Copley Hospital Provides Update on Key Strategic Issue

The Board and Administration would like to provide an update on a strategically significant issue for Copley Hospital (CH) that we are actively addressing: Supporting Lamoille Health Partners (LHP).

We have previously shared some information on this matter, as has the press through published articles. While media coverage provides awareness, our direct communications are more precise and comprehensive, given our involvement and understanding of the issues.

Lamoille Health Partners Update

At the end of November 2024, LHP reached out to Copley requesting our help and support with the dire financial crisis in which they had suddenly found themselves. Working together, we developed and signed a Memorandum of Understanding (MOU) in early December. We want to address the concerns and rumors that have surfaced in the meantime.

LHP is a Federally Qualified Health Center (FQHC), allowing it to receive additional financial support from state and federal sources. Similarly, Copley Hospital (CH) operates as a Critical Access Hospital (CAH) and benefits from federal funding. Preserving these designations is essential for both organizations.

In January 2025, we provided a $150,000 unrestricted cash grant to support them during this time. Currently, we are conducting a comprehensive 4-6 week assessment of LHP’s finances, technology, quality, operations, staffing, and services. This assessment will help inform long-term collaboration options, including the possibility of a merger.

It is important to clarify that the rumor suggesting CH is “taking over” LHP is false. Such an action would not be legal under federal FQHC regulations. Instead, we are exploring a potential merger in which a revised FQHC entity would encompass two distinct functions: a Hospital and Primary Care services. This structure would foster a collaborative, resource-sharing model, potentially integrating physicians, staff, and community boards.

The goal of this partnership is to enhance financial stability, streamline clinical and support services, reduce costs, and improve quality and access to care. Leadership roles would evolve over time with no anticipated layoffs. At this stage, CH is fully funding the necessary assessments and resources for a potential merger. While the process could begin immediately, realizing the full benefits could take one to three years.

As previously stated and agreed upon in the December 2024 MOU:

CH and LHP are deeply committed to serving the residents of Lamoille County and beyond. With shared patients and aligned missions, this collaboration presents a promising opportunity to enhance operations and financial outcomes. A closer partnership has the potential to deliver substantial benefits to patients, families, staff, providers, and nurses, while also strengthening efforts to secure Federal and State support for this new integrated care model.

To date, we have conducted nine formal meetings on this matter with Copley and LHP leadership at the table, along with numerous informal discussions. At this stage, we remain in the planning phase, carefully evaluating our options.

Summary and Next Steps

The Copley Board remains committed to thoughtful governance and careful stewardship of hospital operations, always prioritizing the best interests of both the institution and our community. As we continue to evaluate the recommendations from the Oliver Wyman report, we will consider any strategic partnerships that enhance efficiency and quality of care.

Addressing the immediate needs of LHP is our highest priority, as their continued viability is essential to the broader healthcare ecosystem of our region.

We appreciate the community’s understanding and patience as we navigate these complex and critical issues.

About Copley Hospital Copley is greater Lamoille County’s nonprofit community hospital. Copley’s core services include emergency services, diagnostic imaging, general surgery, orthopaedics, and women and children’s services. In addition, Copley provides a variety of specialty care, including cardiology, oncology, sleep and pulmonary medicine, neurology, and rehabilitation on its campus in Morrisville, Vermont. Copley has been named a Top 100 Critical Access Hospital and one of the Top 50 hospitals in New England based on patient satisfaction. For more information, visit www.copleyvt.org