Overview
Mind Springs Health and its financially strapped psychiatric hospital could potentially be for sale, although officials at the mental health provider dispute this claim.
Interest from Lion Health System
The Grand Junction-based provider, which serves ten counties in western Colorado, has reportedly caught the attention of Lion Health System, a national specialty health care system based in New Jersey. This information comes from emails obtained by The Daily Sentinel through the Colorado Open Records Act.
Legal Discussions
In July, a lawyer from Foley & Lardner, a law firm based in Milwaukee, Wisconsin, reached out to Colorado Department of Health Care Policy & Financing administrators to coordinate a meeting on behalf of Lion Health System. The purpose was to discuss the status of Mind Springs, their proposed operational approach, and post-acquisition plans.
Mind Springs’ Response
Despite the speculation, Mind Springs officials have downplayed the notion of a sale. CEO John Sheehan stated, “Over the past two years, the Mind Springs team has worked diligently to achieve full compliance with state and federal regulations and has greatly enhanced quality and integrated access to care for patients in the communities we service.” He emphasized that their primary focus is to collaborate with state and community partners to establish a sustainable funding model.
Financial Challenges
The potential acquisition could help alleviate Mind Springs’ recent financial struggles. However, it is important to note that any new ownership would still need to address the existing issues with state licensing.
Concerns and Disputes
Mind Springs has faced community concern regarding its psychiatric hospital’s potential closure due to ongoing financial issues. Sheehan attributed these challenges to disputes with Rocky Mountain Health Plans over Medicaid reimbursements, which led to a significant disagreement over a $7 million claim.
Resolution and Future Outlook
After a restraining order and subsequent arbitration, a settlement was reached in May, alleviating immediate concerns about the hospital’s closure. This settlement included a new reimbursement contract and clarified the financial obligations between Mind Springs and Rocky Mountain Health Plans.
Conclusion
While the future remains uncertain, the ongoing discussions and potential partnerships could play a crucial role in ensuring the stability of Mind Springs Health as a vital community health asset.
FAQs
Q: What is the current status of Mind Springs Health?
A: Mind Springs Health is reportedly exploring potential partnerships but has not confirmed any sale.
Q: How has the community reacted to the news?
A: There have been concerns regarding the hospital’s financial stability and potential closure.
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