Six BRHS commissioners mute

Published 11:30 am Sunday, December 12, 2010

By By JONATHAN CLAYBORNE and BETTY MITCHELL GRAY
jonathan@wdnweb.com, betty@wdnweb.com
Daily News Staff

By JONATHAN CLAYBORNE and BETTY MITCHELL GRAY
Daily News Staff
Two of the nine members of the Beaufort Regional Health System Board of Commissioners openly endorsed Greenville-based University Health Systems of Eastern Carolina as their preferred management entity for the financially distressed Beaufort County Medical Center and its affiliated practices.
One board member said he’d favor keeping the hospital in local hands, while six other commissioners declined to express a preference or said they hadn’t reached a conclusion.
The two members advocating for UHS were Grace Bonner and Edwin M. “Sandy” Hardy, both of whom have made their views known in previous interviews or meetings.
Bonner doesn’t serve on the negotiating team designed by the full board to winnow down its choices as it explores lease, purchase or management agreements with four suitors interested in taking over the county-owned hospital.
Bonner came out for UHS early in the board’s hunt for health-care groups with which to ally.
“I have no problem with the UHS offer to own the facilities after 20 years,” Bonner said. “I think UHS is the way to go.”
She added that, throughout eastern North Carolina, UHS has been able to “provide better health services than smaller hospitals can provide.”
In voicing his opinions, Hardy apparently referred to a proposal by Community Health Systems of Franklin, Tenn., which has offered a 30-year lease to manage the hospital and a prepayment of $30 million, evidently the largest offer on the table.
“My priority is health care, not cash now and sell out health care for 30 years,” Hardy said. “Quality of health care is my No. 1 priority.”
He made it clear he is “totally in favor of” UHS.
Board member Howard Cadmus said he would like to keep the hospital under local control.
“Keep the hospital,” declared Cadmus, who owns a medical facility that isn’t tied to the hospital.
“It’s a viable entity,” he said of BCMC. “If I could get the money, I would buy it myself.”
Cadmus called the way in which the hospital has been managed “a travesty to the county,” and asserted the medical center could be profitable with more aggressive collections of payments due.
Cadmus said $28 million hasn’t been collected, though he didn’t elaborate on that point.
Recent financial statements have listed BRHS accounts receivable, or money owed BRHS, as high as $30 million. About half of this, however, has been deemed uncollectable for various reasons, according to previous discussions by the BRHS board.
“How’s this such a big loser?” he asked of the hospital. “I can’t understand it. I’m just a simple businessman, I’m not a politician.”
Other board members said they were following an attorney’s advice by turning down requests for comments on the hospital’s future.
“We’ve all been advised by our attorney to register a no comment to the media regarding our negotiations,” said Alice Mills Sadler, chairwoman.
Sadler encouraged people not to listen to rumors about the medical center or alleged conflicts of interest among BRHS commissioners.
“Try not to listen to the rumor mill because that’s exactly what it is, a rumor mill,” she said. “It serves no purpose except to sell papers. We’re trying to move this process along as quickly as we can.”
Asked whether she was aware of any conflicts of interest on her board, Sadler responded by saying, “Not that I’m aware of.”
Dr. Brenda Peacock, vice chairwoman, also waved off a request for comment on the suitors, but didn’t dismiss the question outright.
“I’m not comfortable discussing that because the entire board has not even debated all of the options,” Peacock observed. “We probably have two that we’re favoring.”
She didn’t name the two suitors that could win the board’s favor, but UHS and CHS are widely considered the unconfirmed front-runners.
Peacock said three entities still are in the game and are expected to return for second interviews in the next couple of weeks, if the holidays allow.
Asked to list her priorities in a merger or any other kind of outside arrangement with the medical center, Peacock pointed first to the hospital’s employees.
“Maintaining employees and their level of service, and maintaining the hospital at least as productive as it is now with all of the services that are provided now,” she said of her targets.
BRHS Commissioner Clifton Gray said he didn’t have enough data to make a call.
“I’m not at the point where I’m able to make a determination about any health care entity at this time,” Gray remarked. “I don’t have enough information. We’re still gathering information and talking with the various providers. That question … calls for conclusions that the board, the county commissioners or the hospital board has already decided — that they’re going to vote for one of the providers as opposed to remaining independent. That decision has been made. It’s just at a stage where we are gathering information and don’t have enough information to make a decision one way or another, whether that would be merger or independent.”
Because the county owns the hospital, the Beaufort County commissioners will have the final vote on any deal with a new BRHS partner.
Asked to reveal his favorite suitor, board member Allen Roberson replied, “You know I can’t tell you that.”
Roberson said he liked “a couple of them,” but wouldn’t go any further on this issue.
Roberson’s colleague, Suzanne Gray, implied any definitive statement on a partner would be premature.
“I would be remiss in making any comment at this point because we are still in the negotiating process,” Gray said.
She said she is “still very open to listening to the people who have taken the time to present an offer for us.”
Hood Richardson, the BRHS board’s secretary-treasurer and a county commissioner, had no comment on this subject.
“I have no problem with the UHS offer to own the facilities after 20 years.” Grace Bonner, BRHS board member
“My priority is health care, not cash now and sell out health care for 30 years.” Edwin M. “Sandy” Hardy, BRHS board member
“Keep the hospital. It’s a viable entity. If I could get the money, I would buy it myself.” Howard Cadmus, BRHS board member
“Try not to listen to the rumor mill because that’s exactly what it is, a rumor mill.” Alice Mills Sadler, BRHS board chairwoman
“Maintaining employees and their level of service, and maintaining the hospital at least as productive as it is now with all of the services that are provided now.” Dr. Brenda Peacock, BRHS board vice-chairwoman
“I’m not at the point where I’m able to make a determination about any health care entity at this time.” Clifton Gray, BRHS board member
“I would be remiss in making any comment at this point because we are still in the negotiating process.” Suzanne Gray, BRHS board member
“You know I can’t tell you that.” Allen Roberson, BRHS board member
“No comment.” Hood Richardson, BRHS board member