PERRY COUNTY - Round one of the merger talks between Pinckneyville Community Hospital and Marshall Browning Hospital in Du Quoin went so well, both hospital boards have decided to continue talks and studies.

Both boards have agreed to have the strategic planning committees from the two facilities meet and continue discussions and fact-finding. PCH Administrator Tom Hudgins and MBH Administrator Bill Huff said the next step is to hire someone to conduct a market analysis and site study.

These steps are crucial and it's quite possible the information and recommendations that result will determine if some sort of combined countywide healthcare facility becomes a reality, officials said. Outside help will be brought in to assess the market and to study all the facets involved in order to recommend a suitable site.

A number of factors come into play, including land availability, access to affordable utilities, and proximity to major highway transportation.

The two hospitals received $55,000 in grant funding some time ago to study healthcare needs and possibilities. Hudgins said about $20,000 remains after some has been expended for preliminary studies, financial analysis and attorney fees. The new studies will likely take one to two months. The committees from each hospital, and ultimately the entire boards, will review the data again then and see if they still wish to proceed with talks about merging.

"We're doing one piece at a time," Hudgins said. "This is no rush to move this. Both sides realize this needs to be done with care and deliberation."

Hudgins and Huff said thus far, public comment has been favorable regarding talks of the two facilities linking. They say people realize it's difficult in today's economy to provide the best in healthcare at reasonable prices in small communities.

"I have not heard any negative comments at all," Huff said. "All I've heard is positive, people thinking it needs to be done. Some people are saying it should have been done a long time ago."

The two hospital boards have already reviewed current and projected future financial information and other data from each hospital as well as trends in healthcare. Reimbursements from insurance companies and Medicare and Medicaid continue to fall and that trend is likely to continue while the healthcare provider costs will likely continue to climb, research has indicated. The two existing hospitals are just miles apart and there is a lot of duplication of services along with many instances of expensive equipment being insufficiently used at either facility.

Officials believe it would save at least $500,000 annually if there were one emergency room instead of two. If the facilities merged, high-priced diagnostic and other equipment would be better utilized.@jump from:From page 9A

Marshall Browning, dating to 1922, is a private, 25-bed critical access hospital employing about 170. It also owns a nearby 22-unit independent living facility. Pinckneyville Community Hospital opened in 1956 at its current site and has about 300 employees. PCH is also a 25-bed critical access facility and includes a 50-bed skilled care unit as well. PCH also operates a fitness center.

Annual gross revenues at MBH total more than $20 million while at PCH yearly revenues hit about $28 million. Studies conducted on behalf of the hospitals show that even with little or no growth, a joint facility would be economically sound. If plans proceed for a merger, decisions would have to be made about the fate of the existing facilities as well as whether the new hospital would be a private or public facility.

There are no definite plans or firm commitments regarding a merger at this time. Rather, ample study and discussion are planned to assure the idea is sound and that the public understands and welcomes a new combined healthcare facility. Officials said they think joining forces may be the only way to ensure quality healthcare services in Perry County for many years to come.

If the two hospitals agree to continue in this mode, it's possible they could formally link by January 2006. Groundbreaking for a new hospital could come about a year later.

mathis5@;hcis.net

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