hematology/oncology, respiratory, physical and
occupational/speech therapies and a rural health clinic. Since 1971 MCDH has providedhealth care services to the residents of Mendocino County who reside along a 70-mile
stretch of rural coastal communities. MCDH is a vital resource for the residents and
visitors along the somewhat isolated coast of Mendocino County.
It serves a District of approximately 23,500 individuals. The District is divided into a
primary service area and a secondary service area. The primary service area consists of
seven zip codes, encompassing the communities of Westport, Fort Bragg, Caspar,
Mendocino, Little River, Albion, Elk and Comptche. The secondary service area consists
of three zip codes in the southern coastal communities of Gualala, Manchester and Point
Arena.
MCDH is unionized and UFCW 8 is the recognized representative of all the employees
paid on an hourly basis including regular full-time, regular part-time and per diem
employees (excluding supervisor, management and confidential employees).
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Mendocino Coast District HospitalApril 11, 2019
MCDH is a 501 (c)(3) non-profit entity and is classified as a Special District in the State
of California. For almost 50 years, MCDH has been dedicated to a mission of making
a positive difference in the health of our rural community. MCDH’s vision is to:
• Play a vital role in the overall health and well-being of the community and will be
the key element in the healthcare system serving the needs of our community.
MCDH will provide leadership to enhance the efficiency, coordination, quality
and range of services provided within our rural healthcare system.
• Continue to be the healthcare provider and employer of choice within our
community by implementing technology updates and achieving superior clinical
skills.
• Have a positive impact on health by encouraging personal and community
responsibility for health and wellness. Our efforts will play a decisive role in
people choosing to stay in our community or to locate here.
After careful thought and deliberation, the Board of Directors of MCDH (the “Board”) has
determined that the timing is appropriate to seek options regarding a potential lease or
sale. The Board is committed to finding the right lease partner or buyer to ensure that
exceptional local healthcare continues continue to be delivered on the Mendocino
Coast and the surrounding area.
The purpose of this Request for Proposal (RFP”) is to provide a structure which allows
the Board to differentiate between potential leasers or buyers and to give each
responding organization an opportunity to articulate what makes them an attractive
option for the community. In considering proposals, the Board is interested in identifying
a partner having the following nine characteristics:
~ A commitment to the continued provision of quality healthcare services to the
residents of the Mendocino Coast and the surrounding area
~ A strategic vision for the future of MCDH
~ A demonstrated culture of quality and accountability
~ A proven track record of operational success to ensure the ongoing vitality of MCDH,
as a stable and professionally rewarding organization for its employees and medical
staff
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Mendocino Coast District HospitalApril 11, 2019
Sufficient capital to allow MCDH to maintain high-quality care for its patients and
improve its physical facilities
A system reputation that will add value to MCDH’s existing brand and reputationwithin our community and among physicians, consumers, and insurance plans
Capabilities, facilities, clinical integration, leadership, and strategies necessary tobe well positioned for success in an era of healthcare reform
I A commitment to transparency in dealing with all its constituencies
• A demonstrated history of following through on its promises and commitments
Please be assured that all organizations submitting a response will be accorded fair
and equal treatment in the review of their respective proposals. The District’s
interim CEO will be available for questions or to provide additional information whenever
necessary.
To be considered responsive to this RFP, your proposal should address the
elements outlined below and in the following pages. Not all transaction elements
may be relevant to all participants.
Background Information on Your Organization
• Business and Hospital Operational Experience
I Describe your business and indicate the number of years of hospital
operational experience you can bring to MCDH through your operations,governance, and management.
• Organizational Structure and Current Scope of Services
I Describe the organizational structure or structures under which your business
or businesses are conducted (including joint ventures and partnerships) andthe current scope of services you provide.
• Please provide the following information regarding your organization:
~ Organizational chart
~ Description of your management, including key management personnel
I Description of your relevant experience with the type of transaction proposed
~ Tax status
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Mendocino Coast District HospitalApril 11, 2019
Description of the nature and extent of medical school affiliations, if any
Locations of facilities and businesses operated
Audited financial statements for the most recent three (3) fiscal years.
Description of the basis on which you believe that you have sufficient current
and future financial resources to support the payments due under the terms of
the proposed transaction and to operate MCDH on a basis which is consistentwith the commitments set forth in this RFP.
Identification and contact information for your team members, including legal and
financial advisors, if any.
Description of programs you have implemented that have changed
healthcare in the communities in which you operate.
Strategic Planning
Describe your strategic focus, plan, direction, and goals, as well as the
challenges you face in achieving these objectives, and how you plan to addressthese challenges.
Describe how you see MCDH helping your system accomplish these goals and
how you plan to integrate MCDH into your system.
Legal Actions/Inquiries
Describe any prior or currentipending state or federal legal actions/inquiries
involving your organization, your management, or Board of Directors.
• Ethical and Religious Directives
~ Describe any ethical or religious directives of your organization that would
impact the future operations of MCDH.
Structure of the Proposed Transaction
Describe the specific amount, terms, timing, and form of capital commitments you are
prepared to make in a relationship with MCDH.
Describe your commitment to assume all pre-transaction and post-transaction
liabilities of MCDH and provide indemnification of MCDH against such liabilities,
along with evidence of appropriate financial resources to support such
indemnification.
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Mendocino Coast District HospitalApril 11, 2019
Legal Entity for Agreement with MCDH
Describe the legal entity that will enter into an agreement with MCDHregarding the transaction that will own, operate, or hold any required
licenses for the delivery of healthcare services at MCDH.
Board of Directors
Describe the proposed governance structure and the ongoing role of MCDH’s
current Board.
Comm tmentslObjectives
As to each of the Commitments set forth below, you are asked to agree to the
Commitment1 describe how you are handling similar commitments within your existing
organization, and how you intend to ensure meeting the Commitment if you arechosen as the successful party to negotiate with MCDH.
• Operational Commitments
~ Describe your commitment to operate MCDH as a full service acute carehospital for the foreseeable future.
~ Describe the proposed management organization structure for MCDH following
the closing of a transaction.
• Rights of Reversion
b Describe your commitment to provide MCD H, or a surviving organization, with
rights of reversion of the operations and assets of MCDH in the event youfail to meet your commitments or if there is a bond defauft or sale,
insolvency, or bankruptcy of your organization.
Maintaining Charitable Purposes and Meeting Community Healthcare needs
Describe your commitment to maintain the mission/vision of MCDH, and
collaborate with the District to meet the current and future healthcare needs ofthe community.
• MCDH StaffingI Retention of current MCDH staff, who are currently under the employment of
the current lessee of the Hospital.
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Mendocino Coast District HospitalApril 11, 2019
D Describe your commitment to retain MCDH employees following the closing
of a transaction.
D Describe any anticipated employee benefit changes.
D Demonstrate any staffing or other plans to achieve economies of scale.
Clinical Services and Physician Recruiting
Describe your commitment to take steps to ensure that, subject to patient
choice, all medical services for which there exists financial capability at MCDH
will be performed locally rather than at outlying, tertiary care facilities,
whether or not owned or controlled by your organization.
Describe your commitment to maintaining existing clinical services at MCDH
and indicate the minimum timing that you are prepared to make for maintainingsuch services.
Describe any new services you anticipate implementing during the next five years.
Describe commitment to expend significant financial resources to recruit new
physicians to the community and grow MCDH’s current complement of clinicalservices, and specify what level of capital commitment you are making to do so.
Describe which, if any, clinical services may not be maintained at MCDH.
Clinical Quality Improvement
Quality Measurement
Describe your commitment to develop and implement a proven plan for
clinical quality measurement utilizing national and regional benchmarks and
accountability.
Staff DevelopmentDescribe your commitment to develop and implement a proven plan for
improvement of the medical staff, nursing staff and non-physicianpractitioners with corresponding education and training programs, includingdevelopment and implementation of centers for excellence in specific clinicalareas.
• Capital Improvements
Describe your commitment to needed capital improvements, including funding of
growth initiatives intended to maintain facilities, equipment, and other capital
items at a state-of-the-art level for comparable community hospitals.
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Mendocino Coast District HospitalApril 11,2019
Competition and Right of First Refusal
Describe your commitment (a) not to own or operate any other entity which
competes with MCDH in its service area and (b) to afford MCDH or a survivingorganization with the right of first refusal in the event you should seek to sell the
assets or operations of MCDH following the closing.
Strategic Vision
Describe the strategic vision you have for your presence and role in Mendocino
County. How does MCDH fit into and allow you to achieve that vision? Describe
the strategies that are currently beyond the reach of MCDH and that are
possible with your involvement to deal with evolving payment systems,
including a well-designed strategy for Accountable Care and population health
management readiness.
Information Technology
Describe your commitment to provide MCDH with information technology that
will support clinical excellence, integrate MCDH with other system facilities,
meet all federal and state requirements for funding, and promote participation
and success in evolving payment structures.
After receipt of Proposals, MCDH may, based at its sole discretion, select
organizations with which to continue affiliation discussions. MCDH requests that your
Proposal be as specific and detailed as possible. Site visits at MCDH can be
arranged prior to the Proposal submission deadline.
Proposal Submission Deadline: May 10, 2019
Contact Person:
Wayne C. Allen Mendocino Coast District HospitalInterim CEO 700 River Drive707-961-4630 Fort Bragg, CA. 95437wallen mcdh net
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