Traverse City Record-Eagle

Region

July 18, 2010

Munson seeking feedback

Survey may help determine fate of Spectrum partnership

TRAVERSE CITY — Munson Healthcare is taking the collective pulse of hundreds of area residents, a move that could help decide the fate of its potential partnership with Spectrum Health.

Munson's corporate members, which include its Healthcare and Medical Center boards, its affiliate boards, and more than 200 other at-large members, are being surveyed this month by a Lansing-based communications firm.

Munson officials want to gauge how those people view a potential merger with Spectrum Health in Grand Rapids, and determine how well Munson is explaining its need for and goals of the partnership.

Munson also is surveying various community leaders who've participated in recent luncheon meetings with Munson Healthcare President and CEO Ed Ness. Around 450 individuals will take part in the survey, officials said.

"What we're interested in are the things that get to underlying questions that people may have," said Kathrine Garthe, a Munson vice president. "We wanted to have someone do a communications assessment, and not a poll."

Munson corporate member Lynne Moon, a Traverse City real estate agent, said she's encouraged by efforts to bolster discussion about the merger through steps like the survey and Ness luncheons.

"I think they've made a 360," Moon said. "They're letting the process flow and it's flowing nicely ... it no longer feels like a race to the finish."

The 18-question survey asks about challenges facing Munson to provide regional health care; whether members believe Munson can self-finance its growth; the system's "partnership" options; and how well Munson Healthcare communicates with its corporate members.

Individual responses will be confidential, but Munson will release a summary of survey results, officials said.

"A lot of the questions are pointing to communications — whether people understand the issues and whether everything is being communicated well," Munson spokesman Dale Killingbeck said. "It's part of the whole analyzing process."

Respondents also were asked to rate the importance of various factors that could be impacted by the merger, including maintaining local jobs, keeping local control over hospital operations, physician recruitment and local donations.

The Rossman Group, a communications and public relations firm in Lansing, is conducting the survey. Spectrum Health is not part of the effort, Garthe said.

Jack Smith, director of real estate for Oleson's Food Stores chain and a Munson corporate member, said Munson "is doing as good a job as can be expected" to explain reasons behind a possible Spectrum deal.

"I think the information is there," Smith said. "It's up to the members to learn it and understand it."

But Moon and Smith said they remain undecided on whether a Spectrum partnership is good for the community. Depending on what form of merger is proposed, Munson's corporate members would need a majority vote to approve any deal approved by the Munson Healthcare board.

"Not yet. There's still more information out there," Smith said when asked if he endorses a Spectrum partnership. "There are other alternatives out there besides Spectrum."

Others in the community remain firmly against a Spectrum deal. Harry "Scrub" Calcutt, president of Northwestern Bank in Traverse City, was among the proposal's early critics and warned it could have dire economic consequences for the area. Last week, Calcutt said he hasn't been persuaded otherwise.

"Nothing has transpired to change my opinion," Calcutt said. "There will be negative consequences should Munson be acquired by Spectrum."

Survey results will be among several pieces of information the Munson Healthcare board will review in coming weeks as it grinds toward a Spectrum decision.

The board also is reviewing a consultant's report on financial and operational projections surrounding the partnership, and will continue community luncheon sessions into August. There's still no formal date to reach a decision, officials said.

"As of right now, the board doesn't have a specific time line of when the process will be complete," Killingbeck said. "It's about providing the board the information they need to make the best decisions for the system and the community."

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