Sanford Health, based in Sioux Falls, S.D., and Liberty Medical Center in Chester, Mont., have ratified a management agreement, effective March 24.
According to the deal, Sanford is managing all operations of the 25-bed critical access hospital. Sanford also oversees Liberty's rural health clinic, skilled nursing facility and assisted living facility. Sanford's Derek Daly is serving as CEO of Liberty.
However, Liberty still maintains independence and all decision-making authority.
Liberty, which has 100 employees and a medical staff of four, wanted a management agreement with a prominent health system to help stem the tide of challenges associated with healthcare reform. "Rural hospitals face many challenges, and this relationship with Sanford Health will assist us in our goal to maintain a long-term, strong future so we can continue to provide quality healthcare to over 3,000 people in the region," said Kirsten Kammerzell, Liberty's board chair, in a news release.
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