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Shedding CKHA's multiple corporate, governance structures

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Any chance of a battle between Wallaceburg and Chatham hospital boards will be gone under new corporate and governance structures proposed for the Chatham-Kent Health Alliance.

Rob Devitt, the provincially-appointed supervisor who has been running the Health Alliance since September 2016, announced Thursday his plan to merge the three corporations – Public General, St. Joseph's and Sydenham District hospitals – and their three separate boards of directors, into a single corporation with a single board.

Devitt said the Health Alliance’s three corporations with its three boards were the only part of the operation that wasn't integrated, adding the organization has a single medical staff, patient record, payroll and general ledger.

He compared the situation to having three bosses.

“That's a fundamental flaw.”

Devitt said the first change will be the Corporate Objects in the Letter Patent, which he described as “the most fundamental, foundational piece of an organization, in terms of the legal documents.”

He said this will clearly articulate the plan to develop a system of hospital services on two or more sites.

Dr. Pervez Faruqi, chief of staff since the new medical leadership was put in place during the restructuring process, said there has been no distinction between Wallaceburg and Chatham physicians.

“Most of the physicians are working at both sites, so it's only logical to have a single corporation that will simplify the governance,” he said. “The way I see it, it's win-win situation.”

But moving to a single corporation means breaking ties with the Sisters of St. Joesph's.

“We have tried to negotiate a voluntary exit,” Devitt said, adding he has spoken with the St. Joseph's Care Society about a transfer in purchase and sale.

Noting he didn't want to get into the details, but that it should be finalized shortly, Devitt said it’s the same process used when assets were transferred at hospitals in Sarnia, Sudbury and Peterborough.

“It will not be any money coming out of the hospital's current budget,” Devitt said, adding it will be worked through the province.

He said he’s found support within the community for having a non-denominational hospital corporation as well as a single corporation with one board.

During a community meeting outside of Chatham and Wallaceburg, Devitt said the most common comment heard regarding governance was: 'I'm sick and tired of hearing about Wallaceburg versus Chatham. What about me?'

Devitt said he will recruit the new 12-member board using the services of an executive search firm, as well as a committee composed of Health Alliance leadership, a member of the rural health advisory committee and three residents – one from the north, central and south area of Chatham-Kent.

Based on the research of best practices for hospital governance, he said, “The evidence tells us it's a skills-based board.”

Devitt said there will be a “skills-screen” for every director, adding as an example that candidates with financial experience with a complex, large organization will be among those sought.

Six directors will come from each of the wards in Chatham-Kent, one will come from a First Nations community served by the hospital, and the remaining five will be citizens-at-large.

Devitt said during his community engagement, he heard from people who wouldn't have wanted to be part of the old governance structure, and viewed it as being very stressful.

“I hope people see this and view this with excitement,” he said.

Devitt said there will be plenty of support provided for the new board.

“The key will be training the board and having ongoing board education about the complexity of healthcare and about good governance.”

His proposed revamping of the corporate and governance structure still needs the blessing of both the Erie St. Clair LHIN and Ontario Ministry of Health.

An investigator, appointed by the province in August 2016, issued a scathing report on serious governance and financial issues at the CKHA, which had amassed a $21-million debt.

If approved, Devitt said he will also recommend a “coach” be appointed to help administration and the new board for an 18-month to two-year period “to make sure that the old culture doesn't creep back in.

“I think it's very important that the board have that, because culture is very powerful and it's also invisible,” he added.

Devitt said the signs of where the Health Alliance was heading were there five years ago, “but, no one was there to be that sort of bellwether.”

 

 

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