Accord shifts control to UCH

The Tampa hospital would become the lone member of the Tarpon Springs Hospital Foundation, which operates Helen Ellis.

By KATHERINE GAZELLA

© St. Petersburg Times, published April 19, 2000

TARPON SPRINGS -- An agreement between University Community Hospital in Tampa and the board that operates Helen Ellis Memorial Hospital gives UCH ultimate control of most decisions at the local hospital.

Late Tuesday, UCH made public the details of its affiliation agreement with the Tarpon Springs Hospital Foundation, which now operates Helen Ellis in city-owned buildings. The affiliation agreement was approved by the foundation late last week and by UCH Monday.

Under that agreement, UCH becomes the sole member of the Tarpon Springs Hospital Foundation, which will operate the 168-bed facility. A new group, call the "New Foundation" in the affiliation document, will be formed to raise funds for the hospital.

The agreement states that the Tarpon Springs Hospital Foundation board will be made up of 12 voting members, six of whom will be appointed by UCH. One of those six will be the chief executive officer of the Tampa hospital. One of the 12 will be a member of the Helen Ellis medical staff, and five members will be residents of Tarpon Springs or surrounding communities.

Those five community members will be chosen by the new foundation, but UCH will have the right to accept or decline the nominees.

The 12-member board will have oversight of budget issues, staffing issues and patient care at Helen Ellis. But UCH will be able to approve selection or removal of senior managers at Helen Ellis and also will have final approval of major expenditures and all operating and capital budgets.

"The intent is for the local board to operate the hospital with the local needs in mind," said Calvin Glidewell, vice president of development at UCH. But, he said, "UCH has ultimate authority over most of the strategic and major capital decisions."

UCH's authority goes even farther. If the 12-member board ties on a vote, the CEO of UCH will cast an extra vote to break the tie.

The Tarpon Springs Hospital Foundation also will gain control of the current foundation's subsidiaries, including West Coast Medical Group Inc., Helen Ellis Physician Hospital Alliance Inc. and Helen Ellis Memorial Hospital Real Estate Corp.

Helen Ellis employees will receive the same pay, comparable benefits and pension vesting rights for a period of six months under the affiliation agreement. During that time, no positions will be cut.

After the six-month period, Glidewell said, UCH will try to operate at a level consistent with other not-for-profit hospitals in the area. He said that may or may not lead to staff cuts.

The hospital will not have any religious affiliations, will retain the Helen Ellis Memorial Hospital name and will continue to provide charity care consistent with historical levels, the agreement states.

"The affiliation ensures that Helen Ellis will remain a community-oriented, not-for-profit hospital," said Lester Garner, president of the Tarpon Springs Hospital Foundation.

In coming weeks, the city and UCH will negotiate a 40-year lease agreement. The affiliation deal calls for UCH to pay off the Tarpon Springs hospital's bond debt while paying $250,000 a year to lease the hospital property. The affiliation agreement does not require city approval.

The city plans to hold a July 11 referendum in which Tarpon Springs residents will decide whether to approve the city's lease with UCH. If voters and the City Commission approve, then UCH and Helen Ellis officials will proceed to complete the affiliation. Garner said in a statement that his goal is for the deal to close by the end of August.

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