Full story not told at NRMC hearing

Published 12:07 am Wednesday, April 30, 2014

I attended the May 24 NRMC bankruptcy hearing, and was allowed to testify regarding the motion to waive the appointment of an outside patient care ombudsman. I am happy to report NRMC is getting a great value with the hire of Eileen Shaffer as its bankruptcy attorney. She put on a great case.

The only member of the Adams County Board of Supervisors there was Darryl Grennell.

He was the first witness called in the matter, and he testified that the supervisors appointed the NRMC trustees, and touted all of their qualifications for having been appointed.

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He also testified that the trustees made recommendations, but the supervisors were ultimately the decision makers concerning NRMC.

He was followed by Rev. White, chairman of the NRMC trustees.

Then came Charles Mock, chief financial officer of NRMC.

Donnie Rentfro, chief executive officer of NRMC, also testified, along with several members of the staff and other employees.

The final witness for NRMC was Scott Phillips, chief executive officer of Healthcare Management Partners.

HMP is the consulting firm that has been hired twice now to sell the hospital, and is now serving in the dual role of financial advisor to NRMC during the bankruptcy.

It is easy to see why people are so impressed with Phillips.

He is very smooth, and in the words of an old Rick Springfield song, has that “slick continental dude” look.

Most of the day’s testimony supported the theme that NRMC’s financial problems had not negatively affected patient care.

Phillips did say that when he arrived last year, NRMC’s management had “lost control” of the hospital’s billing.

Not a good reference for Mock, and that might have had something to do with the large amount of (Recovery Audit Contractor) claw backs NRMC suffered.

He was happy to report that they had now regained control of the billing.

Phillips also testified that appointing an ombudsman might serve to negatively impact the level of care at NRMC, given the complex nature of hospital operations. He reported some ombudsmen cost $100,000 per month.

Ironically, that is the amount his firm was reported to have been paid for its services, during their first stint at NRMC in 2008 and 2009.

Phillips also testified that in a recent case with a hospital in West Virginia that he was involved with, an ombudsman charged $460 per hour for his services.

Ironically, that is the hourly rate it has been reported that he is now charging NRMC for his role as financial adviser during the bankruptcy.

For me to be able to address the court to express my objection to the motion to waive the appointment of an ombudsman, I had to be sworn in as a witness, state the grounds for my objection and be subject to cross-examination by NRMC’s attorney, as well as the bankruptcy trustee.

I was nervous, so I am afraid I did not present my case in an eloquent manner.

I did point out that the now seemingly warm and fuzzy relationship between the supervisors and the NRMC trustees put forth in the days testimony did not square with the recent complaints by the supervisors that the trustees had been withholding vital information from them.

I also mentioned that Phillips had failed to mention in his testimony, that during his first stint at NRMC, he led a failed attempt to sell the hospital, during which he told us a sale was eminent, which was later found to be “misleading.”

I hesitated when I said misleading, wanting to say we were lied to, but thought better of it.

I also mentioned that NRMC had apparently received $9.79 million in 2013 from its judgment against Quorum, and was now in bankruptcy, and that money needed to be accounted for.

I implored the judge that he might be our last hope to shed some light on this matter.

Thankfully, neither attorney felt the need to cross-examine me.

The judge ruled whether or not this deserved investigation was outside the purview of the bankruptcy court, and he did not appoint an ombudsman, reserving the right to do so later, if it becomes necessary.

I can now lump bankruptcy court in there with City Hall and windmills, as things not to fight.

 

Chuck Fields

Adams County resident