"We are attracted to Essent because its hospitals are financially sound(????) and provide essential, high quality(????) care to the residents of the communities they serve," said James L. Elrod Jr., managing director with Vestar's New York office."Essent's business model is consistent with our investing strategy. We are particularly excited about becoming partners with Hud Connery and his management team."
But, it served two purposes: Tarnish the reputation of RRVR, and allay the investor's fears...making them feel that profits would be up $1.2M (what they were supposedly paying the Radiologists to read films.)
So comes a lesson, of sorts. Just plugging in money to the wrong thing does not success guaranty:
“We’ve made significant investments in Crossroads over the past five years, including the construction of three medical office buildings, renovations to the emergency room, and a new 3,000 square-foot outpatient physical therapy facility,” said Bill Heburn, executive vice president, operations, Essent Healthcare. “Despite these significant investments, Crossroads posted a positive operating income only one year out of the five we’ve owned it."
After that, Bill's future was made...or un-made.
One also might wonder about Hal Andrews, and how he disapeared so fast: Apparently he and Hud had rehearsed some song and dance for the Essent board about something. Well, Hal inadvertantly said something that embarrassed Hud in front of the board, (according to HUD , himself) and the next thing Hal knew, he was fired. (Rule #1)
So, Rule Number 2 for PRMC execs: You serve at the pleasure of Hud. It could be that Drew's statement in support of Tony Williams will be imortalized here as well....frank