Strengthening the commitment to provide quality healthcare services in South Lake County, Orlando Health and South Lake Memorial Hospital have signed an agreement that will soon make South Lake Hospital a controlled subsidiary of Orlando Health. Complete integration into the Orlando Health network will provide the scale necessary for South Lake Hospital's long-term relevance in today's rapidly changing healthcare environment.
"In 1995, Orlando Health assumed full management responsibility over the day-to-day operations of the hospital and 50 percent board representation," said Paul Rountree, who served as chairman of the South Lake Memorial Hospital Board of Directors when the agreement was consummated. "This agreement is the final phase of that very successful relationship."
"Over the years, Orlando Health has helped increase south Lake County residents' access to emergency medical care, world-class oncology services and state-of-the-art rehabilitation therapies," said David Strong, president and CEO, Orlando Health. "We're excited about building on that success by enhancing outpatient services for infants, children and women through our renowned Arnold Palmer Medical Center, and further expanding oncology care by developing a more comprehensive cancer center that is a satellite location of our Orlando Health UF Health Cancer Center."
The agreement coincides with South Lake Memorial Hospital's creation of the Live Well Foundation of South Lake County, a new grant-making organization formed to help fund healthcare services in the south Lake community. Orlando Health will provide initial funding of $128 million to the new foundation after it is granted 501(c)(3) status, which is expected in a few months. South Lake Hospital will become a controlled subsidiary of Orlando Health upon the transfer of those funds, and South Lake Memorial Hospital will relinquish its board seats on the South Lake Hospital board.
"The new foundation will ensure that residents in Lake County will have access to quality health and wellness services close to home, now and well into the future," commented Dr. Kasey Kesselring, who will serve as chairman of the Live Well Foundation of South Lake. "All services and facilities funded by the Foundation are required to be in south Lake County, so we will work closely with Orlando Health and South Lake Hospital leadership to continue to grow strategically and efficiently to meet the community's healthcare needs."
South Lake Hospital will continue to have a significant impact on the south Lake County community. Revenues generated by the hospital will remain in and be reinvested into the community. In 2017, the hospital provided $40 million in value to the region; $5 million of that in the form of charity care. South Lake Hospital is the third largest employer in the county and the largest employer in south Lake County with 1,600 team members. In 2015, the hospital reported an overall financial impact to the community of $229 million.
"This agreement represents a defining moment in south Lake County healthcare," said John Moore, president, South Lake Hospital. "It allows us to strategically plan for the future with one of the top healthcare organizations in the region, while maintaining the culture of South Lake Hospital."
In conjunction with the agreement, Orlando Health has committed more than $99 million over five years for capital improvements throughout the Lake County region.