June 2009

Nebraska Boards Approve New MBO Structure

The boards of directors of CHI’s ministries in Nebraska voted to create a common parent organization, forming the second largest health care system in the state. Good Samaritan Health Systems, Kearney; Saint Elizabeth Health Systems, Lincoln; Saint Francis Medical Center, Grand Island; and St. Mary’s Community Hospital, Nebraska City, will report to a joint, statewide board in the new governance structure and the four ministries will become a single MBO. Although this new organization will have its own board, each ministry will also keep a local governing board and each ministry will also continue to have a strong local CEO. The new structure will be effective July 1.

For nearly two years, representatives from the four Nebraska ministries have been meeting to identify ways to work more closely together. Joining forces as one MBO will provide greater negotiating power with business partners, payers and legislators. The change will also enable the sharing of best practices and service line expertise, as well as the ability to care for more patients while reducing costs for those patients.