photo by: LMH Health

LMH Health, 325 Maine St., is pictured in May 2021.

As Lawrence likely becomes a potential landing spot for more hospital companies, LMH Health is now ready to discuss a partnership with one of the region’s biggest and most familiar names: the University of Kansas Health System.

LMH Health on Wednesday afternoon announced that it had agreed to begin exclusive discussions with the KU health system about becoming a formal partner of Lawrence’s nonprofit hospital. The agreement could lead to new services in oncology, cardiology and other advanced practices being offered in Lawrence thanks to the expertise of the KU health system, which is generally considered the largest in the region and is connected to KU’s School of Medicine in Kansas City, Kan.

What a partnership isn’t expected to lead to is a change in control of LMH Health. Leaders at LMH Health were emphatic in stating that no partnership would lead to a sale of Lawrence Memorial Hospital or would give the KU health system any control over the governance or operations of the local hospital.

“No. 1, we are not for sale,” said Sheryle D’Amico, vice president of physician services and the lead negotiator for LMH in the partnership discussions. “We value our independence.”

But hospital leaders also said they know that area residents can benefit from having a partnership with a large, tertiary hospital that can perform complex procedures that a hospital the size of LMH feasibly can’t offer.

After more than 25 meetings with local physicians and other key stakeholders, the idea of working with the University of Kansas Health System emerged as the “common denominator” in many of those discussions, said Russ Johnson, president and CEO of LMH Health.

“We heard very clearly that we want to be an independent hospital, but we equally heard that we want to be the best hospital,” Johnson said of the internal discussions that have been occurring for nearly two years.

What a partnership specifically would look like isn’t yet known. Wednesday’s announcement merely is a public acknowledgement that the two sides are coming together to discuss a partnership.

Several areas of medical practice that could see additional services or collaboration, however, have emerged. Those include oncology and other cancer care, cardiology and heart treatment, vascular surgery, and some specialty mother-baby services.

Improvements could come in a couple of different forms, LMH leaders said. In some instances, it may be that LMH simply is able to start performing certain procedures at LMH with the assistance of KU health system resources. For example, while it won’t be likely that LMH would start performing heart bypass surgery at LMH, it might be able to start performing other types of bypass surgery, such as when a clot develops in an leg or an arm. Currently that type of surgery is not often performed at LMH.

In other instances, the surgery or procedure may need to happen at the KU hospital, but because of the partnership, it would be much more likely that most of the follow-up care for the surgery could happen at LMH, reducing the amount of time area residents spend traveling to Kansas City for care.

Johnson said the possibilities ultimately would be determined by getting doctors and other care providers from the two hospitals together. They will form relationships and come up with possibilities that aren’t currently under consideration now.

Johnson said the timing for the deal was right.

“What I have felt in this pandemic is a real affirmation of this idea that health care is at its best when it is collaborative,” he said.

The discussion, however, about creating a “strategic clinical relationship” with a large partner began at LMH long before the pandemic. While creating more patient care options has been a driving force, creating a strategy to fend off future health care competition in the Lawrence market also has been an important consideration.

On that front, a partnership with the KU health system likely would remove one of the largest competitive threats, given the strength of the KU brand name in Lawrence. While the threat of a entity like KU health system opening a full-fledged hospital in Lawrence has been viewed as remote, there have been concerns about KU health or other entities opening outpatient clinics or other specialty providers in the market. KU health already has a sports medicine practice in Lawrence.

Johnson confirmed that any partnership between LMH and KU would create a situation where LMH and KU wouldn’t be competing head-to-head in the Lawrence market.

“We have said for awhile that you can’t be partners and competitors at the same time directly in our community,” Johnson said.

Whether a partnership would do anything to dissuade others — think Topeka-based Stormont Vail or regional player Advent Health — from expanding into the Lawrence market is unknown.

“It is still possible to see movement with competition,” Johnson said. “I would expect that is still likely to continue. But I would hope that a partnership done well makes it even harder for someone to come in here and skim the cream from the community.”

A timeline for a partnership to be completed hasn’t been set. D’Amico said she’s characterizing the discussions as a “slow walk,” and hospital leaders have said they certainly believe the discussion will take at least several months to complete.

“But this is not lighthearted,” Johnson said. “We are not just saying we thought we would try this out. The two parties are pretty clear with each other and very much want a relationship to come together.”

Any partnership agreement ultimately would need to be approved by the LMH Board of Trustees, which governs the hospital and is appointed by the Lawrence City Commission. Hospital leaders have committed to a “transparent” process that will include frequent public updates.

Johnson said there are no known financial implications for LMH or the KU health systems at this point. For example, the early discussions have not involved any talk of LMH having to pay a partnership fee to KU health or vice versa.

Johnson said current discussions also haven’t contemplated a name change for the hospital.

“We certainly are not looking to be the University of Kansas Health System Lawrence Campus,” Johnson said. “That’s not in the cards.”

Bob Page, president and CEO of the University of Kansas Health System, said he’s looking forward to working with LMH Health on a partnership.

“As a resource for the region and part of the state’s only academic health system, we are honored to have been asked into this conversation,” Page said via a written statement. “We look forward to more discussions about ways we can help LMH Health provide more high quality, specialty care services in Lawrence and the surrounding community.”

While based in Kansas City, the KU health system has locations through the state, including in Topeka, Great Bend and Hays, although it was announced this spring that the Hays hospital is ending its partnership with the KU health system. Most often the KU health system has either owned or had a formal role in the governance or operations of the facilities it has partnered with.

Johnson addressed potential concerns that a partnership with the KU health system could be a “slippery slope” that leads to the KU health system ultimately trying to take control of LMH.

“I understand the notion of a slippery slope, but better than ever I understand the commitment to the notion of independence. That is so important here. While we see this partnership as desirable, it is not required,” he said.

D’Amico, who will be leading the talks that are expected to begin in earnest in the coming days, said the discussions would have important implications for Lawrence for a long time to come.

“Our focus is on how can we expand and improve on what we bring to this community,” she said. “For me, it is about in 10, 15, 20 years, that our community continues to have access to great care. It is our job to do that work now so that in the future, we are a strong, independent hospital that can provide that care.”