Hermann Area District Hospital Chooses Mercy for Management Agreement

April 27, 2023

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HERMANN, Mo. – The Hermann Area District Hospital (HADH) Board of Directors unanimously voted to finalize a five-year management agreement with Mercy. The agreement, which takes effect June 1, comes as rural hospitals across the United States face financial challenges and uncertain futures.

Mercy doctor's coat

“It is extremely challenging to operate small, independent rural hospitals,” said Dale Ridder, chair of HADH Board of Directors. “Hospitals like ours are closing across the state and country at an alarming rate. Our board had the vision and courage to act now to preserve vital health services in our community. Mercy is in the best position to help us continue providing care in Gasconade County now and in years to come.”

Under the agreement, Mercy will oversee management responsibilities for the hospital and its two clinics, one in Hermann and one in Montgomery City. Physicians, advanced practitioners and co-workers employed by the hospital and clinic will remain HADH employees. A Mercy administrator will be named and assigned to manage HADH and its clinics prior to June 1.

“Mercy has a long history of working to keep health care local and convenient for our patients,” said Eric Eoloff, Mercy Washington Hospital president. “We began working with Hermann Area District Hospital in 2014 under an affiliation agreement and have helped provide guidance on ways to try to improve costs and quality of care delivered in Gasconade County. With the new, more formal management agreement, we have a greater opportunity to leverage our Mercy resources and expertise in support of the community.”  

The board’s decision comes after longtime administrator Dan McKinney announced his plans to retire. 

“Dan has capably led our hospitals and clinics for 30 plus years,” Ridder said. “The board wishes to thank him for his leadership over the many years, especially through the COVID pandemic. We wish him well in retirement and hope he remains an active member of our community.”

Mercy owns and manages many critical access, rural hospitals across Missouri, Oklahoma and Arkansas. Since 2017, Mercy has managed Washington County Memorial Hospital in Potosi, Missouri, where the initial five-year year agreement was recently extended another five years with the community’s support. 

Mercy, one of the 20 largest U.S. health systems and named the top large system in the U.S. for excellent patient experience by NRC Health, serves millions annually with nationally recognized quality care and one of the nation’s largest Accountable Care Organizations. Mercy is a highly integrated, multi-state health care system including more than 40 acute care, managed and specialty (heart, children’s, orthopedic and rehab) hospitals, convenient and urgent care locations, imaging centers and pharmacies. Mercy has 900 physician practices and outpatient facilities, more than 4,000 physicians and advanced practitioners and more than 45,000 co-workers serving patients and families across Arkansas, Kansas, Missouri and Oklahoma. Mercy also has clinics, outpatient services and outreach ministries in Arkansas, Louisiana, Mississippi and Texas.