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NRMC not alone in troubles

Other hospitals run by Quorum have faced similar circumstances

Published Thursday, March 20, 2008

NATCHEZ — Many of the problems facing Natchez Regional Medical Center are similar to those seen in other Quorum-run hospitals around the country.

Quorum Health Resources was hired by the hospital in 1992; in 2004 their contract was extended to 2009.

But recently, as the hospital faces serious short-term financial problems and an uncertain long-term future, board members have called for a cancellation of Quorum’s contract.

At Hale Hospital in Haverhill, Mass., city officials sued Quorum and won a $2.8 million settlement.

Hale, a city-owned hospital, alleged Quorum significantly overstated financial statements and omitted losses in financial records.

Haverhill’s City Council President and former city attorney Michael Hart said Quorum did not make the city council fully aware of the hospital’s financial problems and the city had no opportunity to correct them.

Similarly Quorum’s interim CFO at, Natchez Regional, Joe Amato recently said the hospital’s 2007 financial statements would be restated and show a loss, not a profit as recently reported.

Amato said the numbers, to be restated, were based on what former CFO Mike Anderson thought would be higher reimbursement rates to the hospital.

Anderson was terminated by Quorum less than two months ago.

Even though Hale won its suit against Quorum, the hospital was still forced to close.

The hospital was sold at a greatly reduced price and the new buyer did not assume the hospital’s $30 million debt.

Siloam Springs Memorial Hospital, in Arkansas, also broke its contract with Quorum citing breach of contract.

Siloam’s current CEO Penny McClain said while Quorum was running the hospital, things seemed fine until a $2 million debt was revealed during a Medicare audit.

McClain said the hospital’s board was unaware the hospital was in financial troubles.

After Quorum was fired, McClain was hired as a consultant and has since been hired as CEO.

She said the hospital now averages a 7 percent profit margin.

At Virginia Regional Medical Center in Minnesota, the city council voted against the hospital board to stop the extension of Quorum’s contract.

Virginia’s mayor and former council member Steve Peterson said under Quorum’s direction VRMC was regularly operating in deficit.

Peterson also said the high cost of hiring Quorum made it too difficult to run the hospital efficiently.

Since parting ways with Quorum the hospital has hired its own administrators and Peterson said the hospital now generates profit or at least breaks even.

But not all the hospitals Quorum works with express dissatisfaction.

Susan Hassell, vice president of marketing and corporate communications for Quorum, said the company currently services 170 hospitals across the country with a nearly 90 percent annual renewal rate.

In the case of Hale Hospital, Hassell said the hospital was “provided with accurate and timely financial reporting in a healthcare market that was on a rapid decline due to market and regulatory changes.”

Hassell said Quorum was not found guilty of wrongdoing in the settlement.

At Siloam Springs, Hassell said irregularities in accounting were discovered before arbitration actually began and terminated the CFO. Before problems arose Quorum had managed the hospital for nearly 20 years.

And in Brookhaven, at Kings Daughter Medical Center, chairman of the hospital board Sherra Smith said the hospital has benefited from Quorum’s management.

Smith said Quorum’s ability to purchase discounted medical products has translated to great financial savings for the hospital.

Quorum has been managing KDMC for over 18 years Smith said.

“In that time we have been very pleased with them,” she said.

Comments

Posted by NtzMom55 (anonymous) on March 20, 2008 at 12:45 a.m. (Suggest removal)

Sounds like NRMC needs to go after former CFO Mike Anderson.

Posted by dangyankee (anonymous) on March 20, 2008 at 2:35 a.m. (Suggest removal)

Looks to me like America's chickens are coming home to roost, not just in Natchez, but all across this nation of ours. We've been voting ourselves "bread and circuses" in the form of diluted education and "free" (or almost free) healthcare, not to mention the occasional useless war, for about 50 years now.

Take education . . . I was in 8th grade when I read that the college freshman English text had been rewritten to an 8th grade level--largely to accommodate all the new and formerly educationally underprivileged college students matriculating at the time (early 1970s). Hmmm. . . we "dumb down" the curriculum so as to make college "possible" for a whole lot of kids that probably never should have been graduated from high school. Some of them manage to "earn" that shiny "piece of paper," despite being unable even to read proficiently, then they get jobs as teachers and start "educating" a whole new generation. Well, you can see where that leads. The next generation will be only "dumber."

Quorum's greenest crop of hospital administrators are likely products of the later stages of that dumbing-down process. Is it any wonder that they apparently cannot think particularly well? They've probably grown up in an era where it is more important to "pass tests" than actually to learn anything--and yes, it IS possible to become a great "test passer" without having learned even how to read beyond a 3rd-grade level. How do you think the teachers at, say, Natchez High, earned their positions?

Point is, we desperately need EDUCATED people to lead us out of the various morasses, healthcare and otherwise, in which we are currently swamped--but with rare exceptions, the presumably educated (piece of paper!) have been mostly poorly educated because their teachers were poorly educated, and that started half a century ago.

Ideas can be expressed and shared only through words, language--specifically, written language. We are fast becoming a preliterate culture (as evidenced by some posts here, actually)

How do we fix that? I don't know. It may not be possible. But, believe it or not, that is the root of NRMC's problems, more than anything else.

Posted by literate (anonymous) on March 20, 2008 at 5:20 a.m. (Suggest removal)

dangyankee Thank you. Everytime I post saying the exact same sentiments as you I get blasted by the "regular" bloggers. Certainly glad to know there's someone out there who sees the dumbing down as the epidemic it is. Too bad there's not a quick shot that can cure the disease.

Posted by niderbip (anonymous) on March 20, 2008 at 5:41 a.m. (Suggest removal)

quick shot: birth control.

Posted by sayitloud (anonymous) on March 20, 2008 at 6:59 a.m. (Suggest removal)

I'm telling yal this Quorum is KNOWN for bankrupting hospitals.

Posted by tcauthen (anonymous) on March 20, 2008 at 8:06 a.m. (Suggest removal)

dangyankee, right on! But you know the placement tests are "bais" lol

Posted by sayitloud (anonymous) on March 20, 2008 at 9:42 a.m. (Suggest removal)

I'm not a big believer in suing anybody but HEY...I say we also sue these Quorum bast---'s for what they have done to Natchez Regional.

Posted by redusmfan (anonymous) on March 20, 2008 at 10:02 a.m. (Suggest removal)

Well said Yankee. I agree.

Posted by Swapmeet (anonymous) on March 20, 2008 at 10:45 a.m. (Suggest removal)

dangyankee,

I haven't lived here long so I don't have a dog in this fight. I am also white. I say this so you can place my comments in context. That being said: You proposed a great argument about the dumbing down of our country. It is so true that we have made it too easy to earn degrees in this country. I understand this because I am currently enrolled in a university's teacher education program. I see presentations by future educators, and they are not able to follow simple grammar rule (i.e. double negatives, subject-verb agreement, etc.). These people have great hearts and a love for children, but they need to be set aside and told that you must get a handle on this or you will pass this on to future generations. I understand where you are coming from. You have a valid argument. What hurts your argument is when you used Natchez High as an example of the teacher/student problem in this area. Now I understand that you were probably just using NHS as an example, but because of the racial division in this community, some people reading your post will probably assume that you had an ulterior motive in using NHS instead of one of the other schools. That means they will ignore all the other points in your comment that point to the root of the problem with this country and that is unfortunate. I know that people shouldn't misconstrue your comment that way, but it is what it is (a reality). I hope you don't take this as an attack on you comment because I am not that type of person. I enjoy stimulating dialogue that will lead to a greater understanding of an issue. I don't like being engaged in bitter, irrational arguments. I believe people should be able to have civilized conversations on points of dispute. Having said that, I hope you realize that I just don't want to see your good argument go to waste over misperceptions. If I wasted this forum's and your time, I apologize. I just see so many people on these forums get caught up in pettiness and they stop seeing the forest because of the trees. Thanks.

Posted by Swapmeet (anonymous) on March 20, 2008 at 10:55 a.m. (Suggest removal)

LOL. I should have previewed my comment before posting. I meant to say "not able to follow simple grammar rules". I said rule instead of rules. That could not have occurred at a more ironic place in my comment. LOL. Before any of you start worrying that I will be dumbing down your children as an educator, I do proof read my papers before submitting them for evaluation. I don't proof read my comments though. Maybe I should though. LOL. If you can't laugh at yourself then what can you laugh at, right? LOL.

Posted by triscuit (anonymous) on March 20, 2008 at 11:13 a.m. (Suggest removal)

I always enjoy the presentation of ideas by dangyankee, Swapmeet and literate, even when I don't agree with them. In the postings to this article, I am in 100 percent agreement with all of them.

I especially agree that teachers should use proper grammar, both in speech and in writing, so that all of our respective cultural communities in America will always be able to communicate with each other. Otherwise, there is only deterioration.

Posted by Krogers (anonymous) on March 20, 2008 at 12:02 p.m. (Suggest removal)

dangyankee- you make a good point

I have long said that many administrators, CEO's, CFO's, etc especially School System - State Univ. System included - are way overpaid for their capabilities. They are a product of an unchallenged system. Just look at Alcorn. Think about the university system of MS. It's lopsided and illogical to have two major and well funded campuses in North MS, and one in South MS. The Delta area schools are pitifully underfunded (Delta State and Valley State).
I think we should close down the Delta area schools (there are not really that far from Oxford and Starkville, just due West one hr drive) and more adequately fund Alcorn, and change Alcorn Administration to be more fairly desegregated, which means more whites. That would be great for Natchez!!

Quorum has made a mess for us, and by this article done so in other cities also. At least others took the initiative to ask for relief, due to incompetence and LIES!!

Misrepresentation of financial status is a BIG LIE, and it is easy to figure that a company in financial trouble will not be able to adequately fund it's operations.

I'm thankful to the Democrat for this article.

I still take issue with ND's name though, I don't give a hoot about ND's history, I think it's time for ND to change it's name and begin to give us fair and balanced reporting, not bias toward liberal thinking. In the past I have slammed ND for it's current name. Another commenter sent me a nasty email trying to chastize me for that, like I care what he thought. I think a modern newspaper's job is to objectively report the facts and provide a balance of opinion NOT slanting either left or right, in order to stimulate logical thinking, for the good of the community. In my opinion, economically speaking as well, it would behoove a paper to attempt to remain objective. It would probably even boost subscriptions.

Posted by Krogers (anonymous) on March 20, 2008 at 12:03 p.m. (Suggest removal)

Swapmeet -- you haven't lived here long so you don't understand-- there is no other public high school. All the private schools have good academic standing. But the public schools all have been receiving 2's and 3's out of a possible 5 rating for the past 4 years. So I don't think anyone took issue with dangyankee using NHS in his argument.

Posted by Krogers (anonymous) on March 20, 2008 at 12:11 p.m. (Suggest removal)

Swampmeet - your claim of racial division in this community-- I take issue with that

The majority of our community is not racist- please don't let the hype of a few cloud your perception of the majority good people here that DO love their neighbor.

Yet there are a few on either side that make noise about racism, the same is true in ANY community.

Welcome to Natchez, I hope you prosper here.

Posted by Krogers (anonymous) on March 20, 2008 at 12:21 p.m. (Suggest removal)

sayitloud- when I curse on this blog and use deleted letters ND will censure me, that's not fair!!!

Posted by Swapmeet (anonymous) on March 20, 2008 at 12:35 p.m. (Suggest removal)

Thanks Krogers for your kind words. I didn't mean to make a generalized statement about Natchez. I can see how it could have been misconstrued. I have been here for almost two years now and I have just heard so many bad things from both sides of the racial line that saddens me. I guess the vocal minority will always garner more attention than the silent majority. Forgive me if I offended you. Not my intention.

Posted by Swapmeet (anonymous) on March 20, 2008 at 1:04 p.m. (Suggest removal)

And Krogers: I have substituted in both NHS and the private schools and I don't believe there is such a difference in the academic challenge.

Posted by Swapmeet (anonymous) on March 20, 2008 at 1:17 p.m. (Suggest removal)

I need to clarify that last comment. I have seen instances personally in private schools where a student couldn't handle the work, had no parental involvement to correct the issue, they should definitely be flunked, but then they can pay for summer school and breezed through to the next grade level so they can pay that tuition for another year instead of going to another school if they are flunked. Sometimes academic success can be enhanced. That's all I'm saying. And dangyankee, if I started an issue for nothing then forgive me. Y'all can just remove all my comments for this particular discussion.

Posted by Gimmeabreak (anonymous) on March 20, 2008 at 1:48 p.m. (Suggest removal)

Public or Private schools make no difference. Education begins at home, if the parents don't care about homework, making sure their children go to school, etc.-then those students will probably do poorly. On the other hand, if the parents are involved, it is more likely that the child will do well. I have attended both and let me tell you-the cirriculum at ACCS was a joke-I made straight A's the whole time I was there without even trying. I then attended a public high school and was challenged there more than at the private school, those students were far more advanced than me and my private education. I dont mean to bash AC-this was 10 years ago-I am just speaking from my personal experience. One of the worst things from my childhood was bringing the schools together-everyone suffered. I feel that the "white flight" that followed is what brought the public school system down and it seems that it continues to be that way. I haven't lived in Natchez in quite some time, but I feel it is necessary to comment since this affected me greatly in my childhood. Take it for what its worth.

Posted by NtzMom55 (anonymous) on March 20, 2008 at 2:10 p.m. (Suggest removal)

dangyankee, ditto!!

Posted by whatever (anonymous) on March 20, 2008 at 3:06 p.m. (Suggest removal)

LMAO @ Krogers....you are so very correct about Alcorn. What I pay for my education there....I learned in Practical Nursing school......at a fraction of the cost!! What a shame it has been...a major waste of my time and money. All I can say is, thank God I have a good head on my shoulders and several years experience as a LPN.

Posted by sayitloud (anonymous) on March 20, 2008 at 3:52 p.m. (Suggest removal)

If this hospital is to survive, we need to start cleaning out and weeding out the board of the unsavories...you know? We need a fresh start and some men and women on this board that truly love that hospital and what it can do for us as citizens in Natchez and not just a platform to get up and rant and rave and go play golf.

Posted by dangyankee (anonymous) on March 20, 2008 at 9:34 p.m. (Suggest removal)

Swapmeet, I took no offense at all at your clearly well intended, and well thought-out, comment. In fact the same thought had briefly crossed my mind when I used NHS as an example, but I didn't see that I had much choice, given that Natchez has only one public high school, and, as someone above pointed out, its pitiable performance has been well documented lately. Fact is, if I lived virtually anywhere else, likely I could have used the local high school as an example with just as much validity, whether the student body be 100% white, 100% black, or 50/50 or any other mix. You are absolutely right, though, when you say that some people might see my use of NHS as a veiled "attack" solely because it is predominantly black.

Speaking of "racial division" here, that is a valid comment, too. BUT--and it took me a while to understand this--to call a community racially "divided" is not necessarily the same thing as calling it "racist." A born-and-bred Natchezian I met when I first arrived here told me that people here generally are not racist--but it was pretty widely believed, on both sides, that the races each would be better off if they didn't mix, that is, if they didn't live in the same neighborhoods or, presumably, go to the same schools or churches, etc. "Separate but equal," basically--or a sort of voluntary and happy self-segregation. From what I've seen of the person who told me that, I honestly believe that she is not "racist" in the usual sense of that term and, anyway, what she was describing was not all that different from social behavior anywhere else I've lived. Probably it is more obvious here only because there is so close to a racial balance in the area's population; when I first arrived, in fact, it was advertised as 50-50.

Yes, I've drifted far away from the subject of NRMC, and I apologize for that--and will now shut up for a while.

Posted by Swapmeet (anonymous) on March 20, 2008 at 10:34 p.m. (Suggest removal)

Thank you dangyankee for your kind comments. I guess I'm just not used to all this because I grew up most of my life in a different state where the public school system was all there was and it was a good school system. I developed some really friendships with blacks through sports and in the classroom. As a matter of fact, I will say that it immensely helped me be better prepared to interact the black community whenever I left high school and entered the "real world" (i.e. employment). Its a reality that the two cultures are different in many ways and it helped me to be better acquainted with that culture. I think some of the problem here is that many 18 year olds, black and white, have few if any relationships with people of the opposite race. I imagine it makes it very difficult in some cases whenever people first enter the work force and interact with people from a different culture for the first time. Kind of awkward in a way.

You are right dangyankee, I too have drifted from the subject. Or to put it in net slang: "I've hijacked this thread." LOL. I'll shut up for a while too (at least on this thread). ;)

Posted by vanluna (anonymous) on March 23, 2008 at 10:53 a.m. (Suggest removal)

I found this blog on Quorum and thougt it was worth a repost.
http://beverlykelley.typepad.com/my_webl...

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