Abrom Kaplan Memorial Hospital, Lafayette General Reach Agreement

Abrom Kaplan Memorial Hospital (AKMH) and Lafayette General Health (LGH) have reached a long-term lease agreement, whereby LGH will assume expanded management and operational control of AKMH. Since 2002, LGH and AKMH have had a partial arrangement, with LGH providing only executive strategy, financial analysis and group purchasing.

LGH signed a multi-year lease of the hospital, its physical plant and equipment, effective June 1. An official ceremony will be slated in the fall, once ongoing renovations to the hospital are expected to be complete. In accordance with the wishes of the Abrom Kaplan family, the name of the facility will remain exactly as it has been since its founding in 1960.

This formalized long-term relationship between AKMH and LGH will be advantageous for the residents of Kaplan and all of Vermilion Parish. Both parties utilized consultants to develop the structure and specifics of the lease/management agreement. Details of the partnership have been worked on since June 2014.

Changes in the health care delivery system, budgetary constraints, the Affordable Care Act and other factors in the health care marketplace have made it increasingly difficult for stand-alone community hospitals to survive, much less succeed, in this quickly evolving industry. Although AKMH remained resilient amidst these changes, Lafayette General Health opens the door to a network of additional resources and advanced medical services that were previously only available at larger institutions.

AKMH realizes that as value-based reimbursement models continue to evolve, healthcare reimbursement in its current form and escalating costs will be even more challenging. This relationship will greatly position AKMH and LGH to provide high-quality, low-cost services to meet the “value” demands that governmental and commercial payors will expect from providers.

The goal of this relationship is to continue the prosperity of Abrom Kaplan Memorial Hospital, as well as introduce new opportunities for it to thrive in a very complex healthcare marketplace. Through this expanded relationship, LGH will provide resources, technology and clinical protocol alignment. This will enable AKMH to deliver care more efficiently and cost-effectively, leading to better patient outcomes, increased financial stability and long-term viability.

“Lafayette General Health brings opportunities to Kaplan that are not currently available,” stated AKMH CEO Bryce Quebodeaux. “The goal of this partnership is to ensure Vermilion Parish residents have access to great health care without leaving the Parish. Lafayette General Health can help our hospital continue to prosper.”

The AKMH Board of Commissioners for Vermilion Parish Hospital Service District 1 still owns the property and equipment of AKMH. Residents of Hospital Service District 1 pay additional taxes to support AKMH. This additional revenue has been integral to the facility in order to remain financially stable and a viable part of the community.

“The tax dollars raised to support Abrom Kaplan Memorial Hospital will remain exclusively for AKMH,” stated LGH President David L. Callecod, FACHE. “I want Kaplan residents to know their tax revenue will be used for the hospital. It will not be absorbed into our health system.

“It is our intention to fully integrate AKMH into our health system while making them an even stronger community hospital in Vermilion Parish.”