HERMANN — With details yet to be worked out, Hermann hospital’s administration has been cleared to proceed with efforts to join other independent hospitals in negotiating better deals in securing payment from agencies such as Medicare and the purchase of pharmaceuticals.

Becoming part of what’s known as a Clinically Integrated Network was first raised during last month’s meeting of the Hermann Area District Hospital (HADH) Board of Directors. At last night’s board session, HADH Administrator Bill Hellebusch reported that a letter of agreement had been received by the hospital to join such a group. The board was supportive of joining a network, but was interested in receiving more information.

In an interview Tuesday, Hellebusch told the Gasconade County Republican that being part of a coalition of independent hospitals would help HADH obtain better deals in negotiations because the organization would allow the various hospitals to essentially combine their wealth to use as a negotiating tool. A group known as CIBOLO could be the parent agency to bring together several smaller hospitals such as HADH.

“The Hermann hospital is one of the independent hospitals in Missouri that is interested” in becoming part of a network, the administrator said.

“The board was supportive of us” moving forward, he added, and said he would continue to pursue aligning HADH with other hospitals that would be part of the group.

“We’re looking to go forward,” he said.

He explained such a move as putting HADH’s $34 to $35 million value together with the values of the other independent hospitals to reach “maybe $4 to $5 billion” in negotiating power. Hellebusch could have more information about this effort at the November board meeting.

Meanwhile, HADH could benefit from a federally funded program aimed at rural Missouri hospitals. The $200-million-a-year project would award money to meet a variety of needs of the hospitals. At issue is how the money would be distributed: Evenly divided among all or allocated on a more competitive basis to a fewer number of hospitals through an appropriation process.

Hellebusch said he favors the appropriation process, noting that $200 million dispersed among all hospitals would not amount to much to any one facility. Rather, an appropriation process would allow consideration of the hospitals that have larger needs.

The Missouri Hospital Association is heavily involved in helping craft the process for allocating the money and HADH has been working closely with the statewide organization on the project, he said.