Scott & White acquires interest in Metroplex
Hospitals take first step toward agreement; Rollins Brook facility should benefit
By LISA CARNLEY Staff Writer

Ken Finch

Officials from Metroplex Health System and Temple-based Scott & White Memorial Hospital have signed a Letter of Understanding, and Metroplex President and Chief Executive Officer Kenneth A. Finch said the two organizations have taken the first step in forging an agreement that will augment healthcare options for Killeen and the surrounding communities.

The understanding calls for Scott & White to acquire a one-third interest in Metroplex and for the Scott & White Health Plan to consider applications from more Metroplexbased physicians to become participating providers.

"This will increase options and give the community a greater number of physician choices in the Killeen area," said Finch.

Rumors abounded last month that Metroplex, owned by Adventist Health System, was selling out and Scott & White was taking control. "They're not taking control," said the hospital official. "You can't take control with a third. We are not giving up control. Scott & White will be a partner with Metroplex.

"Metroplex and Scott & White will work together to develop quality improvement and patient safety plans which continue to support the development of Metroplex in serving our growing community."

Metroplex will retain its mission oriented approach to healthcare and continue to oversee management of its open-staff system, which includes a 213-bed hospital in Killeen and the 25-bed Rollins Brook Community Hospital in Lampasas, said Finch.

"Adventist Health System is committed to its mission. We're not in it for the money, and in order for us to follow our mission, we have to retain control and ownership. Our mission is our purpose, and we have to have ownership for that."

Though Rollins Brook will not feel the immediate impact of the agreement, it should affect the Lampasas health-care facility in a positive way in the future, said the Killeen official.

"In the long term, it should help encourage more specialists to come to Lampasas. The relationship we will have with Scott & White will give us the ability to keep more medical students in the area because of the additional options it will offer them."

Scott & White will recruit physicians to serve on the medical staff at Metroplex Hospital and practice full-time in the Killeen area.

Metroplex's primary focus is to put more specialists in place to practice at Metroplex, and there will be a spin-off benefit for Lampasas, Finch said.

Since Rollins Brook's assets are combined with those of its parent company -- Metroplex -- Scott & White will have an interest in the Lampasas hospital as well, he said.

Finch anticipates an agreement will be reached by early 2008, but said information will be released along the way. "We want to be as transparent about this as we can. When there's something to report, we'll report it."

In the early stages, board members from the Killeen and Temple hospitals each will consider the agreement.

An advisory board has been established in Killeen to evaluate Metroplex's position, said Finch. Richard Procter, Lampasas resident and Metroplex board member, and local physician Dr. James Cain represent Lampasas' interests.

When an agreement has been reached, it will go to Adventist Health System's board for approval. The agreement also will go before Scott & White's executive board for its endorsement.

Asked why Metroplex would divest itself of one-third of its interest, Finch said the investment is a way to provide an incentive for Scott & White to ensure the success of Metroplex. "If they didn't have an interest in Metroplex, there would be no incentive to make it work.

"This represents the beginning of a process that will bring more choices to the communities we serve," he said. "As the needs of our region grow and change, this seems like a natural way for us to continue to provide personalized care while we enhance the availability of options and services."

While details of the arrangement are under negotiation, Finch said the affiliation with Scott & White will improve Metroplex's ability to recruit and retain specialists and ensure that residents can find more of the care they need close to home.

The hospital executive also noted that corporate officials are pleased with the collaboration. "They all seem to be on the same page as we are."

He acknowledged that concerns remain from some Metroplex physicians. "Change is always hard. In the past, Scott & White has been a more exclusive and closed system, and they are undergoing changes, too.

"As this happens, we hope the physicians will see this can be beneficial to everyone, because it allows them to work more cooperatively."

Finch said in the early stages of discussion between the two hospitals, some personnel felt talks were being held behind closed doors. "Everything is being done out in the open, and as we get more details ironed out, more will be released. This is a process, and it is just in the early stages."

Added Finch: "I am excited about this. It is a good relationship because it will allow for more of the basic primary care that can be done here at home, at our community hospital, closer to our community members."

After the ink is dry on the contract, the official said an analysis will tell hospital personnel what specialties either are lacking or need additional personnel. Finch said that could include urologists, general surgeons, orthopedic surgeons, gastroenterologists and others.

Recruitment of physicians is difficult, Finch said, because more doctors coming out of medical school are looking for a group practice, as opposed to a situation like that at Metroplex, where most physicians operate independently.

"At this point, we are very optimistic that everything will go smoothly," he said.

"It will be a very big boost for Metroplex primarily, and then Rollins Brook will feel the benefits in the future.

"It goes toward our continued commitment of expansion and growth of our system, and that includes in Lampasas."