Allen County Regional Hospital Board Approves Agreement with Saint Luke’s Health System

IOLA, KS — The Allen County Regional Hospital Board voted last night to lease Allen County Regional Hospital to a subsidiary of Saint Luke’s Health System. The ACRH board had signed a letter of intent in March to pursue a possible agreement with the Kansas City-based, non-profit healthcare system.

ACRH has operated under a management contract with HCA Healthcare since 2013. That contract expires in June 2020, which prompted trustees to evaluate alternatives, accepting proposals from four companies including Saint Luke’s and HCA.

The initial lease term will be for ten years with subsequent five-year renewal options. All employees who meet SLHS requirements will become employees of Saint Luke’s under the new lease agreement.

Under the terms of the lease, ACRH will be governed by a board of directors, the majority of which will be local citizens nominated by the Allen County Commissioners. Up to three representatives from Saint Luke’s Health System will also serve on the board.

“The new partnership with Saint Luke’s offers wonderful opportunities for our patients, employees, and community,” said Loren Korte, Allen County Regional Hospital Board Chairman. “One of the elements that made the relationship with Saint Luke’s so appealing from the beginning was their respect for our community and their willingness to have local citizens comprise the majority of the new hospital board. We will have the benefit of a strong organizational partner and can be confident that the needs of our community will be represented.”

“Allen County Regional Hospital provides vital services to the citizens of Iola and the surrounding community,” said Julie Quirin, FACHE, Saint Luke’s Health System Chief Operating Officer and Senior Vice President. “Saint Luke’s is deeply committed to strengthening those services and bringing the resources of our health system to continue to serve patients and the community.”

Saint Luke’s has a similar lease agreement with Anderson County Hospital in neighboring Garnett, KS.

Transition details will be finalized following the signing of the formal lease agreement.

Allen County Regional Hospital is a 25-bed Critical Access facility serving Allen County, Kansas, and the surrounding communities. They offer a 24-hour Level IV Trauma Center, specialized services such as general surgeries, wound care, "swing bed" skilled nursing care, rehabilitation services, home health and hospice care, and comprehensive family care through their rural medical clinics. Allen County Regional Hospital also provides a variety of outpatient specialty services including cardiology, dermatology, oncology, vascular surgery, pain management, podiatry, and more.

Saint Luke’s Health System consists of 18 area hospitals and campuses as well as dozens of primary and specialty care practices, and provides a full range of inpatient, outpatient, and home care services. Founded as a faith-based, not-for-profit organization, our mission includes a commitment to the highest levels of excellence in health care and the advancement of medical research and education. The health system is an aligned organization in which the physicians and hospitals assume responsibility for enhancing the physical, mental, and spiritual health of people in the metropolitan Kansas City area and the surrounding region.