2001-054-RES STATING SUPPORT FOR PLAN TO DEVELOP NEW HEALTH CARE SYSTEM
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,
WHEREAS, CHRISTUS St. Joseph's Health System and Texas Health Resources have
signed a non-binding letter of intent to consolidate CHRISTUS St. Joseph's Health System and
McCuistion Regional Medical Center into a new health care organization by the purchase of
McCuistion's building, equipment and certain services by CHRISTUS St. Joseph's; and,
WHEREAS, all of the health care services currently available to the Paris community will
continue to be available after the transaction has been completed between the two organizations, and
it is the intent of Texas Health Resources to invest the net proceeds of the sale of McCuistion to
CHRISTUS St. Joseph's in a not-for-profit foundation designed to improve the health of the
comrnunities served by the two hospitals; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That the City Council of the City of Paris, Paris, Texas, fully supports the
consolidation of CHRIST US ST. Joseph's Health Care System and McCuistion Regional Medical
Center for the purposes of improving the health care in our community and the region.
Section 3. That this resolution shall be effective from and after its date of passage.
PASSED AND ADOPTED this 14th day of May, 2001.
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~ J. Pfie er, M or
ATTEST:
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Mattie Cunningham, City Clerk --
APPROVED AS TO FORM: