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NRMC to file suit against management group
Published Thursday, March 5, 2009
NATCHEZ — Natchez Regional Medical Center is planning to file suit against its former management group.
Hospital Attorney Walter Brown said while the hospital has not formally filed suit against Quorum Health Resources, once filed the suit will seek damages for what Brown called “mismanagement” of the facility.
Since the suit has not been filed yet, and the litigation strategy is still in the works, Brown could not put a dollar amount on the damages the facility will seek.
While QHR managed the hospital from 1992 until 2008, their contract was scheduled to have them managing the hospital through 2009.
And since QHR is no longer running the facility, they’ve filed their own suit, Brown said.
In early 2008 the hospital board voted to terminate QHR’s contract, but the group did not leave the facility for months.
So, the hospital board ceased all payments to the group.
Brown said QHR is suing the hospital for non-payment and breach of contract.
QHR is seeking approximately $260,000 in missed payments.
And while QHR representatives would not comment on the suit, hospital CEO Scott Phillips said he’s confident the hospital has a solid case against their former management company.
“We’ve definitely got a legitimate claim,” Phillips said.
As evidence of that, Phillips said the hospital has been financially righted.
However the hospital recently announced approximately 12 layoffs, which were always a possibility, and other cost cutting measures due to low patient count in the last quarter of 2008.
But since that time the census is on the way back up.
Phillips said the hospital is now in the best financial shape it has been in for at least two years.
“This facility has been turned around and it was done with the same board (QHR) had,” he said. “That makes the defense of their suit more difficult.”
Brown said as of now there is no timeline to start the suit.
“It’s really a work in progress,” he said.
Brown said it could be up to six months before any formal litigation begins.
Comments
Posted by natashakubelikov (anonymous) on March 5, 2009 at 1:02 a.m. (Suggest removal)
Wonder when the hatchet man is going to leave,when the money runs out??That,s what the CEO,s usually do.
Posted by tigerfan (anonymous) on March 5, 2009 at 3:34 a.m. (Suggest removal)
They should try to get some of the money back from the CEO. He haven't completed his job. But takes a fat check home every month.
Posted by LOVESNATCHEZ (anonymous) on March 5, 2009 at 7:32 a.m. (Suggest removal)
IT'S ABOUT TIME!!!!!!!!! Let's hold QUOROM ACCOUNTABLE. They are the ones who "cooked the books" to show a profit when actually there was a huge LOSS.
Posted by itsmemame (anonymous) on March 5, 2009 at 8:19 a.m. (Suggest removal)
A kid could have seen "blood sucker" written all over Quorum from the git go! We, as employees, saw what was happening early on in their tenure as so called managers. It is sad that the Board of Supervisors couldn't... or wouldn't. I can't help it, but, I have to say it, "I TOLD YOU SO!!!"
Posted by reneef (anonymous) on March 5, 2009 at 6:29 p.m. (Suggest removal)
Great post Krogers.
It is nice to see people making positive comments instead of complaints.
I hope Mr. Brown is successful with the suit.
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