Sunday, March 26, 2006

Sinking Ship?--4/24

There was a reference to a couple E$$ent folks leaving that got me wondering:
Hal Andrews and Joe Pinion were both players in the Essent matrix, Executive VP of Planning and COO, respectively.

Now, Nashoba Valley Medical Center's CEO is bailing in the middle of the planning phase for new construction. CEO Andrei Soran gave his two weeks notice.

I wonder....

Since it's a private corporation, there is no way to tell what options he loses by leaving. There is no open public record of their profit/loss--just to their investors...which were here this month evaluating their investment....

Probably a good thing....

27 comments:

Anonymous said...

Don't forget Bill Heburn is no longer with E$$ent. I checked. He was the first CEO for PRMC. He is no longer with E$$ent healthcare.

fac_p said...

Try this on for size: He made the comment about profitability (1 in 5) regarding Crossroads in September. I've used it numerous times.... I thought he was listed on the corporate site as of 2 months ago.

Wonder who can come up with our figures? ...and get Mr. Rolls-Royce to say them...

Anonymous said...

So do you think they are going under?

What happens if they do go under?

fac_p said...

In a court ordered disposal of assets, and a breakup, the obvious first choice would be a physician/staff consortium buying the North Campus. It would be a chance to get out from under the tax liability of the additional properties. The size would be better for such a group.

Another organization would probably purchase the South.

And, competition is good--it keeps the employers paying a competitive wage, it keeps the facilities in better shape, it provides better quality of care, and it keeps the competitors on their toes. You can't afford to rest on your laurels.

If they actually took it to door-closing, a case of abandonment of patients could probably be pushed to the parent-corporation level to keep the facility running while the disposal was made.

Anonymous said...

So, it would be possible then for us to split back up with the 2 hospitals.

Would that affect the rural designation, and the monies received from it?

If the doctors stopped admitting patients (with the exception of the ER and maternity--we all know that is under EMTALA) what is the possibility that it would force the doors so we could get on with the process? I guess its hard to know not knowing the bottom line. Who knows how much time that would take.

I really don't think Essents pockets are that deep.

Anonymous said...

In several earlier posts, the "accidental" elimination of Andrew and/or Hud was suggested as a solution to the gradual demise of OUR medical community.

I would like to suggest that it is not the people at E$$ent that constitute the fundamental problem, but their management philosophy (or total lack there of). True, individual personality disorders don't help things, but the local administrators are at best messengers. Andrews days here are surely numbered, but they (Hud) will just replace him with another pawn if the company still exists at that point.

At the current rate, I give E$$ent less than six months before the doors close. Of course, they will tell you that everything is fine until that day comes. Then the doors will be locked. They will blame everyone else for the demise... the nurses, the doctors, and the patients... the bad, bad town of Paris!

Paris, the COMMUNITY needs to band together and send a message to Nashville...

"Don't mess with Texas!"

fac_p said...

When you hear this comment, it's getting close:

"We believe that the company simply needs more time to allow its concept to mature and to grow its market share and revenue base," Hud Connery, one month prior to closing Arcon Healthcare.

Hopeful Citizen said...

fac_p
Thanks for the help
I had no idea PRMC was having this
problem. Most citizens do not know about any of this. Maybe with the link to Citizens for Paris Texas
we can help get the information out to the public.

Anonymous said...

And the easily voiced assurances of Hud, will definitely be the harbinger of our doom here in Paris. Keep a sharp ear tuned...........as it WILL come to pass. Then we'll finally be forced to DO something, as opposed to talking about it!

Anonymous said...

From The Paris News
Published March 22, 2006

To the Editor:

Re: Medicare Modernization Act not accepted at Paris Regional Hospital.

Larry Reaves, director of Patient Business Services for Paris Regional, says the hospital has agreed not to accept the private fee-for-service plans being offered by major insurance carriers. How disappointing for over 30 Paris residents?

These PFFS plans allow Medicare beneficiaries to seek medical care from any doctor or hospital that accepts Medicare’s current Diagnostic Related Group (DRG) payment system. The PFFS plans were designed by Congress to attract Medicare beneficiaries, particularly in rural communities.

Medicare Part C, the Medicare Advantage Program, received more DRG reimbursement under the Medicare Modernization Act. This increased funding has encouraged more insurance companies to create attractive, new Medicare plans under Part C of Medicare.

Some new plans offer a zero dollar monthly premium (but the Medicare beneficiary must still pay the Part B premium of $88.50). For example, a major hospital stay may only require a $200 co-pay for the first four days, then all covered claims would be paid at 100 percent.

Today, Paris Regional Hospital requires the Medicare beneficiary to pay a $952 Part A deductible, then 20 percent of the remainder of the expenses. A $100,952, hospital bill requires the Medicare beneficiary to pay a $20,952 out of pocket expense. Many times this amount goes unpaid, since many Lamar County residents live on $15,000 per year or less, mostly Social Security income.

The question is: would Paris Regional rather collect $800 or $20,952? At this point Paris Regional is uneducated on these updated PFFS plan designs offered in Part C of Medicare.

The buses are headed to Greenville for medical care, and the county is losing money. So is the hospital; if only they would understand: the Medicare Modernization Act has modernized Medicare. Now, the hospital needs to modernize their thinking.

Mike Smith

Highland Village

Anonymous said...

11:30

It is the people. Hud=E$$ent=Hud

He is the CEO and founder of E$$ent Healthcare. He founded E$$ent in 1999. Prior to that he founded Arcon Healthcare in 1996 and it went bankrupt in 1998. We've already seen several executives go, but we won't see Hud go. It's essentially HIS company. He has financial backing from Thoma Cressey Equity partners and, Vestar Capital Partners. I'm sure he had to put up a major investment himself in order to get financial backing. He's lost several executives. That tells you that they probably didn't invest in E$$ent originally, but they could possibly have had major $tock option$ that they forfeited. Now if it's Hud's company, then he sets the policy and the management philosophy. Let's assume that he doesn't have any money invested, well He's still the CEO and sets the policy and management philosophy.

Now if Hud is no longer there, then the board of directors will have to make some decisions. Since Hud has essentially replaced ALL of his senior management team, who would lead the company? There is a possibility that since Hud is the founder of this mess that getting someone to take over in his absence would be difficult. The possibility of selling the assetts and declaring the adventure Defunct (like Arcon) would be an option.

Now if some of the other executives (like Drew) found greener pastures (how do you like that) this may get the attention of the investors. Getting attention of the investors may will eventually force a decision with E$$ent.

Anonymous said...

I think I'm going to quit nursing, and become a bus driver!!!!!

Anonymous said...

30,000 hits! CONGRATULATIONS!!!!

Anonymous said...

No one has said a word about the director of MIS being fired 2 weeks ago. Is it another secret?

Probably. As PRMC circles the drain, you probably don't want to be going in the same direction...was the director fighting the current???

Woot said...

oooh MIS director got fired???? DO TELL! DO TELL!

fac_p said...

"Tom Brunette, Administrator or director? Which is it. Was he promoted and then demoted? What's up with that? His departments were left hanging while he was trying to be an administrator and while he was working in the ER on a personal issue. He has been know to be rude, condescending and of course is part of the good ole boy network. He needs to be taken down farther. Leading by intimidation should not be allowed." quote from "A New Comment"

Are we saying that "management by stick" is leaving PRMC? Nope, just that Tom is....

Could it be that Andrew actually listened? Nah (If you look up Management, E$$ent Healthcare, it says "See Peter Principle"....)

fac_p said...

You can really tell the health of a hospital when the folks that are maintaining the equipment are job-shopping...either it's all going contract (because they're installing new...ha), or the bubble gum is about to give out and they don't have money for another pack.

Had a rumor that they bounced a couple employee checks--wasn't going to publish it, but maybe there was something to it....

Andrew, fess up, did you just have your cars detailed??

Anonymous said...

Tom is leaving? Is anyone going with him?

Woot said...

Well something is going on....They are spiffing up the place. Recently saw them waxing floors that didn't need it on North side and heard they replaced all the internal O2 and Air tubing on South(putting all the patients on portable O2 for a day). So my take is it is due to one of the following:
1) Too Little Too Late
2) Possible JCAHO inspection (Andrew's been reading this blog again)
3) E$$ent is getting ready to sell us down the river.

Shall we do a poll? Which one is it? Which one do you HOPE it is???

Anonymous said...

I hope they are gonna sell!

Anonymous said...

So it seems that E$$ent wanted to host their annual golf tournament again this year....

...too bad it had to be canceled!

Seems that everyone wanted to play golf alright...

... just not with the E$$ent folks!

What a surprise!

And About that Gala coming up...

Stay tuned!!!!!!!

Anonymous said...

What happened with the golf tournament??
I heard that not many showed up?? Quit teasing and tell us that are "temporarily out of the loop" what happened!!

fac_p said...

The loop you're out of, is the distaste the physicians and community have for E$$ent. It's a shame, really, because if E$$ent had come in with either a different game plan, or attitude (they might be inseparable), it might have turned out differently for both of us.

Someone had the idea of a Boutique hospital owned by the community...wouldn't that be a kick in the head for them? I think that it isn't feasible, but out-of-the-box thinking is what we need.

Anonymous said...

It would be a kick in the head. A friend of mine from Denton, told me that some of the same things were happening over there. The doctors got together and built a botique hospital----took the best of the best nurses from the local hospitals, and took pretty much all of the local insured business.

The nurses get bonuses--meals--great pay, and the doctors are making more money than they know what to do with.

They built a small ER so they would get higher pay on the DRG's, but for some reason it's really not used. There is a doctor and a nurse there, but the ER does not get many if any patients---for a reason, but I don't understand the how or why of that.

Anyway---the local hospital was seeing red over that botique hospital---in more ways than one.

Anonymous said...

By the way, the tax base is about to change: There is a powerline coming down the 195 corridor. This will do two things: lower the value of those directly under and around the actual lines, and raise the taxes on everyone else to make up the shortfall.

I wonder if the hospital got a tax abatement? The other industries will, so it will fall on the home owners and small businesses...and E$$ent. How 'bout it Hud, glad you got all that property?

Anonymous said...

931
"2) Possible JCAHO inspection"

I worked 3rd floor tele yesterday...and was told by a contract nurse that JACHO had been on the floor previously that week. And that they were writing feverishly in their little books of inadequacies.

And on a positive note....this particular nurse advocated for us...the workers...and started pointing out other inadequacies to the JACHO people. I for one like the contract nurses, and AMEN that one of them took the initiative that the PRMC employees should have done, but then again, if she gets "let go" she just moves on. Thank you contract nurse!

Anonymous said...

11:16

Way to go for finding something good in somebody else------ and to the contract nurse who talked to joint comission---Way to go!!!!!!!!