Sunday, July 16, 2006

A New Sheriff?...7/23


Rumors abound about E$$ent's financials, but here's a new one: The folks that Weatherford selected, CHS, is buying PRMC. If it's true, you heard it here first. If it isn't, I didn't say nuthin'.

In retrospect, I did have some nice things to say about them, but I wouldn't have thought enough to bring them here.... Guess it wasn't me, then.

Apparently they've been buying hospitals that are in the same category as what Essent has been, but with deeper pockets, they can afford to take the long view. Funny, they're out of the Nashville area, too, I believe.

Granbury has been one of their recent acquisitions, and despite a near boycott, have plans to triple the number of beds, and with a new facility/medical staff, they are betting on success.

This was a quickie, and not as well developed as the usual fare, but I just got the email, and had to punch it out. Stay tuned for updates, revisions, and flat out denials.... If true, this has scooped the Nashville Business News and a lot of reputable papers...oh yeah, and the Snooze....

14 comments:

Anonymous said...

CHS buying PRMC? May God help us. CHS has closed more hospitals than Essent has ever owned. If Essent has us on the market, maybe one of our neighbor not-for-profits would take us back. Anybody listening? Please?

fac_p said...
This comment has been removed by a blog administrator.
Anonymous said...

Wait a sec. Let's keep the facts straight: Essent hasn't closed any hospitals. Ever. It sold one to a not-for-profit. Can't say the same for CHS.

One other thought: Don't give the Campbell decision to go with CHS too much credit -- it just means CHS offered more money, which means they'll just have to extract more money out of it. The checkbook always wins in these things.

Anonymous said...

Except for one thing, Essent told employees that they would have to close the hospital within 2 months if the deal didn't go through... http://www.ksdk.com/printfullstory.aspx?storyid=84765

fac_p said...

One thing CHS usually does: Replaces management down to director, and possibly managers.

The collar getting a little tight, guys?

fac_p said...

One has to wonder, though, why Essent did hold on to a hospital that they lost money on for four years out of five. Since it is a private corporation, it's only speculation, but I'd have to say that the reputation of having x-number of profitable hospitals under their belt is better than saying that they were bleeding red and hoping the next acqusition would pull their a## out of the fire....

It's like this one, where they darn near doubled the number of beds in their organization. Looks good on paper to the investors, but since the financials are closed, who knows how the nighthawk rad service, the locum radiologists, the contract for the new cardio guy, the traveling nurses, the floor revamps, the cardiac monitoring system, and the other misc. expenses are impacting the bottom line.

Wonder if they'll be able to make a hospital west of the Mississippi profitable in the long term? (Wonder if they could survive an investor audit?)

A market survey of the original servicing area would have shown a population base of about 125,000. Right now, we can't keep the 25,000 in town as customers. With a better business plan than 'try to keep our heads above water', there might be a chance of success. Apparently Essent doesn't have the plan, nor the pockets to pull it off.

CHS has a track record (it's a public company, stock options, anyone?) and deeper pockets.

Just remember, there will probably be a re-application process, since it's a for-profit to another for-profit.

Anonymous said...

You forgot our marvelous PACs, and the extravagant raise that everyone got.

Anonymous said...

Just so you have the latest info, CHS sold the hospital in Bonham over a year ago.

fac_p said...

Looks like they update their site as much as PRMC...

fac_p said...

Considering that Essent has closed 20% of the hospitals that it owned (at the time), I wouldn't put much stake in that.

Right now the system has about 76 hospitals, Bonham being the closest of the nine in TX.

Essent said this place was going to be their 'showplace'. Well, they got a chance to 'show' it to the Campbell folks, and they went with CHS....

Bonham was a CHS hospital, apparently sold last year

Anonymous said...

Unconfirmed rumor: Cheryl Perry, Evil HR director, is the next to get the axe. Bout friggin time.

Anonymous said...

Oh no not poor dear Cheryl!! Say it ain't so! Wonder if they will walk her out like the rest? Who wouldn't like a picture of that? One could become wealthy selling prints of that picture.

fac_p said...

Just publish the time, I can have photographers there in a flash!!!

Anonymous said...

Better watch out...Better not cry....Someone is watching PARIS employees..nothing is a secret...Hey, saw "Tommy Boy" with V-teer at Hugo...Wonder whose dollars they gamble with??? Volunteer money, Oh Know.....Who is watching PARIS....What about compliance???? Someone is watching....Blondie knows all...Watch yourself.....