Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, April 21, 1990                   TAG: 9004210267
SECTION: VIRGINIA                    PAGE: A-3   EDITION: STATE  
SOURCE: PAUL DELLINGER SOUTHWEST BUREAU
DATELINE: WYTHEVILLE                                LENGTH: Medium

HOSPITAL TALKING MERGER

Carilion proposed such a "second tier" regional board in a January letter outlining affiliation possibilities. The Wytheville-based hospital responded asking how the three hospitals would be represented.

Carilion has suggested five representatives from Radford Community Hospital, three from Wythe County, two from Giles Memorial Hospital and one from Carilion. The regional board would consider such matters as new or expanded services at Carilion's New River hospitals, specialty physicians, budget review, facilities planning and debt issuance.

The Wythe County Community Hospital board considered that idea and the others from Carilion at its April meeting. Scott Adams, hospital administrator, said the system would allow participating hospitals to add services in a region that none could afford alone.

One hospital might concentrate on cardiology services with support from the others, he said, while another might choose oncology or other specialties.

"That way, you would avoid duplication but you enhance services to the local people," he said. "We would be involved in the planning of those services, rather than sitting on the outside."

The hospital has contracted since 1978 with Carilion for management services. The management contract is scheduled for renewal Jan. 30. Carilion supplies the administrator, assistant administrator and controller but makes no financial contribution.

Adams said the board has been talking with Carilion since fall about the affiliation concept. A board committee visited Radford Community Hospital last summer to see how affiliation was working there, and decided it might be worth investigating.

All that has happened since then has been the exchanges of letters, he said. "It's probably premature even to call them negotiations yet. They're just discussions."

The hospital opened in 1972, having secured funding from federal Hill-Burton money and other grant sources along with private contributions and a $950,000 bond issue approved in 1967 by Wythe voters. Chitwood Memorial Hospital, a small facility started by local doctors, closed and transferred its patients to the new hospital.

Wythe County Community Hospital did some restructuring last month, including the combining of its cardiac rehabilitation, respiratory therapy and intensive care departments. Nineteen employees were laid off. The reasons given included changes in governmental and insurance reimbursement programs and a lowered number of patients.

Most Southwest Virginia hospitals are affiliated with larger health system organizations. In the region, the only other independent hospitals are Smyth County Community in Marion, Twin County Community in Galax and Johnston Memorial in Abingdon.