Skaggs board unanimously approves Cox partnership

By a vote of 98-0, the Skaggs Regional Medical Center Board of Trustees has unanimously approved the Branson hospital board of directors' recommendation for the health system to form a financial partnership with CoxHealth of Springfield. The agreement is expected to be finalized by Dec. 31.

Under the agreement, Skaggs will keep its name, board of directors, current employees, management and medical staff, but it becomes a subsidiary of CoxHealth. The Springfield health system will assume the responsibilities previously held by the Skaggs Board of Trustees - which will dissolve - and the partnership unifies the organizations for purchasing, contracting and other business matters. Additionally, the CoxHealth board will have representation on the Skaggs Board of Directors, and vice versa, according to a news release.

“The Skaggs Board of Directors is pleased that the board of trustees recognizes the advantages that come from collaboration with CoxHealth,” Skaggs Board of Directors Chairman David Smith said in the release. “The board’s growth strategy focuses on developing necessary components and relationships, resulting in coordinated care and reduced cost.  

"We are certain CoxHealth is the right partner to help maintain and grow health care for our area residents.”

Skaggs scheduled a news conference this morning announcing the confirmation of the partnership.

The Skaggs Board of Directors signed a letter of intent to form the partnership with CoxHealth in late June.

Skaggs' search for a strategic partner began in late January, after years of operating losses, including a $1.9 million operating loss in fiscal 2011. Brentwood, Tenn.-based LifePoint Hospitals had also been considered as a finalist.