By Dewey Terrill

JC Post

The expense of KPERS ( Kansas Public Employee Retirement System ) was one of the factors in the inability of Geary Community Hospital and Salina Regional Health Center to enter a merger. The fact that there would be no merger was announced last week.

Geary Community is a publicly owned hospital with employees earning KPERS benefits. Salina Regional is a privately owned hospital.

Joe Stratton, CEO at Geary Community, was asked about the KPERS issue and how it could be adjusted for future discussions with other healthcare entities.  Stratton noted that if GCH is in a position that they are going to have a partnership with another healthcare system and leaves the KPERS program, the only way to do it when you’re KPERS eligible is through insolvency or privatization, meaning you go into an arrangement with another organization.

Stratton stated that possibility was looked at closely and it would have a been a significant sum of money to extract GCH from KPERS from a decision that stemmed back to 1990. He confirmed that Geary Community spends about $400,000 to $500,000 extra per year to remain in the KPERS fund as a hospital.

Stratton added when partners look at you it’s something that they’re concerned about and wonder about.

Geary Community Hospital is dealing with financial challenges, like many other hospitals.