Mayo takes legal action to stop Floyd County Medical Center cancer center bequest

PHOTO GALLERY: Stille Cancer Center renderings for Floyd County Medical Center

By Mary Pieper, Special to the Press

Floyd County Medical Center’s plan to establish a cancer treatment center with about $10 million in funds bequeathed to the hospital by a Nashua man has hit a roadblock in the form of legal objections by the Mayo Clinic.

The Rochester, Minnesota-based health care system claims the Charles City hospital can’t meet all the stipulations set forth in the will of Herman C. Stille, according to Chickasaw County Probate Court documents.

But the Floyd County Medical Center (FCMC) says Mayo is claiming conditions for its own receipt of the money that aren’t specified in the will.

A non-jury trial has been scheduled in Chickasaw County District Court for Feb. 15, 2023, where a judge could rule where the money will go – to a cancer center at the Floyd County Medical Center or for Alzheimer’s research through the Mayo Foundation.

Stille, who died in September 2020, stated in his will that he was leaving most of his estate to FCMC to be used “for the purpose of establishing a cancer center to serve local area residents if the funds available make such establishment possible.”

After several other smaller bequests were paid and land and other assets that had been owned by Stille was sold, there is about $10 million left for the major part of his gift.

“The treatment center must have an oncologist on staff, and must be adequate to include office space for oncologists, consultation rooms for patients, separate areas for administering radiation, chemotherapy and other cancer treatments, as well as a family gathering area,” according to the will.

The will states that if FCMC loses its independent status and becomes part of a major healthcare corporation, Stille’s bequest will go to the Mayo Foundation to be used for Alzheimer’s research. That is the only mention and stipulation in the will referring to the Mayo Foundation.

In March of this year, Ted Lovrien of Clarksville, who Stille’s will named as the executor of his estate, filed a petition in Chickasaw County Probate Court requesting a hearing to determine whether FCMC or Mayo should receive Stille’s bequest.

The petition states neither party could agree on whether the funds are a conditional gift that can only be used for a cancer center, and whether the list of items Stille included in his will for a cancer center are mandatory.

On May 17, Mayo filed its statement of position in the case.

FCMC “cannot satisfy certain of the mandatory elements of the cancer center that Mr. Stille specified in his will,” the court document states. “It cannot acquire a radiation treatment capability. It will not have an oncologist on-staff.”

Mayo’s statement says FCMC intends to use most of the Stille bequest “for purposes other than establishing a cancer center, which is prohibited by the will.”

“According to FCMC’s own budget projections, the vast majority of the square footage to be built or renovated is to house functions other than the cancer center. All told, less than $3.5 million of the total cost of the proposed construction and renovation appears to directly pertain to the cancer center. … The rest would go toward building and renovating areas in the FCMC facility that have no, or at best only a very tenuous, relationship to a cancer center, including parking, an entrance, lab space, a surgical center, and a gift shop, among others,” Mayo wrote.

Also, Stille “quite clearly was concerned about his estate being captured by some other health system that might acquire FCMC,” according to Mayo’s statement. “FCMS has represented that is it independent now. But it could be acquired or merge at any point in the future.”

On that same day, May 17, FCMC filed a request for distribution of estate assets, saying, “This matter is before the court because the Mayo Clinic, a contingent beneficiary of the estate, has opposed distribution of the estate’s assets to FCMC for the construction of a cancer treatment center in accordance with the terms of Mr. Stille’s will.

“FCMC, a proudly independent and community-based hospital, is now forced to expend time and funds defending against the large, out-of-state health system overstating its rights in the estate when it could be putting these funds to the uses intended by Mr. Stille. Such an attempt should be denied for the reasons set forth herein, and distribution of the Estate’s assets to FCMC approved by this Court,” the FCMC request states.

“FCMC intends to use the entirety of the estate to construct the FCMC Stille Cancer Center … in Charles City, Iowa” the document states. “FCMC’s proposal for the Stille Cancer Center is wholly consistent with Mr. Stille’s intent as expressed in the will.”

As far as spending Stille’s bequest money on spaces not specific to providing cancer care, Willis said FCMC already has these spaces but, “The current footprint of our existing hospital is very tight in its current space and will require expansion and reorganization to effectively launch and support the increased patient and service volume associated with the Stille Cancer Center.”

In January of this year, FCMC had entered its plan for a cancer center into the court record. Highlights of the plan, outlined in a letter from FCMC CEO Dawnett Willis to the executor and attorney for Stille’s estate, include:

• Contracting with the Mason City Oncology Practice Group to provide a board-certified oncologist and specialized oncology nurse practitioner to see patients at FCMC’s cancer center.

“…I am well-versed with this type of contractual arrangement and have seen this work very well and successfully in Pella, Iowa, with Iowa Mission Cancer and Blood Oncologist practice group and Pella Regional Health Center,” Willis stated in her letter.

• Partnering with Mercy One in Mason City for radiation treatment and possibly providing a courtesy van or other free transportation for patients and caregivers to get to Mason City and back for radiation treatments.

In her letter, Willis stated FCMC would need its own linear accelerator to provide radiation oncology treatment onsite, and the hospital is unlikely to receive approval for one from the Iowa State Health Facilities Council because there are already four linear accelerators within a 50-mile radius. She also noted that the application process is time-consuming and expensive.

• Remodeling current support areas to create a comprehensive cancer program.

This would include expanding or updating the  hospital’s imaging, lab and operating rooms, as well as its therapy areas; adding more parking; renovation of the pharmacy to meet compliance standards for mixing and administering cancer drugs; and creating a new kitchen and dining space to allow a space to educate patients about the importance of nutrition and healthy eating during their cancer treatment journey. The new gift shop will also sell items that benefit cancer patients, such as creams, lotions, scarves and wig supplies.

• Dedicated office space for oncologists; consultation, treatment and procedure rooms for patients; and a separate 7-bay infusion center for administering chemotherapy and other cancer treatments like immunotherapy, monoclonal antibodies, immune checkpoint inhibitors, hormone therapy, targeted therapy, and T-cell transfer therapy; plus two dedicated family gathering spaces.

“The space will be full of natural light due to an abundance of windows and glass to offer a comforting and healing space for our patients and their families,” Willis’ written statement said.

“We are confident in our position and remain committed to honoring Mr. Stille’s wishes of providing a state-of-the-art cancer center,” Willis recently told the Press.

She said it is commonplace nowadays for hospitals to have partnerships with other hospitals for specialists such as oncologists. She said FCMC already has similar arrangements with other facilities for specialists.

“They come here and they are credentialled here,” she said. “They are on staff, but they are not employed by us.”

Willis also said not every cancer patient needs radiation treatment, and she noted that FCMC has “a high-quality, board-certified surgeon who is competent in performing many cancer-related procedures that will benefit patients of the Stille Cancer Center. She has expressed a willingness to expand her practice and receive additional training to serve cancer patients.”

“Additionally, FCMC is committed to providing positions, such as a patient coordinator, chemotherapy-certified nurses, pharmacists, and chemotherapy-trained pharmacy technicians to ensure cancer patients receive exceptional care close to home,” Willis wrote.

A cancer center is something the Charles City community deserves and that Stille wanted, according to Willis, and without Stille’s gift, it would be “very difficult if not impossible.”

Lovrien’s initial request for a hearing has turned into the trial scheduled for February as the number of court documents filed by both sides continues to grow, and both sides are currently taking depositions and filing and answering disclosure requests.

“As I read Mr. Stille’s will, I could sense his passion for cancer care to be provided close to home,” Willis wrote in the letter to the executor and the executor’s attorney in March, which is part of the court documents on file in Chickasaw County District Court.

“We believe that the above plan and attached information shows that FCMC is ready and able to use Mr. Stille’s bequest as directed by the will and ask that the estate request and direct distribution of the residue of the estate to FCMC for use in accordance with the will and the attached information,” she stated.