2001-054-RES STATING SUPPORT FOR PLAN TO DEVELOP NEW HEALTH CARE SYSTEM

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RESOLUTION NO. 2001-054 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, STATING SUPPORT FOR THE PLAN TO DEVELOP A NEW HEALTH CARE SYSTEM AS A RESULT OF THE NON-BINDING LETTER OF INTENT SIGNED ON FEBRUARY 22, 2001, BETWEEN CHRISTUS ST. JOSEPH'S HEALTH SYSTEM AND TEXAS HEALTH RESOURCES, THE PARENT COMPANY OF MCCUISTION REGIONAL MEDICAL CENTER; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, for more than 100 years, the Paris community and the residents of Northeast Texas and Southeast Oklahornahave been blessed to have high-quality health care readily accessible; and, WHEREAS, that health care has been provided by two organizations - CHRISTUS St. Joseph's Health System and McCuistion Regional Medical- both of whom share a common purpose, to care for area residents, and ultimately create a healthier community; and, WHEREAS, CHRlSTUS St. Joseph's Health System was founded in 1911 and is now part of CHRISTUS Health, a not-for-profit health system based in Dallas, and McCuistion Regional Medical Center began serving the community in 1912 and is owned by Arlington-based Texas Health Resources, the largest not-for-profit health care system in Texas; and, WHEREAS, the two health care organizations have been leaders in providing health care to the area, serving primarily a rural population compromised of a large number of Medicare and Medicaid patients; and, WHEREAS, over the past several years reimbursement for care provided to Medicare and Medicaid patients has been drastically reduced, resulting in a significant negative financial impact on both organizations, threatening their long-term viability as free-standing facilities; and, WHEREAS, with the two organizations functioning independently for more than 80 years, duplicative programs and services have resulted and each organization has grown and plans continued growth and expansion to serve the community resulting in uncoordinated, duplicative building programs at each hospital campus; and, WHEREAS, after much discussion and evaluation, both organizations, their governing boards, and their parent companies believe the health ofthe Paris community will best be served if the two hospitals come together to develop anew, single health care system for the area; and, WHEREAS, the leaders ofCHRlSTUS St. Joseph's and McCuistion view this as much more than merely combining two existing hospitals - rather it is an opportunity to develop a new model for a community-based health care system, with the potential to save millions of dollars for the community; and,