AICS announces SEARHC merger

Last week a Wrangell-based clinical services provider announced its formal merger with another regional health service.

Alaska Island Community Services (AICS) and SouthEast Alaska Regional Health Consortium (SEARHC) will formally affiliate; a process which is expected to be finalized by the beginning of February 2017.

Since 1989 AICS has provided clinical and mental health services to the community, expanding its service range to Petersburg, Gustavus, Point Baker, Port Protection, Coffman Cove, Whale Pass, Naukati and Edna Bay. Last month it announced it would be taking over administration of the Juneau Front Street Community Health Center as well.

Established in 1975, SEARHC is a non-profit tribal health consortium representing 18 Native communities in Southeast Alaska. Among its other programs, it operates Mt. Edgecumbe Hospital and the Ethel Lund Medical Center in Juneau.

Under the impending arrangement, SEARHC will provide AICS with support in administrative, quality improvement, compliance, information technology and finance management services, and will provide procurement and biomedical equipment support. It will also be responsible for practice management, regulatory compliance, performance improvement, human resources and facility maintenance services.

“Because of our size, we are probably able to provide more administrative support,” explained SEARHC chief operating officer Dan Neumeister. “A lot of the things that you really don’t see as a patient, but you need to be successful as a clinic.”

Once the transition is made, SEARHC will assume operational and management support roles while AICS continues operating out of all existing facilities and locations. As part of the new affiliation, AICS will retain its name, and Neumeister explained its board is currently planned to be reintegrated into an advisory council, which will continue to monitor quality of care and patient satisfaction, and will provide direct feedback to SEARHC.

This council will also oversee a community foundation, created with a portion of AICS’ financial reserves, to help support programs and services dedicated to improving the health of Wrangell’s residents.

In transit, AICS director Mark Walker was unavailable to comment directly on the transition by Tuesday’s press time. In a prepared media release, he explained: “Changes in the healthcare environment are creating tremendous fiscal pressures resulting in declining revenues and increasing expenses. By affiliating with SEARHC, we can continue providing quality services we can be proud of and that benefit our patients, residents and communities.”

As for jobs, Neumeister explained that while efficiencies would be sought in future, current employment would not be affected by the transition.

“We’ve committed to the employees and to the board that no one will lose their jobs,” he said.