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photo by Steve VanGunda
Fordice Construction Company President Hunter Fordice speaks during Wednesday night’s Natchez Regional Medical Center public hearing at the Board of Supervisors building. Fordice questioned what, if anything, would be done about the money owed to his company by NRMC.
Officials explain selling as only option
Published Thursday, August 28, 2008
NATCHEZ — The answer is obvious for Natchez Regional Medical Center, officials say, but that doesn’t mean there aren’t more questions on the table.
It’s time to sell, NRMC CEO Scott Phillips said at a public hearing Wednesday night.
The Adams County Board of Supervisors had to host the hearing before they can vote to sell the county-owned hospital. Approximately 50 people attended the hearing, including citizens and county officials.
Due to mismanagement, a legal structure that prevents the hospital from the ability to borrow money, the competitive nature of multi-hospital systems and overstaffing, the hospital found itself in a financial rut.
Phillips said because the hospital is a stand alone hospital — not part of a large medical system — it has a hard time attracting physicians.
As a result, the hospital is understaffed with physicians and has wasted exorbitant amounts of money trying to recruit and retain doctors.
In the four months since Phillips came on board, the hospital has been trying to dig itself out of a massive hole.
“A lot of progress has been made,” Phillips said.
Physician and vendor contracts have been either renegotiated or canceled, the deficit has been brought down and facility improvements have begun.
“We’re not in crisis at this moment,” he said.
Now that the hospital has stopped its downward spiral, the board of supervisors had four choices on what to do with it — self-manage it, hire a management company, lease it or sell it.
Phillips said there were many benefits to sale.
A qualified buyer who purchased NRMC would invest millions of dollars in the facility inevitably causing growth, Phillips said.
The Rev. John Larson could attest to that, he said at Wednesday’s hearing.
Prior to moving to Natchez, he lived in Columbus, where a two-hospital system was in the exact same crisis as Regional.
The system was sold to a Baptist multi-hospital system and what happened next was amazing.
“It was a dramatic change,” he said. “The hospital came alive. It blossomed and is one of the best things that happened in (that) county.”
With growth comes more jobs and expansion of medical services, Phillips said.
Phillips estimated the hospital would sell for between $25 and $35 million.
Phillips said if the hospital hypothetically sold for $30 million, after paying off its debt, between $10 and $11 million would go into the county’s general fund.
“I don’t see any downside to Adams County to sell the hospital,” he said.
Hunter Fordice, president of Fordice Construction Company — one of the hospital’s vendors — was worried that he would not get his money owed to him.
He began construction work for the hospital in November but ceased work in February because he hadn’t been paid.
He said he is owed approximately $400,000.
“This will break me,” he said. “That’s hard to stomach right there.”
Phillips assured Fordice he will be paid. But first, a buyer for the hospital must be identified.
To sell the hospital supervisors must pass a resolution, then bidding and soliciting of buyers will begin.
Once buyers show interest, they’ll enter into a confidentiality agreement, which will allow them to review NRMC’s financials.
The hospital board and the supervisors will select the buyer and enter into a purchase contract with the company.
Only then, can the hospital go to bankruptcy court with purchase contract in hand, and file for bankruptcy.
Phillips said its key to have to contract because it proves to the court that the hospital will and can pay its debt.
After they file for bankruptcy, they will have an auction among the qualified buyers.
Phillips said if no one bids higher than the buyer they’re in a purchase contract with, the sale will be closed.
If another company bids higher and is accepted, the hospital will reimburse the first contracted buyer.
Phillips said he hopes to conclude bankruptcy proceedings by the end of October.
Fordice was still concerned about getting paid.
Phillips said that usually under normal bankruptcy standards, it allows a business to be debt-free, but not in this case.
“We’re pretty confident we’re going to pay back vendors 100 cents on the dollar,” Phillips said. “We intend to honor all our debts.”
Comments
Posted by destiny (anonymous) on August 28, 2008 at 5:17 a.m. (Suggest removal)
My goodness!!! Fordice worked for three months without any pay??? How was he paying his employees??? I would have figured out after my first employee's pay period that I wasn't going to be reimbursed. Surely all his employees were not left holding an empty bag. I hope not!!! Get a laywer and put a lien against the hospital, would be my advice.
Posted by SayItRight (anonymous) on August 28, 2008 at 7:55 a.m. (Suggest removal)
If he ever does get paid it appears that Mr. Fordice is going to have to wait quite some time. That could be tragic for his business. How irresponsible to be spending that kind of money when they knew they wouldn't have it to pay.
Posted by John (anonymous) on August 28, 2008 at 8:56 a.m. (Suggest removal)
It was explained last night that at the time of filing for bankruptsy, Fordice and others will be paid in full. The bankruptsy Chapter 9 process is designed to attract buyers and when one agrees, proceeds of the sale will pay off Fordice and others. They hope to attract not-for-profit buyers with deep pockets and deep ethical standards. (ie one of the hospital groups owned by a religious organization like 2 big ones in LA or Baptist or St. Dominic.
Posted by JeffNatchez (anonymous) on August 28, 2008 at 10:04 a.m. (Suggest removal)
Aug. 28 1963 - Dr. Martin Luther King Jr. gives "I have a dream speech" - Little mention in the Democrat
Feb. 26 1967 - Wharlest Jackson killed in car bombing - Little mention in the Democrat
Aug. 28, 2008 - First black nominated to be president of the United States - Little mention in The Democrat
People say times have changed. But when they look back in the annals of history - like The Natchez Democrat - I hope that they will see the newspaper for what it was and still is ... denying history doesn't mean it never happened. Thank God for other news outlets that help tell the story.
With so many Natchezians at the convention its no wonder they didn't send a reporter to Denver - but then again that would be embracing history - not turning its back on it.
We have come a long way - but as The Democrat has always pointed out - we still have a long way to go.
Posted by Hardcorps (anonymous) on August 28, 2008 at 10:17 a.m. (Suggest removal)
jeffnatchez if you will look again there are numerous blacks mentioned in the ND daily. Just today there was kelvin and kendrick. Look over on about page 3. There should be several there. Whachu fussin' 'bout?
Posted by jak120 (anonymous) on August 28, 2008 at 10:48 a.m. (Suggest removal)
jeffnatchez, you're out of your mind.
Posted by cynthiafleming (anonymous) on August 28, 2008 at 11:04 a.m. (Suggest removal)
JeffNatchez, I understand you're wanting to make sure that your point is made but please, send a letter to the editor and don't blog your opinion in an area that has NOTHING to do with the point that you are trying to make. I think you will be much better served if you wrote an article in the Opinion section or as a Letter to the Editor. And PLEASE, have the nerve to give your name. If you belive it, lay claim to it and don't be ashamed to put your full name to it.
Posted by redusmfan (anonymous) on August 28, 2008 at 12:25 p.m. (Suggest removal)
I hope Mr. Fordice will buy some better shirts with the money he gets from NRMC..Please!!!
Mr. Fordice, the 70's called and they want their shirt back.....please give it to them......lol....
Destiny, it is very hard to place a lein against a public owned institution which NRMC is. I am in construction and I can tell you that his lawyer is probably working on it daily, But he would be better off to sale the debt that is owed by NRMC to a company, similar to the J.G.Wentworth people and take a loss on it. He would only get about 80% of what is owed. He can go to the bank and borrow against his accounts recievable up to 65% if he had a contract, but he will eventually have to settle for less than 100% of his money either way.
Gambling has been legal in Mississippi ever since the first lump-sum contract was signed by a contractor and the first farmer planted a crop for harvest for profit.
Casinos just bring gambling to the general public.
Posted by mike8427 (anonymous) on August 28, 2008 at 4:29 p.m. (Suggest removal)
redusmfan, wouldn't the lien be useless anyway with bankruptcy procedings underway? I guess it depends on which bankruptcy they declare and I am still unclear which way the hospital is proceeding. I have read so many different stories now.
Posted by lookingout (anonymous) on August 28, 2008 at 8:58 p.m. (Suggest removal)
Redusmfan he can't afford any new shirts he is owed 400,000.00 ......
Posted by frogprincenessntz (anonymous) on August 29, 2008 at 2:43 a.m. (Suggest removal)
I personally see nothing wrong with his shirt, but then again I am not some red dusty man as your name suggests.
Posted by natchezfan (anonymous) on August 31, 2008 at 4:37 p.m. (Suggest removal)
I wonder how many more people that live or work in this community have unpaid bills from Natchez Regional? It doesn't seem right that Scott Phillips company's bills are paid but the local businesses are expected to wait almost a year to be told "We're pretty confident we're going to pay back vendors." Pretty Confident means there is no guarantee the money owed will ever be paid. Two questions come to mind: Isn’t Mr. Phillips a vendor & isn't he getting his payment NOW? I hope this matter is resolved fairly for all and my heart goes out to Mr. Fordice and anyone else who did not get their money upfront like Mr. Phillips has managed to do.
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