PAHCS buys Lakeview Medical Clinic;
Dreyling to retire

This article submitted by Stephanie Everson on 8/12/97.

As of October 1, 1997, Dr. Roger Dreyling will conclude his medical practice at the Lakeview Medical Center, also signaling his retirement and the end of 30 years as a physician in the Paynesville area.

Last fall, Dreyling and the Paynesville Area Health Care System (PAHCS) administrator, William LaCroix, began discussing Dreyling's future plans and possible retirement. With the intent of making a smooth transition for Dreyling and his patients, they began discussion of terms and expectations of PAHCS's possible purchase of Dreyling's medical practice at the Lakeview Medical Center, which he began in 1995.

During a special meeting of the Paynesville Area Health Care System board last Wednesday, the final agreement was discussed and signed for PAHCS' purchase of various entities of Dreyling's medical practice.

For the sum of $250,000, PAHCS will purchase Dreyling's medical equipment to include X-ray and laboratory equipment and medical instruments. All patient charts and medical records, medical supplies, business office equipment, furniture, and supplies will also become the property of PAHCS. The agreement does not include the purchase of the Lakeview Medical Center building on Lake Ave., which PAHCS declined at the present time.

During the meeting of the PAHCS board, Dreyling read the letter he will send to his patients informing them of his decision. According to the purchase agreement, when his letter is sent around September 1, PAHCS will pay Dreyling the initial $100,000. The remainder will be paid in five equal installments over five years beginning September 1, 1998, which will also include accrued interest of 6.8 percent.

The purchase agreement includes a non-compete agreement which will go into effect for a period of one year. It states that Dreyling will not sell the Lakeview Medical Center building to any party intending to use it as a medical clinic. He will also not set up a medical practice within a 25-mile radius of Paynesville.

Because of the location of the Lakeview Medical Center building, PAHCS chose not to purchase it at this time. Dreyling told the board he desires to see the building used as a medical clinic, but after the one-year time restriction, he will give the right of first refusal to PAHCS as a courtesy.

Regarding the current employees of the Lakeview Medical Center, PAHCS agreed to hire two members of Dreyling's nursing staff. They also agreed to give preferential hiring treatment to one other Lakeview Medical Center employee when her position becomes available at PAHCS, if she chooses to apply at that time.

LaCroix stressed at the meeting of the PAHCS board that current patients of Dreyling have no obligation to continue their medical care at PAHCS, but he will send a letter to all those patients inviting them to do so if they choose. LaCroix also said PAHCS physicians will be able to absorb Dreyling's patient load, since at this time they aren't at maximum potential.

LaCroix said the purchased medical equipment and supplies could be used at the Richmond satellite clinic, since the equipment was purchased new, fairly recently, for the Lakeview Medical Center. LaCroix also mentioned that the medical equipment is state-of-the-art.

"This is certainly a big step in my life," Dreyling commented to the board. "I've spent a lot of sleepless nights."

He also mentioned he and his wife will continue to reside in the Paynesville area, and he wishes to continue his personal relationship with the staff of PAHCS. "I think you're fortunate in having a farsighted administrator and staff," he said.

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