The boards of Rainycrest Home for the Aged and Riverside Health Care Facilities, Inc. here announced yesterday they have signed a Memorandum of Understanding that is expected to result in Riverside assuming ownership, governance, and management of the home.
Spokespersons stressed, however, that much work remains to be done before the amalgamation is completed.
An amalgamation steering committee comprised of representatives of Rainycrest and Riverside, chaired by Scott Rowand, the consultant engaged by the Ministry of Health and Long-Term Care to recommend options for permanent local governance and management of Rainycrest, met Monday to begin working out details.
The ministry assumed control of Rainycrest back in March, 2005 and appointed Riverside to manage the home on its behalf.
When details are finalized and approval is received from provincial authorities, Rainycrest is expected to become part of Riverside, operating under the control of its volunteer board of directors, which already provides acute, chronic, and long-term care health services at facilities in Fort Frances, Emo, and Rainy River.
The contribution of $1.2 million to Rainycrest’s annual operating budget (about 15 percent) now made by the 10 municipal governments in Rainy River District will decrease over the next five years and cease beginning Jan. 1, 2011.
Funding from the Township of Atikokan, whose citizens make little use of Rainycrest, will be redirected to the Atikokan General Hospital to support local long-term care programs when the deal is finalized.
As part of planning for the transfer of Rainycrest to Riverside, consultants will conduct an operational review and develop a financial plan that identifies new revenue and cost-savings opportunities that can be phased in over the five-year period to make up for the reduction in municipal funding.
Rowand noted there are at least 10 other examples in the province where public hospitals like Riverside have long-term care facilities and provide services similar to Rainycrest “. . . but appear to operate at a lower cost because of benefits derived from shared resources, enhanced management, greater purchasing power, and other synergies.”
“This arrangement will be good for the residents of Rainycrest, will assure sustainability of the home, and will benefit taxpayers throughout the district,” noted Fort Frances Mayor Dan Onichuk, who also chairs Rainycrest’s board of management.
Robin Wright, chair of Riverside’s board of directors, agreed.
“[But] before a final agreement is reached, our board must be assured that the residents of the home will continue to receive quality care and service on one hand, and that this can be done without negatively impacting Riverside’s obligations to our patients or existing programs on the other,” he cautioned.
Atikokan Mayor Dennis Brown, a member of Rainycrest’s board, said he is optimistic that, from the goodwill he has seen from everyone involved, including the health ministry, that we will get this done.
“I am especially pleased that the $200,000 now contributed by the taxpayers of Atikokan to Rainycrest can be invested in services badly needed locally by seniors in our community,” he added.
“The direction is consistent with provincial policy favouring integrated health services delivery, and I anticipate that when all of the details are worked out, the model will position Riverside as a leader within the North West Local Health Integration Network recently announced by the province,” noted Riverside president and CEO Wayne Woods.
Over the next month, in addition to the operational review, the amalgamation steering committee will arrange for an assessment of needed upgrades to Rainycrest’s physical facilities and other work will be done to determine the feasibility of amalgamation.
The Ministry of Health and Long-Term Care also will advise on its procedures and requirements to approve the transfer of ownership.
“With governance and municipal funding resolved in principle, which were stumbling blocks in previous amalgamation discussions, and assuming we can reach satisfactory agreement on other issues, I expect we can finalize the transfer by early September,” said Rowand.
The steering committee will develop an implementation plan, along with the necessary legal documents, over the summer for approval by the boards of Rainycrest and Riverside, municipal corporations in the district, and provincial authorities.
Meanwhile, Rainycrest’s board of management has consented to continued control of the home by the Ministry of Health and Long-Term Care until its future is resolved.
Fort Frances Times
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