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Published on September 12, 2013

Paynesville Area Health Care System to join CentraCare Health

The boards of directors of the Paynesville Area Health Care System (PAHCS) and CentraCare Health (CCH) have agreed that PAHCS will affiliate with CentraCare, effective Oct. 1, 2013.

“It has been just over a year since we announced a potential affiliation and we have now reached an important milestone,” stated PAHCS CEO Dennis Miley. “The affiliation with CentraCare Health is aimed at keeping local services local and positioning ourselves for growth and stability in a changing health care environment.  We are excited to work with an organization that is so closely aligned to our mission and vision.”

Paynesville Area Health Care System Board Chair, Bob Brauchler, stated that “We are extremely happy to become a part of CentraCare Health. This partnership will continue to provide high-quality care to the communities we serve. CentraCare shares our focus on patient safety and quality and is committed to helping us expand our programs and services.”

“PAHCS is an ideal partner,” said Terry Pladson, MD, CentraCare’s chief executive officer. “This affiliation will ensure the continued availability of quality health care for residents of all of the communities currently served by PAHCS.” 

Jim Davis, CentraCare’s vice president for corporate services, noted that “PAHCS brings an exceptional team of health care providers and support staff – and a long history of providing outstanding care – to the CentraCare family.”

Under the affiliation agreement, a new private, non-profit limited liability corporation – CentraCare Health – Paynesville, will lease the PAHCS facilities. 

CentraCare Health will engage consultants to conduct a community needs assessment and master facility plan, and will determine whether it is financially feasible to renovate the hospital and clinic in Paynesville or build a new facility. CCH has agreed to make substantial capital investments, including purchase of a new MRI machine and new ambulance, and to begin remodeling the Koronis Manor lobby and day room within six months.

CentraCare Health – Paynesville will be well positioned to meet the challenges of health care reform, decreasing reimbursements, increasing capital costs, rapidly evolving medical technology and expensive new mandates such as electronic medical records.

In addition to the hospital in Paynesville, PAHCS operates clinics in Belgrade, Cold Spring, Eden Valley, Richmond and Paynesville.

CentraCare Health encompasses St. Cloud Hospital, the hospitals, clinics, and senior housing facilities in Long Prairie, Melrose, Monticello and Sauk Centre, St. Benedict’s Senior Community in St. Cloud and Monticello, and numerous CentraCare Clinic sites around the region, as well as specialty services such as the CentraCare Kidney Program and the CentraCare Heart & Vascular Center.


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