Outgoing CEO says changes a must
By Justin Jones: justin_jones@terrelltribune.com
While Pittman said in a written statement “The current hospital operators did everything feasible to make the hospital work under the current conditions,” in order for another operator to make MCT a financially stable institution, the city first needs to figure out a way to sell the building to an operator at a reasonable cost.
“Or at least revise the lease so that they [the city] assume the responsibility of the upkeep of the building,” Pittman said. “Repairs on a building, and particularly one the age of this hospital are inevitable but costly. It makes no sense to most people to sink money into a building that does not belong to them and that they are paying a monthly lease on.”
Lease agreement
The city of Terrell, which owns the facility, is leasing the hospital for a monthly base rent of $10,000, which goes into the city's general fund, according to City Manager Gordon Pierce.
“We've never had enough excess money to put into the hospital, it's leased to them and [it's] their responsibility to make improvements,” Pierce said. “But obviously we are going to look at different options as we progress in this process [of trying to find a new operator].”
Pierce added, to maybe alleviate that problem, that a possible option the city could take is structuring the lease to put the hospital up for sale based upon the amount of capital investment a person or organization would make.
However, taking that route right now would be illegal, according to Pierce, who said that is why Triad couldn't purchase the facility before Resurgence took over in 2004.
“We can't sell it. It has to be bid on and that's the reason why we couldn't sell it to Triad,” Pierce said. “What we are trying to find out from the attorney general is, if since this is a health, safety and public welfare [situation], can we negotiate a sell or lease. We had to go out for bids the last time and our attorneys are trying to confirm that right now. We can't sell city property to whomever we want. We have to accept the highest and best bidder. We are trying to see if we can waive that legally since this is a health and welfare issue.”
There is also the issue, or viewpoint from some in the community, that the city is a “slumlord” for not investing the money it receives from monthly payments back into the hospital for upkeep.
“I would object to it [being called a slumlord] because while the city happens to be the owner of the property, all of the maintenance and repairs are the responsibility of the tenant, not the city,” Pierce said in defending the city. “The city has never budgeted any money for maintenance and upkeep for that building.”
Pierce also said the lease agreement, which was drawn up by the city and the operator's attorneys, states that the tenant supervises the upkeep of the facility and that it was agreed to by Resurgence .
“It's just like you are leasing at Tanger,” Pierce explained. “A storefront, you are leasing from them but you are responsible for putting in the air, walls and taking care of all of the maintenance. It's the same as our lease. It's just like any landlord-tenant relationship.”
Indigent health care
But according to Pittman, for this relationship to last when and if a new operator takes over, you would have to ensure the entire burden of people who can't afford to pay health care is not on the shoulders of the hospital.
Pittman said it's time for the county to step up to the plate and make its criteria for helping indigent patients something within reason and not out of the reach of those who really need assistance.
According to some reports, the county budgeted $300,000 this year for indigent medical expenses.
In 2006, Candy Countryman, MCT director of business development, said there was $1.384 million in care for which Kaufman County residents couldn't pay.
“Indigent care and uncompensated care are not necessarily the same. Indigent care is somebody who really can't pay for it and really does not have the means to pay for their health care,” Countryman said. “Uncompensated care, they choose not to, don't get around to it or something comes up that's more important than paying that bill.
“There are people who just can't pay for their care and there are people who owe their deductibles and co-pays. Then there are some people who don't have insurance but can be making payments on their care.”
Progress being made?
Hopefully, residents in Terrell and surrounding communities will have a hospital in the future to make payments toward.
Since the announcement of the closing, rumors have spread like wildfires about potential new operators.
From what he was told, Precinct 3 County Commissioner Kenneth Schoen said he thinks some things are in the works.
“ I think what we need to do is kind of wait and let the process move through,” Schoen said. “I think there are some other people who are looking at a possible deal.”
Countryman has also heard of some activity.
“The only thing I know for sure is that some people have expressed interest,” she said. “Who they are and where they are I don't have the answer to that.”
In the meantime, Pierce said his only directions are to replace the operator of the hospital, hopefully within 60 days.
“Those are my only directions. It has gone unbelievably well. I meet with one major company Wednesday and another the following Wednesday,” Pierce said. “By then, I will be able to determine what we need to do to come up with a lease that will be acceptable to someone to operate the hospital. Whether we will be able to get all of that done in 60 days I can't promise, but that's certainly my top priority.”
And should any deal go down and the new operator intends to be successful, the support of the medical staff is absolutely essential, according to Pittman.
“While there are some very loyal physicians on our staff,” Pittman said, “we have also lost the support of some whose business ventures have taken priority over where they admit their patients.”
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