Monday, October 15, 2007

Twelve local investors to buy Bonham hospital....10/17

From a comment:

By Vicki Graves

BONHAM — Twelve local doctors and investors recently took on the venture to acquire Red River Regional Hospital and it will be locally owned and operated.

Their $3.2 million offer was accepted Thursday by Attentus Healthcare of Nashville, Tennessee, CEO Dave Conejo said Friday. Officials at Attentus Healthcare couldn’t be reached Friday for comment. Hospital officials now move toward “doing the due diligence” and getting the loan completed. Their goal is to have that done by year’s end.

The majority of involvement is from area physicians. Now, they just have to do the work that will consummate the transaction, Conejo said.

The closing process will involve getting the property inspected, having a title search done and making sure there are no problems.

All contributions are held in an escrow account at Bonham State Bank.

When the local investors take ownership, they said they will completely remodel the emergency room and all patient rooms.

“The way the hospital is set up, we decided not to try to squeeze two patients into one room,” Conejo said. “When this hospital was built 38 years ago, two patients were kind of tight in those rooms, so we decided to make them all private.”

Patient rooms also will be equipped with comfortable recliners for family members who want stay at the hospital with their loved ones.

The enterprise began when the idea came up just two months ago.

“We’ve got a lot of people that are really getting behind this,” Conejo said.

The group doesn’t have all the money yet but has pledges lined up for a large portion of it and is confident that by month’s end, the rest will be in. All contributions and investors are welcome, he added.
One has to wonder, why the local docs haven't joined forces with other local moneymen to regain control of PRMC from Essent.....or is the price too high?

Now, my take: Interesting that I was being taunted by one of the Essent hanger-ons, and he had the following to say:
Like I said in my earlier note to you, since you are so good at hospital management, you should go raise some buckaroos and buy the hospital that Community Health ditched in Bonham. Why I betcha as smart as you are, you could jes' suck Paris Regional in no time flat. In fact, I bet you could bring Essent to its knees.
He might actually be right. Clarksville has seen an increase in utilization, as had Bonham. With the troubles we've had here, it would appear that some shrewd investors saw an opportunity to not only take more control of their destiny, but to leverage an advantage out of Essent’s troubles. It isn't the big threats, it's the chipping away of the healthcare dominance that Paris once had. Essent has provided the opportunity, and now it's being taken advantage of. Hopefully they do more “due diligence” than Essent did.

The shame of it is, by the time Essent is forced to sell, there might not be anything that is worth buying.... I heard that the taunt came from a lawyer...maybe he should be advising his clients, as prophetic as he is, rather than me!


fac_p said...

There are two things about this purchase that are interesting:

1. It is a reaction to the instability generated by the constantly changing ownership. (If it was purchased by Essent-like companies, the renaming contests could have made it as a game show. The Price Is Right?)

2. Each time a sale occurs, the buying entity has their list of what needs to be upgraded/changed ...and what needs to be cut. Obviously, the previous owners have been doing it wrong. That's not true here. The new owners are just hoping that Essent will keep on doing what they're doing and driving patients their way.

Another paradigm breaker is PRMC. Essent is creating the exact situation that they usually try to capitalize on: A company or hospital that invests too much in the existing plants, realizes that they are over-extended, and has to sell at the market. With the Essent board trolling for buyers, and no bites, the market value is zero.
G-day, mate! ....frank

Anonymous said...

If you're a local investor, do you get perks while you're a patient? Might encourage investment! A founder's club?

Frank said...

Frank if I ever win the lottery, I am giving you a few mil to buy PRMC. By the time I win, it should be down to bargain basement prices....

fac_p said...

Funny, but I might even hire one of Essent's choices to run it....

By that, I'm not saying that I approve of what they've done, just that the top management sets the tune. The hospital CEO merely dances to it.

I probably wouldn't, though. They seemed too enthusiastic about the playlist.

fac_p said...

Had a weird enough response to the previous comment that I probably ought to explain:
If you are working in an area, two competing employers might want to hire you--but the way you perform your job is going to be different under each employer.

Several hospital CEOs would be equally desirable to a non-profit or a for-profit organization. And some would not do well in one for profit as they would in another.

The corporation sets the tone and the order of priorities. Hopefully the priority order that I would emphasize would be different than that of Hud. I know my temperament would be....