Monday, March 23, 2009

What Does Essent Want?....3/30

So, Essent is bucking the trend. They're back in a buying mode? They have free capital to invest, or their backers are so enamored with what they've done so far that they're willing to advance more money?

Someone has done some fast talking.

So, what should they look for? A hospital that has just completed major renovation, facility and equipment. One that has a monopoly in an area that has a heavy percentage of insured patients. One that is concentrated in one location (campus) with room to expand. One that is in a right-to-work state. And, last but not least, one whose finances are in the toilet.

They keep trying to buy publicly owned hospitals, but that's because they can off-load the debt to the community. (Look at previous purchases.)

Natchez was probably a less than optimal choice. There were two campuses. (They wanted to buy two hospitals there, two sellers.) Jackson would have been a better area, but neither area is great.

Could it be that the role of Essent was going to be merely that of landlord? The vaunted management skills not put to use? That would be rather telling as well. Maybe the tenant was directing this one.


Anonymous said...

Does it really matter? The way I see it is we now have Baylor in Greenville and Sulphur Springs. That means e$$ent is losing patients and staff because the people of Paris don't have to drive too far to go to a real hospital. What are the odds that Baylor is going to put e$$ent out of buisness here or eventually buy them out? The only question is how big of a loss will e$$ent have to take.

Giles Corey said...

When you find yourself in a hole the first thing to do is to stop digging. Why can't Essent seem to figure that out?

Anonymous said...

FROM:Charlie Therrien
SUBJECT:Common questions
March 30, 2009

As I meet with departments and individuals there are a few questions that come up
that I thought I would respond to across the hospital.
Will DTO continue?
We will continue to make sure that we maintain the correct level of staff for the
fluctuating level ofpatients in both the inpatient and outpatient areas, clinical and
non-clinical. I understand that this creates anxiety and financial pressure during
difficult times; however we are trying to reduce our expenses and avoid the
elimination ofpositions.
Why spend money on Studer at this time?
The investment in Studer is an investment in the training and development of our
people. It is consistent with our educational assistance program, CME, and
other training that are all investments in the employees. The measurable outcome
from all of these initiatives is to improve employee satisfaction, which drives
patient satisfaction, which drives volume growth.
What is the hospital doing to increase business?
National trends indicate that people are putting off elective and non-urgent
healthcare services due to the economic issues that we all are facing. In order to
offset these trends we are actively pursuing strategies to grow new business. For
example, we are actively working on a plan to open an urgent care center in New
York, we are in the process of developing a coordinated women's health program,
we have hired nurse practitioners and physician assistants to improve access to
primary care services, and we continue to actively recruit more physicians to the
Please don't hesitate to contact me with any additional questions. Thank you very