The Hermann (Mo.) Area District Hospital is seeking a "deeper affiliation" with Mercy Health or another provider as it projects to lose $2 million in 2022, The Washington Missourian reported Dec. 8.
Matt Siebert, the 24-bed hospital's assistant administrator, told the outlet that most rural hospitals are "looking for economies of scale and deeper affiliations with bigger units to help cut costs and get better reimbursement," so they've been talking with Mercy to see if it is interested in managing the hospital. He said they've also been in talks with Oklahoma City-based Avem Health Partners about a potential managerial role.
Hermann already has an affiliation with Mercy due to its status as a critical access hospital, according to the report.
Mr. Siebert told the outlet the discussions are in early stages but said the potential partnership is an "important step for us to decrease our footprint."
Hermann made the decision Nov. 28 to close its home health agency at the end of the year. Mr. Seibert said the decision will save the hospital more than $200,000 annually.