KRMC To Become Non-Profit

The Kentucky River Medical Center in Jackson announced on Thursday, May 21, that its parent company, QKA Health Corporation, had completed an agreement that would allow the hospital to transition to a non-profit medical facility.

In a press release issued by Quorum Health, of Brentwood, Tennessee, the organization said it “entered into a definitive agreement” with QKA Health Corporation that will “enable the organization to transition from a for-profit, private equity-backed model to a nonprofit health system.”

“This transformation marks a new era for Quorum Health,” said Chris Harrison, CEO of Quorum Health.  “The reality is that our industry is constantly facing growing financial, operational, and regulatory pressures.  By becoming a nonprofit, we are strengthening our ability to serve rural communities that rely heavily on government-sponsored programs.”

According to officials, under the agreement, the hospital and physicians in the QKA system will continue to operate “under a mission-driven, community-focused model,” but the arrangement would allow the Jackson hospital and others to access “new opportunities for philanthropic support, tax-exempt funding, and expanded partnerships.”

Quorum Health describes itself as a “leading provider of hospital and outpatient services across rural and mid-sized communities” focused on delivering “sustainable, quality care in rural and mid-sized communities.”

The agreement, signed recently, must still undergo governmental reviews and is anticipated to be completed later this fall.

Information obtained from the plan includes the continued uninterrupted operations at 11 hospitals, retention of the current workforce of more than 3,000 health care professionals, expanded charity care for uninsured and underinsured populations, growth and preservation of rural health care, strategic capital investment through 2029 of outpatient expansions, facility upgrades, and new technology, new services, and a new drug pricing program.

“This is about the future of health care in rural America,” Harrison added. “We are building a system that is financially sustainable, community-aligned, and prepared to meet the evolving needs of patients.”

Changes at the Kentucky River Medical Center are expected soon after Quorum Health implements the agreement, following pending reviews.