Cancer and Medical Center Updates from the CEO

Nov 14, 2019 /

Topic:

Much information is circulating regarding Texas Oncology and their recent decision to cease their services in Uvalde. UMH has had a long standing relationship with Texas Oncology providing chemotherapy services that has served both parties and the community very well. Upon recent renewal negotiations, mutually agreeable terms on the space occupied by Texas Oncology were not met. I want to provide some brief details on events leading up to Texas Oncology’s decision not to renew their lease with Uvalde Memorial Hospital, at Kate Marmion Regional Medical Center:

  • AOR of Texas Management, LLC (Texas Oncology) has leased space from UMH since October 1, 2011. Their lease was renewed on November 1, 2014 for five years, through October 31, 2019.
  • Federal Law requires hospitals, including UMH, to obtain and maintain Fair Market Value (FMV) for all leased space to healthcare providers. The existing lease agreement with Texas Oncology and UMH outlined the terms of the requirement for a FMV assessment. Through legal counsel, UMH engaged a firm to conduct this analysis in preparation for lease renewal.
  • In the new proposed five year agreement, to be effective November 1, 2019 :
    • UMH shared results of the FMV assessment, which Texas Oncology disputed. UMH offered that

      Texas Oncology could provide their own FMV analysis for consideration; Texas Oncology did and

      UMH accepted it.

    • UMH asked for Texas Oncology’s continued commitment to providing care 5 days per week, and

      Texas Oncology declined.

    • UMH offered to remove the 5 days per week requirement and instead implement a year-to-year lease,

      and requested Texas Oncology provide data to show they were meeting the needs of our service area;

      Texas Oncology declined.

    • UMH received notice of non-renewal from Texas Oncology on October 29, 2019.
    • Out of respect for the relationship between Texas Oncology and their physicians, employees, and

      patients, UMH did not issue public notice immediately upon non-renewal.

      Since receiving notice from Texas Oncology of non-renewal, UMH has initiated discussions with representatives of University Health System and Clear Springs Center for Cancer Care to explore opportunities and potential partnerships to offer chemotherapy services in Uvalde. UMH also immediately began recruitment efforts for a qualified oncologist candidate. UMH is committed to providing oncology services to our community at Kate Marmion Regional Cancer Medical Center and we will find the right fit to ensure we can fulfill our mission, “To Promote The Healing Of Those We Serve By Providing Compassionate High-Quality Health Care.”

      Respectfully,

      Thomas J. Nordwick, Chief Executive Officer


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