"Coastal Carolina losses could top $7M"
(Note: CCMC is a LPNT facility)
islandpacket.com June 27, 2007
Coastal Carolina Medical Center is projected to lose more than $7 million over the two-year period from the beginning of 2007 to the end of 2008, a far bleaker financial outlook than previously disclosed.
Despite the Hardeeville hospital's financial situation, Tenet Healthcare Corp. moved a step closer Friday to acquiring the 41-bed facility, according to state documents released Tuesday.
The deal would consolidate all major health care facilities in southern Beaufort and Jasper counties.
All that stands in the way of the transaction that would unite the 93-bed Hilton Head Regional Medical Center and Coastal Carolina Medical Center is state approval and other minor conditions, several sources confirmed this week.
"The transaction will close once the parties obtain the necessary regulatory approvals and certain other conditions to closing as set forth in the Purchase Agreement," according the document, which was submitted to the state Bureau of Health Facilities & Service Department on Friday.
The documents, filed with the state by Tenet, showed that Coastal Carolina is projected to lose about $5.2 million pre-tax in 2007. Those numbers are forecast to improve in 2008, but the hospital still is projected to lose $2.4 million before taxes.
Internal documents obtained in March indicated the hospital was profitable last year, with a pre-tax operating surplus of about $2 million, but those documents didn't include depreciation, interest expense and other capital expenses.
If acquired by Tenet, the hospital is projected to have gross revenues in 2007 of $72.5 million and in 2008 of $82.4 million.
Teresa Wolke, a Tenet spokeswoman, declined Tuesday to comment on specifics of the deal.
"We're not going to talk about internal discussions at this point," she said.
Officials from Coastal Carolina and its Brentwood, Tenn.-based parent company Lifepoint Hospitals, declined to comment Monday and Tuesday.
Eric Deaton, Coastal Carolina's CEO, did not return several calls to his office and cell phone this week.
Penny Brake, vice president of finance for Lifepoint, is handling all media inquiries regarding the deal. She did not return several messages left with her office Monday and Tuesday.
For the purchase to move forward, it must receive approval from the state. In its filing Friday, Tenet asked the state to waive traditional certification requirements, a request that if granted would expedite the transaction, said Joel C. Grice, director of the Bureau of Health Facilities. He said last week that approval could come in a matter of weeks.
The terms of the acquisition remain uncertain, but the transaction will be made in a stock purchase agreement.
Much larger hospitals that Dallas-based Tenet has sold in the last two years fetched anywhere from $16.5 million for a 190-bed hospital in Pennsylvania to $90 million for a 303-bed hospital in Florida, according to the company's filings with the federal Securities and Exchange Commission.
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Other news items from the Nashville Post:
http://www.nashvillepost.com/news/2007/6/27/morning_links_27_june_2006
http://www.nashvillepost.com/news?categories=Danville%20Regional%20Medical%20Center
http://www.islandpacket.com/news/local/story/6564931p-5843464c.html
Could someone cut through this? Coastal Carolina is one of LifePoint's hospitals, I gather, and is losing money seriously. I wish someone would play it out here. Sorry to be dumb, but I guess I am because I live here and work for LifePoint.
...and John Ellis Bush (previous governor of Florida-brother of Pres. Dubya) is on Tenet's board of directors. According to SEC filings,he has received stocks- valued at over $399 K- just this year as gifts from Tenet. Tenet is ranked the 2nd largest hospital corporation in America, and paid a hefty fine in 2003 for unecessary cardiac proceedures assigned to patients and billed to insurance.(Reckon anybody died?) SEC also applied a short probationary period for the corporation which has now been released. There was quite a "buzz in the market" when Tenet went "off the respirator".(There have been other investigations too)
Isn't it ironic that taxes, interest, and depreciation, which were left out of the profit/loss statement during preliminary negotiations, become larger negatives once they are finally tallied? (Of course this will devalue the hospital somewhat. But they will have a monopoly in the market-by owning all the facilities-quite a ripe piece of fruit!-at least for a short while!)
It will be interesting to see how many Virginia hospitals Tenet decides to acquire......it will also be interesting to see if the Tenet Stockholder List gains some of the jump-the-Lifepoint-Ship- Stockholders!(Could be the senior stock options that just sold-and were gobbled up)
These guys are all "masters of disguise" Could be, that when one vehicle gets dirty or starts sputtering, they switch cars! Lifepoint has been sputtering a little lately.
Could be....We are all Batmans and Robins as we try to decide who the Joker is parading as this time! Especially when the SEC provides all the wigs!
"Now off to the batmobile, Robin, time to investigate some big oil money investments! Glad we got that new windsheild of transparancy though.
Things are becoming much clearer now! Ya know Robin, you and Batgirl could've become very rich if I had become President ...except I fight corruption.....
and just think, voters think I'm the one wearing a mask! Now, get the map out, we need to stop by the SEC and see who Jeb's buddy is! By the way, get Superman on the bat-phone, he'll have an inside track on the newspaper hipocracy.....and see if Batgirl has time to check out those out-dated Florida voting machines used while Jeb was Governor there."
No pun intended, honestly, but it just keeps getting deeper doesn't it? Ya just gotta laugh sometimes to keep from crying. And Americans wonder why we have skyrocketing healthcare costs and are ranked so low in quality of care....compared to other countries.. Duh....when profits go to dividends instead of upgrading technology, staffing, education.....and FBI are reporting large increases in white collar crime in healthcare...while executives keep getting larger and larger bonuses? Ya'd think somebody could find a pulse on the problem! Clue-Scoot the Rolex watch over first-makes it easier-and tell him to stop talking about his Mother's cooking so we can listen!
I am so very glad that we have a much Mightier Force than Batman or Superman to fight corruption like this.
It's just painful until they fall though.....and they will.
Keep Praying-Answers Have Started
Golden Rule-You always reap what you sew. They will too.
Sign Me-Just Another Analyst's Opinion
P.S. Hope Vanguard(large investor in Lifepoint) doesn't put any of those 401K's at risk until after the rinse cycle-boy would that be like rubbing salt in a wound. Lifepoint could come out smelling like Enron soup here!
http://www.answers.com/topic/lifepoint-hospitals-inc?cat=biz-fin
HCA set LifePoint free. As part of a restructuring initiated in response to a federal fraud investigation, the US health care giant spun off its America Group hospitals as LifePoint Hospitals. The company operates some 50 hospitals (about 6,000 total beds) located in non-urban areas where they are in most cases the only available acute-care facilities. Its hospitals are located in 19 states, with the heaviest concentrations in Alabama, Kentucky, Louisiana, Tennessee, and Virginia. The company participates in the HealthTrust Purchasing Group, which negotiates competitive contracts on supplies and equipment.
Just an example, if you can figure out this mess you are indeed smart and patient. Lifepoint was a spinoff from HCA. Basically they were allowed to form and be exempt from federal prosecution. Many places you will see the 2 companies selling hospitals to each other. Looks like a lot of "shell games" going on to hide lord only knows what.
https://www.fundinguniverse.com/company-histories/LifePoint-Hospitals-Inc-Company-History.html
Great reading about the creation and history of Lifepoint...
http://www.islandpacket.com/news/local/story/6564931p-5843464c.html
Here's whats on the above link:
Thanks Sentinel Event....
Remember LFPT is trying to sell a "troubled" hospital to Tenet. Sounds as if one is about as bad as the other, Could we be next?
Local and national experts are split over whether the consolidation of local hospitals will ultimately benefit the patients they serve.
Web Extras
Blog with reporter Peter Frost about Coastal Carolina
As more details emerge about Tenet Healthcare Corp.'s plan to purchase Coastal Carolina Medical Center in Hardeeville, questions have arisen about what the move could mean to local health care.
Of the 11 local physicians interviewed over the last several weeks, more than half said they are nervous about what a deal might do to their private practices.
Many of their patients, they say, will refuse to be seen at a Tenet facility and would rather drive to hospitals in Beaufort or Savannah. Those patients, doctors say, have either had bad experiences with Tenet hospitals or refuse to go there because of concerns about the company's reputation.
At Tenet-owned Hilton Head Regional Medical Center, problems that occurred in the hospital's cardiac catheterization lab between 1997 and 2000 resulted in lawsuits and fines. The hospital self-reported those procedures -- which were not allowed under state regulations -- to state health officials in 2000 and paid a $24,200 fine a year later. Two lawsuits are still pending.
Physicians whose patients refuse care at Coastal Carolina after the potential purchase would either have to apply for privileges at hospitals in Savannah or Beaufort or risk losing those patients to other doctors.
Other physicians say a Tenet purchase could provide a much-needed financial boost to the Hardeeville hospital, which they say has limited services and equipment. Several doctors who practice there said the facility has been running on a shoestring. They questioned its lack of an obstetrics department and certain imaging equipment, and complained about staffing levels on overnight and weekend shifts.
If Tenet succeeds, those doctors say it could bring more services and equipment because the company has deeper pockets.
Dr. Neil Love, medical director at the Hilton Head hospital, said most doctors are taking a "wait-and-see approach." He said some physician groups see an opportunity to expand their practices. For others, he said, it would result in little change.
"The Tenet naysayers tend to focus more on the corporate image and maybe not the local one," he said. "I can tell you, some of the services we have now we probably would have had a hard time acquiring without Tenet."
Jeff White, interim CEO at Beaufort Memorial Hospital, said a health care consolidation in southern Beaufort and Jasper counties could be beneficial to his 197-bed facility.
He said he's received numerous calls from Coastal Carolina physicians and patients nervous about the potential deal and inquiring about Beaufort services.
"They're mostly concerned about the unfortunate history Tenet has regarding health care," White said. "It seems the more involved (Tenet) becomes in health care delivery, the more problems they have."
White expects a deal would bring more patients and physicians to Beaufort.
White thinks Tenet's pursuit of the Hardeeville hospital is part of a short-term effort to "recapture the market share they're losing" to hospitals in Savannah and Beaufort.
Paula Harper Bethea, chair of Hilton Head Regional's board of directors, said if the purchase goes through, "it would be great news for the entire community."
"I think this is a unique opportunity to keep (Coastal Carolina) open, viable and improving and enlarging services," she said.
It's unclear what effect a consolidation could have on health care costs at either hospital, local and national experts said.
Acquiring another hospital in South Carolina could enhance Tenet's bargaining power with insurers, which could help lower some costs to consumers, said Alwyn Cassil, director of public affairs for the Center for Studying Health System Change, a Washington-based, nonpartisan policy research organization.
On the other hand, because Hilton Head Regional's more high-tech equipment and broader range of services requires more of an investment than Coastal Carolina has made, costs at the Hardeeville hospital could rise, she said.
The nonprofit's research found that hospital mergers appear to have limited benefit to the communities affected.
"Efficiency gains have been limited; little clinical integration appears to be occurring, while the implementation process exacts a cost on the institutions involved," according to the research.
In some cases, consolidation resulted in bed closures, reduction of services and the elimination of duplication in services. In others, the research found, mergers have led to further expansion of services.
"You're likely to see some integration of administrative side, including leadership, technical and other office support functions. But generally, it's much more difficult to integrate clinically," Cassil said.
"Due to the relatively small size of these two hospitals, I suspect it won't make much of a difference at all to patients."
https://www.fundinguniverse.com/company-histories/LifePoint-Hospitals-Inc-Company-History.html
Geez, guess the bank boys weren't so smart and intelligent after all. Who in their right mind would sell their beloved hospital to a bunch of bloodsuckers with this type of history. Danville has been sold down the river, literally.
Thanks for the link.
I would think by now they are sick, what should have been great legacies of community service and accomplishments. Now this is all they will be remembered for.
Greed has ruined many a good man.
Well I think that there is one obvious solution. The money in the foundation needs to be used to build a new hospital and just start over. Lifepoint is obviously committed to making life hell for all of us and they aren't going anywhere. I say the citizens of Danville and Pittsylvania county should start a petition just to at least see what the community thinks. There is a lot of money just sitting there waiting to be used.
I Timothy 5: 9-10
People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. For the love of money is a root of all kinds of evil.
One problem with using the money to start over: the boys at the bank warranted that they would not compete with Lifepoint as part of the agreement to sell.
Many people who have been reading some of the above posts, are probably still digesting all of it. Natural.
Although at first, some of the obstacles seem overwhelming, the good thing is that all is not lost.
The first good thing that has happened, is AWARENESS. It's very dis-heartening to continuously be smacked around, and not understand why and from whom. Now, we can at least have a better understanding of the battle. The information that each person learns here can be shared for good and correction. Much of it can be printed and shared. Possible remedies can evolve by working together, once educated.
If you read the above posts, and do the research, you'll also realize that much of the structuring and activities of Lifepoint have been done in a manner which has in essence been anonymous to the public. Kind of sheds new light on the validity of anonymous postings on this sight, huh?
Although, much of what we learn makes us very uncomfortable, .....
and it is serious........
truth is, it must be exposed, addressed, and changed. It will take a very strong stand to do this. But in reality, there is no choice. Corporations like this are on a road of destruction and corruption. History reveals that they have no sympathy or even the smallest regard for those they may use, hurt, torture, or destroy in the processes. They wait for the dust to settle, and then, they do it again and again. It is definately time for these things to change. For each of us to do nothing, is condoning preying on the innocent. There really is no "luke-warm".
Every patient, nurse, doctor, staff member, politician, community member, community leader,etc. has to take a strong stand based on true integrity. And we each must find the good common sense and courage to do it.....each and every day.....in every outlet possible.
How could anyone in their right mind still go to this hospital and trust that treatment they advise would really be the best?
Grant it, there are many good staff members there, but how do we know that tests are accurate, reported correctly, proceedures truly warranted, and records kept correctly?
How could we know that the medicine prescribed is even trully what we need?
Did I read all of it correctly? Do they also control the supply of tests, meds, etc.? And the choices are made purely on profitability?
No one in their right mind would go near a LifePoint hospital.
Thank the Lord for Annie Penn and Centra Health. At least we have a chance.
I'm new to this web page, but I liked the idea that we need to use the hospital sale money to create the finest emergency/transfer facility possible. It should be a place to stabilize trauma patients until they can be moved north or south.
It is very clear that LifePoint in not capable of EVER performing in an acceptable manner.
Lighten up. Doloresco is gone. All that's needed is a decent CEO. That's been the problem....what have we had? Five in two years, or some ridiculous number?
Get serious. NOTHING will fix what's wrong at Lifepoint. It is a sick place rooted in greed and arrogance. Doloresco was probably one of the better people at Lifepoint.
Doloresco may not have had people skills but I tell you he was honest and had good intent. he just did not communicate that. I would rather have honesty without the communication skills than the warm communication skills of Ms. McDaniels and RUTHless underhanded manipulations of individuals around her. Don't think the problems are solved because Mr. Doloresco left. He could have led to much repair had he not been constantly underhanded by Ms. McDaniels. She did her best at every move to assure he took the flack and she came out shining. She has no clue, is insincere and quite arrogant in nature.
Doloresco and McDaniels are Lifepoint Noobs. Nothing good could come from either one of them. Wake up. It was not the local CEO who made the decision to cut staffing back to nothing and rid us of our computer technology. Those were decisions made from higher up. A new Lifepoint CEO is not going to fix anything. Danville Regional Medical Center is ruined. Lifepoint will never have a home here. They should just pack it up and cut their losses.
Go back up and copy and paste the references of funding universe and answers http sites into your address bar. READ THEM and you will understand.
just curious.......anyone got any CEO candidates? that could bring the credibility and communication this place needs
How about Bob Ashby?
Update: Coastal Carolina has been sold to Tenet.
http://www.islandpacket.com/news/local/story/6570164p-5848559c.html
So, since 2004, the hospital has had three owners:
"Tenet is Coastal Carolina's third owner. The hospital, which opened in November 2004, was acquired by Brentwood, Tenn.-based LifePoint from Province Healthcare shortly before the hospital opened.
LifePoint officials didn't return calls to their offices Sunday. As of Sunday afternoon, the company had not released any information regarding the sale."
It must be a pretty easy gig to work in the media relations department at LPNT.
Step 1: Listen to voice mail from media
Step 2: Hit 'delete'
Step 3: Rinse and repeat
What's up today?
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