Portage County Commissioners have approved a lease agreement that will change Robinson Memorial Hospital in Ravenna, Ohio, from a county-owned hospital to a non-profit hospital.
The Portage County Commissioners voted March 13,to approve the conversion of the hospital to non-profit status subject to the negotiation and execution of a lease agreement between the County and a newly formed non-profit company — Robinson Health Systems — that will operate the hospital.
A 15-member board of directors will govern the hospital, and will include 10 current Robinson Memorial Hospital board members and five new board members.
Status as a non-profit hospital will help Robinson Memorial Hospital employ physicians at market-competitive compensation and benefits rates and to enter into other contractual and business arrangements with physicians, such as co-management agreements and joint ventures, according to the release.
In addition, the hospital will have the ability to offer employees a more competitive benefits plan, develop for-profit joint ventures or enter into for-profit arrangements with other parties, optimize access to capital and have the flexibility to invest in a broad range of investment alternatives, according to the release.
The lease agreement will be effective immediately, but the hospital will not begin to operate as a non-profit hospital until the Internal Revenue Service approves its application for tax-exempt status.
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The Portage County Commissioners voted March 13,to approve the conversion of the hospital to non-profit status subject to the negotiation and execution of a lease agreement between the County and a newly formed non-profit company — Robinson Health Systems — that will operate the hospital.
A 15-member board of directors will govern the hospital, and will include 10 current Robinson Memorial Hospital board members and five new board members.
Status as a non-profit hospital will help Robinson Memorial Hospital employ physicians at market-competitive compensation and benefits rates and to enter into other contractual and business arrangements with physicians, such as co-management agreements and joint ventures, according to the release.
In addition, the hospital will have the ability to offer employees a more competitive benefits plan, develop for-profit joint ventures or enter into for-profit arrangements with other parties, optimize access to capital and have the flexibility to invest in a broad range of investment alternatives, according to the release.
The lease agreement will be effective immediately, but the hospital will not begin to operate as a non-profit hospital until the Internal Revenue Service approves its application for tax-exempt status.
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