The Greater Fairbanks Community Hospital Foundation is planning to operate the community’s largest care facility and private employer. The decision follows in the wake of failed negotiations with Providence announced earlier this month. The Foundation is confident it has the management group in place to succeed.
Hospital Foundation President Jeff Cook will only say the talks with Providence hit a timing wall. He says, earlier this month he fully expected to announce a successful transfer of hospital operations from Banner Health to Providence by the end of December. Instead, he says the two sides couldn’t agree on terms. With other contracts to doctors and providers depending on a resolution and time running out, he says the foundation has started the process to take over operations.
“So, we’re as a hospital foundation, we formed a new entity called Foundation Health LLC, and that entity will then contract with the emergency room docs, the employee doctors,” Cook said. “Many of the doctors are employed and have contracts. Cause all those will be done when banner leaves.”
Providence Health and Services declined to comment on the failed negotiations. Cook said Banner has offered to continue providing some services, but its model of general operations isn’t compatible with foundation’s vision of a community facility. Cook said the foundation has tried to be as transparent as possible to staff about future plans.
“We’ve just got great directors and employees throughout and we’ve got the ability to contract for the services we need,” Cook said. “The staff is just energized. They’re excited about saying, ‘we can do this.’”
With some 1400 workers the hospital is the largest private employer in Fairbanks. Cook admitted by running and administering the hospital, the foundation will lose some efficiencies that a larger operator could bring to the table. And he says it is still open to an outside provider taking over if a good match is found.
