Tuesday, November 13, 2007

Essent's Future....11/25

I suggested to a person in the industry that there are only a few possibilities for Essent: Sell or turn into a kinder, gentler Essent--more of what they pitched to Paris in the courtship.


He replied:

Hud was the central focus of this whole thing. With him gone, the venture capital guys have to either expend a lot of effort to put a new team in place and hope that things improve or they can cut their losses, get what they can through a sale and move on to something else. I don't think any of them have a particular passion to manage hospitals. If the company were bigger, I could see them wanting to salvage things with a new management team. But with just 5 hospitals, I'm guessing they'll let someone else have them.

The sale might be compromised by the pending settlement with Hud, depending on the length of time it takes. Ironically, he might be the only winner in this mess, or the spoiler that will destroy the value for everyone. I'm betting on the petulant child.



What could that do for or to Paris? The biggest problem Paris has is the joining of the two hospitals. Too much property, too many duplicated services, and a lack of competition to make it work. If Hud holds out, it could force a fire sale, or, an actual bankruptcy that might split it up (how long have I been saying this?) Or, if he settles early, we're stuck with the status quo.

I can't see any progress on the new Heart Hospital. This was originally delayed until April from the new year. What is the projection now? If Essent is going to bluff it out, it almost has to get going with the plans to show that management hasn't slipped.


I'd say they're dancing on banana peels.

15 comments:

Anonymous said...

Can you say "rudderless ship"?

I knew that you could.........

Anonymous said...

A post from NORTHEAST ESSENT (September 2006) comes to mind here. Annonymous said 1:52 am...
The final story has yet to be written on the once great hospitals that Paris once had. It would be wrong to blame Essent for the "SHELLS" that we have now. Essent is here, I think for one reason: to put together a chain of turned around "hospitals" that look good financially, but in reality not much good to the community.(In which they once were regarded as meeting most of the medical needs of the community.)They may be sellableto the "Big Boys" but not to the people who live there. How unbelievably sad it has been to witness this death of our once great medical center, shame on you who know better but don't speak up. You and yours will have to use the hospital that you have participated in creating; either by eager participation or by blinking at what you know is wrong. As for me and mine, we are heading to Dallas.

fac_p said...

Here is the problem: If Essent does crash, the catch-up time for anyone to come in an clean up the mess will have an impact on a large segment of Paris. A new employer might do the same as Crossroads: You can apply for your position, but as far as we're concerned, you are a new hire.

Time to be a bit frugal. Translated: Buy some games for the PS2, don't get the X-Box 360. Dust off the CVs, resumes, and references. Look at up-training and cross-training options now, rather than when it is crunch time. Take a good look at finances and make gradual changes, as opposed to major ones when forced to.

I don't want to think about economizing this close to Christmas, that's something you figure on for the New Year. Just don't bite off more than you can chew.

Anonymous said...

Speaking of NORTHEAST ESSENT perhaps it is time for an update on the Cardiology Saga at Nashoba Valley Medical Center. The Massachusetts Board of Registration in Medicine has issued a formal Statement of Allegations against cardiologist Dr. Adam Wheeler Cerel, Essent's "gravy maker." This is a public document and makes for some interesting reading just like his Practice Restrictions. Number 3 states: There were 62 Incident Reports filed at NVMC against Respondent by staff, physicians, and patients in the 3-year period between February 2002 and January 2005. Apparently Andrei Soarn and his crack senior management team were waiting for 100 Incident Reports before they were going to address the problem. All they could see was the almighty dollar and the bottom line. NOT ONE BIT OF CONCERN FOR THE PATIENTS. The year 2008 is right around the corner and one by one former and current employees of the Nashoba Valley Medical Center will be testifying before an Administrative Magistrate. These proceedings will be open to the public and the press. Looks like another Public Relations Nightmare for Essent.

Matt said...

Frank:
Your most recent post pretty well sums up you and your fellow bloggers lack of understanding of economics 101. To wit: you say in part that PRMC has (i) too much property, (ii) too many duplicated services and (iii) a lack of competition to make it work.

I could not agree more. The irony, however, is you chastise a company for attempting to deal with these market conditions. When you have too much property and the duplicated services the ONLY way you have a chance to be successful is the cut. Pure and simple. To reduce duplicated services means folks will by definition have to lose their jobs. Do you, honest to God, think any manager likes to cut jobs? You are nuts if you think they do. Finally you say there is a lack of competition to make it work. Frank, Frank, Frank there was competition for years in that god forsaken hamlet known as Paris and it didn't work....why in the hell do you think THR got out and created a monopoly for Christus.....who couldn't make it work because of (i) and (ii).....you have to cut out stuff and they couldn't deal with the petty bitching and moaning on those that ended up on the outside looking in. Essent truly just stepped into a pile of shit when they thought they could come in and be the unbiased owner to make changes.
This history of this blog is nothing more than a petty reaction to Essent trying to deal with the three points you raised......Essent, Baylor, ETMC, you name it cannot deal with these issues without the wrath of the small minds that exist in your backwater town.

Mattie-boy,
Glad you agree about the main points. Warms my heart.

Obviously there were problems--Essent was inexperienced enough not to recognize them. They got in well over their heads. The automatic solution that bean-counters have is cut staff. You lose your experience base, and the majority of the good staff that is mobile: Because they can go anywhere.

THR couldn't make a go of it because they alienated the medical staff. This is a closed work pool, without the scale of the metroplex. You can't just piss one them off and have his replacement there in ten minutes. Raising the rents and demanding a 5-year contract may work in Dallas, but not here. They went from needing office space to having a dozen empty suites.

It would've been even worse had the market not taken a downturn and lowered the retirement accounts of most of the physicians. More would have bailed out.

As for the other side, Health Solutions was poorly run as well. The Rabbi accounts, the off-charging expenses, and the non-billing for the outpatient surgical center were Captain Monty's Titanic.

What has really hurt has been the errosion of care. When people that can afford to go somewhere else, and do...you've sunk yourself. Then you're stuck with a payor mix that is unsustainable.

Reputation is everything, and Essent has nothing in Paris.

And I actually did like micro and macro econ....frank

WHERE'S BROWDO? said...

"Hud was the central focus of this whole thing. With him gone, the venture capital guys have to either expend a lot of effort to put a new team in place and hope that things improve or they can cut their losses, get what they can through a sale and move on to something else."
My guess is that making Mike Browder both the CFO and the CEO signals the end for PRMC and E$$ENT. Why? Ask yourself how many times we've seen Browdo in Paris.

Anonymous said...

Maybe they can start a new reality show: Who wants to be a CEO? Whupps, that's what Essent has been!

Lord of the Rings remake? We have Frodo cast!

Miss Matt-ers said...

Re-read what you wrote and you make my point about what a backwater wasteland of a town Paris is......classic...."may work elsewhere, but not here in our little burg".....everything related to economic development in the DFW area (including Sherman/Den....works. Get to Paris, and you immediated hit the us against them mentality.

Sorry Mattie, but not a terribly good example. We don't have the proximity of the metroplex, and in some respects, thank God. The expansion that you so eschew has swallowed communities whole, leaving nothing of the personality. And that's why people are buying property out in this area: To get out of the sprawl!

Property is still cheap, you're not so close that you have to say "Bless you" when the neighbor two doors down sneezes.

This is more like some of the communities way outside the I-495 loop in the Boston area. Just not as many trees. Or restrictions. Or as pricey.

Think of Ayer with armadillos ....frank

Anonymous said...

You know Matt, I find it interesting that you represent yourself with tons of name calling. What kind of person are you that you can't have a post without some sort of slang? I find it sad that you fail to realize that all this behavior does is negate your opinion. I certainly would give much credence to you based on your lack of maturity!!

Anonymous said...

Like it or not, the future of PMRC will include a sale. The wild cards in the future are much more ominous: the flight of primary care docs from the hospital due to the decreased number of Docs who will keep hosp privileges is already in a spiral. The continued outmigration of patients with insurance will further decrease revenue which will preclude Essent's management (who will not spend money unless the money is guaranteed to have a financial return in a short time frame)finding the money and foresight to spend the money required to move all acute services north; another death spiral.

In the end we will have a hospital, and it will have to be owned by local people whose self interests are served best by making the long term commitment to the town and not to some venture capitalists bottom line.

A final word to "Matt" you are a misinformed moron who has no dog in this hunt. Of course your opinion is: like a__holes, everyone has one!

Matt-tilda said...

Mr: 2:36 commenter.

I couldn't care less if you give credence to what I post, or how I say it.

You see, Frankster only posts a small percentage of the sh_t I send in (usually with heavy edits). (Frank I assume you will do the same here).

I really just enjoyed f_cking with you small minded, parochial villagers. About the only time you see life outside of Paris is when you come to Dallas for the state fair so you can load up on fried twinkies, corny dogs and other artery clogging, diabetes causing lifestyles..........

Enough is enough. Matt is gone from the comments, unless he squeeks a clean, insightful comment through that is terribly out of context for him.

I like controversy, but the vitrol that I get from him towards the community isn't worth it....frank

Anonymous said...

Alas poor Matt- I knew him not.....

Wonder if he's a plant by Hud, Dickie or Duckboy? Guess we'll never know.....

Onward- right now, we see a rudderless ship, with the samce cast of idiots who cast Hud out spouting crap that not even the former Iraqi Information Minister would believe. The absolute best thing that can happen to each of the facilities is that they be sold, either individually, as a whole, or in sets. Paris needs to take the lead of their neighbors one county west & buy the hospital back, possibly moving everything out to an expanded north campus like Essent promised (but can and never will deliver), selling off the cramped old St. Joseph building.

And, speaking as someone who lives close to the ever-creeping-northward Metrosprawl, you Parisians shouldn't have to be the least bit concerned with what some close-minded individual thinks (for him, the world ends north of Plano and east of Mesquite).

I've played the traffic games in Boston, New York, Chicago, Houston, Dallas, and, yes, Nashville. Thank you, no. I like the services, the availability of products, but not the frustrations. I don't like a two hour commute to travel 28 miles. If I want to take that long to get that far, I'd rather do it on horseback, on a nice day and enjoy it.

Is Paris my ultimate fantasy? Not really, but it's closer than any one of those places. Just wish it had mountains, beaches, or both....frank

Anonymous said...

Went into PRMC North today for the first time in a long, very long time. To sum it up in a phrase, "What a dump." Reminds me of a hotel that had seen its better days, on its way down. What a shame. Huddie and his buddies really did a lot didn't they?

Woot said...

So Huddy's been voted off the island....The problem is that no matter who wins that game, we, the citizens of Paris, are the losers.

Anonymous said...

Essent's future? For the present, one full of lawsuits, both against & filed by them. Looks like the only ones making money will be the lawyers.

And with so much time spent in courts and attorney's offices, how much will be devoted to running this far-flung, prosperous empire (SARCASM ALERT)? Precious darn little.......

How will this all look on Hud's resume?
-Forced out of one major for-profit company, lost suit against same. Twice
- Started another for-profit company, only to watch it sink (or was it scuttled by Hud and his scurvy dawg crew? In light of recent allegations, one has to wonder.....)
- Started yet another for-profit firm, only to be forced out of that one (and again, there's that E-word springing up). Most likely, will file suit against this one.

Now I'm not the sharpest knife in the drawer, but all this adds up to one executive I wouldn't let run a lemonade stand, let alone a hospital chain.

And the last chain he was booted out of is barely breaking even, with all recent attempts at expansion soundly rebuffed (somebody out there did due diligence, or at least had their heads pulled out of their, er, behinds).

Note to Essent board- never mind trying to figure out who "Frank" really is- focus instead on trying to do something with these properties, either by running them right or selling them off, and taking the loss. The truth is leaking out all over, and not just here on this blogsite- you cannot plug all the leaks, so start bailing like heck.

And lest you think the good folks at Christus and THR are blameless, think again. I won't rehash past history, but separately and collectively they managed to make two capable hospitals into one facility on the brink.

Flagship, my (censored)!