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Hospital plan includes sale
Published Tuesday, May 13, 2008
NATCHEZ — On Monday afternoon the Natchez Regional Medical Center Board of Trustees voted to adopt a plan that essentially calls for the sale of the hospital.
And much of that plan centers on converting the hospital to a private corporation. The hospital is currently owned by Adams County.
That conversion legally mandates the sale of the hospital.
Several months ago the hospital’s realization of financial problems prompted board members to begin looking for a way to correct the hospital’s situation.
Hospital board attorney Walter Brown said the plan’s approval essentially asks the Adams County Board of Supervisors to begin the process that could lead to sale.
Scott Phillips, the hospital’s new CEO, developed the plan and it calls for several sweeping changes.
It includes reducing the size of the hospital’s employee force, declaring Chapter 9 bankruptcy and securing short-term financing to keep the hospital running.
Phillips said those steps should take place in the next two weeks.
Brown said he hopes to be able to meet with the supervisors within a week to get their approval to move forward on the procedures that would allow the sale of the hospital.
The supervisors essentially have the deciding vote to sell the hospital.
In the past, board of supervisors’ President Henry Watts, said he wanted the board of trustees to be in agreement on what to do with the hospital before the supervisors made any decisions on the hospital’s future.
Supervisor Mike Lazarus said he would likely vote in accordance with the hospital board.
“I have confidence in Phillips,” he said. “I think he know what he’s doing.”
But it appears the board has made a decision. Monday’s vote to adopt the restructuring plan was unanimous.
But Brown stressed the need for the two boards to work in unison.
“The two boards must absolutely be walking in lockstep,” he said. “We have an opportunity to do this in a positive way.”
Representatives from United Mississippi Bank and Concordia Bank and Trust were also at the meeting to hear the restructuring plan.
Brown said he believes the bankers are essentially waiting to see what direction the hospital will go in next before they commit to lending money.
The hospital needs an interim loan because, due to its county owned status, it’s limited in the way they can borrow money.
Phillips estimated the hospital needs between $2-3 million in interim funding for the restructuring period.
The hospital is currently losing between $250,000 – 300,000 per month, he said.
As a part of Phillips’ 90 to 180- day plan, he hopes to have the hospital in a position to generate an additional $5 million in profit each year.
While the hospital has readily discussed its plans for bankruptcy Phillips said that declaration won’t likely happen for at least four months.
However in the next 60 days Phillips said he plans to continue to work on the hospital’s package and begin the legal process to sell the hospital.
Phillips has recently said the hospital is not bankrupt but will use the Chapter 9 process as an opportunity to further restructure the hospital.
In addition to keeping creditors at bay and allowing the hospital to renegotiate contracts, bankruptcy has a major advantage for the hospital.
For the hospital to enter into bankruptcy it must first be able to present a plan to the courts that outlines their bankruptcy exit strategy also.
Once that plan is filed, the courts and potential buyers of the hospital will have a clear view of the hospital’s financial situation.
That, combined with a bankruptcy exit strategy, is more appealing to potential buyers, Phillips said.
The plan currently calls for the hospital’s sale during bankruptcy.
Brown said that type of sale assures a clean title on the hospital and assures creditors have been paid.
“It’s preferable for the buyer,” he said.
Not only is it preferable for the buyer but it could also be historic.
Brown said he is unaware of any such similar hospital sales on record.
Comments
Posted by seeemeeego (anonymous) on May 12, 2008 at 11:55 p.m. (Suggest removal)
And you think your bill is high now? Wait until you get a bill from a for-profit hospital.
Come on over to Southwest Regional Medical Center in McComb. We have a great hospital, and our supervisors didn't sell us down the river by bringing in a Quorum-type company to run our hospital into the ground.
Posted by gemccull (Gary McCullars) on May 13, 2008 at 6:25 a.m. (Suggest removal)
I assume that the hospital board and the CEO shared some details of the restructure plan with the bankers. What did the hospital tell the bankers to give them a warm, fuzzy feeling about a "temporary" loan when the hospital is currently losing $3 to $3.6 million a year?
It is a shame that the same detail was not a part of this article.
Posted by muleman (anonymous) on May 13, 2008 at 7:37 a.m. (Suggest removal)
The amount of money you would have to pay to satisfy a for-profit hospital bill or a not-for-profit hospital bill would be about the same. If for-profits charged more they could not stay in business. The deal is they run their business like a business and not as a patronage center.
As for Southwest in McComb I have one answer to that idea and it is, Norman Price. He is intelligent and very dedicated to Southwest Mississippi Health Systems and SWRMC is lucky to have him.
Posted by lsumom (anonymous) on May 13, 2008 at 8:16 a.m. (Suggest removal)
So the hospital board and the board of supervisors are all in agreement to sell the hospital. What do they plan to do about the people who have been there 20 years give or take a few and are close to retiring with PERS? I guess nothing. This hospital has been screwing the staff for years and it started with Quorum. Now this Mr. Phillips is continuing the tradition. Lets just screw the little people. And once again the staff knows nothing about this until it comes out in the Democrat. As for the 250-300,00 being lost each month, lets take Dr. B.Tillman, Dr. Wolfe, Dr. Anderson, Dr. Han, Dr.Verucchi, Dr. Carey, Dr. Daigle off the monthly payroll and see how much money we are losing then. And as for the layoffs, once again let's get rid of the regular hardworking people and keep the management people where it is already overstaffed. The board of supervisors should be ashamed of themselves for selling out the employees. They are supposed to be speaking for the citizens but obviously they are not listening.
Posted by priya (anonymous) on May 13, 2008 at 8:27 a.m. (Suggest removal)
I think the hospital would make a nice retirement home for the garden club. A wonderful nursing home so the elderly can remember who takes care of them when their family doesnt want too. Or a veteran's hospital!?!
Posted by destiny (anonymous) on May 13, 2008 at 9:01 a.m. (Suggest removal)
I vote for the vets. We're gonna have a bunch of them when this is all over. They need care without having to drive hours getting it.
Posted by priya (anonymous) on May 13, 2008 at 9:39 a.m. (Suggest removal)
I agree destiny plus the military pays civilians alot better than probably the hospital does or a nursing home. veterans hospital has better staffing because they care about the veterans and the staff members.
Posted by frogprincenessntz (anonymous) on May 13, 2008 at 9:43 a.m. (Suggest removal)
Priya, I do not think you understand a veteran's hospital. It does not offer any services to the public, only to veterans and limited services to some connected to the veterans. It is not for just anyone, so if NRMC became a veterans hospital, most of the residents in Adams County would not be able to use it. The veteran's hospital in Jackson is staffed primarily by the interns studying at UMC, so they are not coming down here to run a hospital. They stay close to where they have the best pick of personnel, but on short term basis.
PERS should never have been started. All of the people should have held Congress's feet to the fire and told them years ago to stop paying out of the system ANYONE WHO DID NOT PAY INTO THE SYSTEM. They put the GIVE AWAY PROGRAMS under the Social Security System and that is where the problem began. People opted into PERS because of those problems, thinking they would get a better deal, but they should have realised that they were putting their eggs into a basket handled by more elected officials.
Posted by priya (anonymous) on May 13, 2008 at 10:33 a.m. (Suggest removal)
I know veterans hospital is mainly for veterans and our reserve units. dont know nothing about the PERS stuff. and a veterans hospital does hire civilians. training may be done by reserve units or colleges (military and civilian) but reserve units can only help out one weekend a month. The hospital is leaving either way so when it is sold where will the residents of Adams County go. at least a veterans hospital will help citizens work.
Posted by NtzMom55 (anonymous) on May 13, 2008 at 10:42 a.m. (Suggest removal)
As always, the true working force gets the shaft in favor of an overstaffed management department. The high paid physicians on regular payroll need to be removed. Just think about how many great workers' jobs could be saved if that were done.
Posted by lsumom (anonymous) on May 13, 2008 at 11:06 a.m. (Suggest removal)
Oh yea, and let's don't forget the whopping amount of money NR is paying for the management company. If all of these things were eliminated maybe they would not be operating with a deficit each month.
Posted by destiny (anonymous) on May 13, 2008 at 11:49 a.m. (Suggest removal)
The V.A. hosp. would definitely be a plus here in Natchez, lest you forget we have a nursing program right here at Alcorn who could supply the hosp. with interns for on hands training. I really think it would be a win-win situation, even tho' it would not accept private citizens for treatment. We have one other hospital here and one across the river at our disposal so that should not be a problem. The greatest problem we have in Natchez is having these so-called doctors keeping their offices filled with elderly patients returning weekly when nothing is wrong with them health wise. But then again, these so-called doctors would not be lining their pockets with this get-rich-quick scheme they have going on. If anyone has an elderly relative in a rest home in the area keep a close eye on their doctors visit. 90 percent of their visits are unnecessary. They are just keeping your loved one sick so they can afford their affluent life style.
Posted by priya (anonymous) on May 13, 2008 at 12:10 p.m. (Suggest removal)
yes I agree with you destiny. A few years back they took my mother inside a room wanting to put a feeding tube in my grandmother. My mother refused, and all 10 people in the room acted like my mother was killing my grandmother for her refusal. When my mom left the room one nurse came out of the room and told my mother privately she was doing the right thing.
Posted by jack (anonymous) on May 13, 2008 at 1:41 p.m. (Suggest removal)
WHERE WILL THE POOR PEOPLE GO WITHOUT INSURANCE
Posted by hopefloats (anonymous) on May 13, 2008 at 3:40 p.m. (Suggest removal)
I agree...it is not fair that some dr's and their offices were picked to be natchez regionals favorites..paying everything for them and not others. Buying all those practices was definetly the straw that broke the camels back. But when it is sold i guess these dr's will have to kiss some corporate &@# or get fired like the employees. 60 days the package will be ready and contracts will be reviewed. oh..i thought we were going to be a one hospital town?
Posted by NatchezEnema (anonymous) on May 13, 2008 at 4:46 p.m. (Suggest removal)
Jack, I hope they get off their butts and go to work, cut back, don't buy play stations and conserve and buy some insurance and pay their way like everybody else.
Posted by redusmfan (anonymous) on May 13, 2008 at 4:57 p.m. (Suggest removal)
LSU MOM, I understand exactly what you are saying about PERS. The people that are getting shafted will never be able to get there money back in time for retirement.
I knew there were going to be major changes, but I do not understand one very big thing in this article,
If Mr. Phillips can turn it around and make it show a profit in 120 days, why the he## does it have to be sold???? Why not keep him and sue the crap out of Quorum and move on with teh county owned hospital???
oh well, some Indian or korean firm will end up owning it just like the hospital in Vicksburg......
Posted by NatchezEnema (anonymous) on May 13, 2008 at 5:31 p.m. (Suggest removal)
I have said many times before, there will be no winners in this debacle. The heat should be on the people that let this happen. I wonder if anybody from the hospital board or any supervisors will be at the hospital to say they are sorry to 60 tax paying employees or their families when they walk out with their pink slips. Someone should be held responsible. To all you tourist "industry" people, how many tourists do think it will take to make up for this loss. How much tax on "beds for heads" will it take. How many paid horse carridge rides, or jars of jelly will have to be sold to cover such a loss as this? These are REAL JOBS and Natchez can't afford to loose, not even one of them. You people sit back and quibble over how a vent on a tamale house looks while more people loose their jobs and more families wonder how they will survive. I think all of you responsible for this mess should be whipped, tarred and feathered and driven out to the city limits sign and thrown on your a_ _es. This town and it's backward thinking people have done enough damadge, when is enough enough.
Posted by ITSME (anonymous) on May 13, 2008 at 5:51 p.m. (Suggest removal)
Come Friday this will not be a very safe hospital to be after the layoffs. Will be very severely under staffed and non experienced nurses.
Posted by NatchezEnema (anonymous) on May 13, 2008 at 5:53 p.m. (Suggest removal)
Oh I forgot, Not only is it preferable for the buyer but it could also be historic.
Brown said he is unaware of any such similar hospital sales on record. Only in Natchez could such a mess be called "historic" only in Natchez!
,
Posted by lsumom (anonymous) on May 13, 2008 at 6:19 p.m.
(This comment was removed by the site staff.)
Posted by observer (anonymous) on May 13, 2008 at 7:05 p.m. (Suggest removal)
Can hardly wait for all the doctors to be gone so the air conditioner repairman can take out my appendix!
Posted by concerned (anonymous) on May 13, 2008 at 7:32 p.m. (Suggest removal)
VA hospitals are not for profit...the hospital is suppose to be sold to a corporation that would be for profit. The only way it will survive is to sell it with bad decisions the board of trustees make. I heard there were 85 layoffs on friday...see another poor decision by the board. Save money at what risk?
Posted by Preacher (anonymous) on May 13, 2008 at 7:48 p.m. (Suggest removal)
I'm dreaming of a future plan where our area hospitals share doctors, equipment and services instead of trying to duplicate them at our expense. In a small town like Natchez we don't need hospital duplication or competetion, we need consolidation. Happily dancing together on the yellow brick road to Oz. I know. Dream on....
Posted by NtzRiver (anonymous) on May 13, 2008 at 8:30 p.m. (Suggest removal)
The sad thing is people with no insurance b/c they are too lazy to work. When they send out the bill to the state they don't pay for it all and the hospital has to eat that bill. No wonder doctors want to leave. They can't get paid. Who wants to treat people if they don't get anything in return. About have of the people in collections b/c of that. Pay your bill. They need to just have people pay upfront before being seen.
Posted by STROKER1978 (anonymous) on May 13, 2008 at 8:41 p.m.
(This comment was removed by the site staff.)
Posted by concerned (anonymous) on May 13, 2008 at 8:54 p.m. (Suggest removal)
When the big dogs roll in to buy the hospital all that will change. No more free healthcare...sorry stroker.
Posted by Rhino (anonymous) on May 13, 2008 at 9:13 p.m. (Suggest removal)
Having 2 for profit hospitals will only hurt the citizens of Natchez. For profit hospitals charge lots more for services than a county owned hospital. Natchez Community was one of the top 10 most expensive hospitals in the state in 2005 according to this article and I'm sure it's only gone up. Follow this link to it and go to pages 70-71.
http://www.calnurses.org/research/pdfs/I...
Also, the people that have the most experience only stay at Natchez Regional because of the retirement {PERS}. If it is sold the PERS will be gone and the best most experienced employees will be gone. So the city of Natchez will be left with two expensive hospitals and degraded health care. I don't think we should sell our county hospital just because of several years of bad management. The poor people won't be the only ones suffering if this happens, the whole county will suffer. Big Corporations like HMA don't care about patients. They only care how much money they make.
Call your supervisors and tell them you don't want to lose your county hospital to the money hungry corporations. They are the only ones that can keep this from happening.
Posted by steve_o (anonymous) on May 13, 2008 at 9:29 p.m. (Suggest removal)
If the hospital gets sold to a private entity, and no longer belongs to the county (ie., the people) will we see a tax rollback from all the years of taxpayers supporting it?
Surely this will be sold for some kind of profit, maybe a rebate check for all the taxpayers is in order. Seems as though they invested taxed $$$ in it.
Posted by justoneopinion (anonymous) on May 13, 2008 at 10:16 p.m. (Suggest removal)
steve_o: its nice to see that you only care about yourself and hoping you get something out of this!!! THIS county needs to wake UP!!! What is happening is major!! Put yourselves in the employee's shoes. 80 some odd employees dont know if they will have a job come Friday. That is something to be scared about!! Not knowing how your gonna feed your family or pay your bills. You all are making wise cracks when this will affect you in many ways, you may not see right away...but it will. This a sad time for this county and community. Rhino is right, it doesnt need to be sold. Taxpayers dollars have not been put into that facility, so hate to disappoint you steve_0 you wont be getting rebate!
Posted by steve_o (anonymous) on May 13, 2008 at 10:39 p.m. (Suggest removal)
WoW! justoneopinion! Wow! "Taxpayers dollars have not been put into that facility,"
I really am not sure how you see this as caring about myself. This hospital is county (taxpayer) owned. Millages have been approved through the years that include a li'l something in them for the hospital.
My only question was, Since they plan to unload this, are they going to roll back that part of the millage that they got to help fund the hospital all these years?
I don't believe it should be sold either.
Posted by Whisper (anonymous) on May 13, 2008 at 11:26 p.m. (Suggest removal)
For the harsh opinions in regards to people that do not have health insurance. Do you really think that we ALL chose not to have it?? Just be glad you are not one of them. Because you would not like the fears and the way you are treated. BUT,,,, that still does not mean. That we do not pay our bills. Most of us do. We can't run to the doctor everytime we sneeze or break a finger nail and fill up the waiting room. We go when there is NO other choice. And I may not can pay the full amount right away. But they DO get paid. So until you have been there. You should think before letting something so hateful fall out of your pea brain mouth.
Posted by steve_o (anonymous) on May 13, 2008 at 11:46 p.m. (Suggest removal)
Whisper, I feel you.
I am fortunate(?), to have blue cross/blue shield insurance, that is employer sponsored.
I get to pay $138/month out of my earnings for this.
I pay the single rate which is 40% of the cost at my workplace. My employer pays the rest.
P.S.: In order to have rates this low(?), my deductible is $2500. ( I hope I don't get sickly!)
Posted by hopefloats (anonymous) on May 15, 2008 at 10:08 p.m. (Suggest removal)
I won't give the man much credit. Did he say he was selling it to a medical corporation. Maybe it is changing to another hotel for the garden club ladies. After all administrators don't really have good medical sense. Just smooge over the board , cut staff, paint, sell. bam...a new hotel. hey maybe the layed off staff could do a little construction , painting, for him since there is no ready cash.
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