UAB Health System Signs Affiliation Agreement

UAB Synopsis, Vol. 24, No. 27, July 18, 2005

David Hoidal Extending a relationship established more than a year ago, UAB Health System (UABHS) and Baptist Health of Montgomery have entered an agreement whereby Baptist Health will become a UABHS affiliate.

On June 28, the University of Alabama Board of Trustees created a health care authority into which Baptist Health will transfer its three hospitals — Baptist Medical Center South and Baptist Medical Center East, both in Montgomery, and Prattville Baptist Hospital. The agreement calls for creation of a new governing board for the health care authority, with six members selected by the UA system and five members by Baptist Health. The health care authority board will have full governance powers over the business and affairs of Baptist Health, while the UA system and Baptist Health boards will maintain oversight and reserved powers. The Baptist Health name and faith-based mission will not change.

New board members are Dennis Boulware, MD, senior associate dean of the School of Medicine (SOM) at UAB; Joseph C. Espy III, UA board member; Carol Garrison, PhD, UAB president and chair of the UABHS Board of Directors; John Henig, chair of the Baptist Health Board of Directors; David Hoidal, UABHS CEO; Charles Ingalls, MD, vascular surgeon; F. Cleveland Kinney, PhD, MD, senior associate dean for clinical affairs at UAB's SOM; The Reverend Ken May, director of Missions for the Montgomery Baptist Association; Kay Miller, retired bank executive; David Patrick, senior vice president/branch manager, Wachovia Securities; and James W. Wilson III, UA board member.

UAB entered into a management agreement to oversee Baptist Health in March 2004.

"The relationship between UAB and Baptist Health has grown in scope in the past year," Hoidal says. "We have found a multitude of instances whereby the two systems are able to benefit each other in the public interest. UAB will have opportunities to enhance its education and research opportunities, while Baptist Health will gain operational and financial efficiencies through partnership and establishment of a health care authority structure."

"We are very proud of the work that has been accomplished over the past year between UABHS and Baptist Health boards," Henig says. "Together, we have found a solution that will ensure the long-term viability and growth of health care services provided to the residents of central Alabama."

"Baptist Health remains the primary provider of health care services in central Alabama. This partnership will help ensure the organization's ability to honor its mission and provide essential care and services for the benefit of our community," Russell Tyner, president and CEO of Baptist Health, says. "Additionally, the affiliation will offer certain economic advantages, which will allow us to focus on growth of services, invest in new technology, and enhance our physician network."

"Extending our working agreement with Baptist Health provides both institutions with opportunities for continued efficiencies and opportunities for growth," says UABHS Executive Vice President Steve Pickett, who served as the chief restructuring officer of Baptist Health.

Baptist Medical Center South has long been a training site for some 18 to 20 UAB residents annually. It also is a medical training site for approximately 20 residents in the Baptist Health Family Practice residency program. Additionally, nearly 40% of physicians at Montgomery Baptist Hospitals are graduates of the UAB SOM.

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