Campbell Health Systems--6/21

UPDATE: Campbell Health Systems rejected the E$$ent overture and selected CHS to lease their hospital 6/8.

Campbell Health Systems seems like a nice, little, non-profit (county owned) hospital. They're apparently starting to look at the bottom line and worrying a bit. Probably thought that looking into a management deal, or a lease from a for-profit would reduce the drain to the taxpayers/government.

Our experience with an external management team was with what is now our "North Campus." They got into trouble when the folks from Presby-Dallas came in with an attitude that they knew how to fix things. They went from making a little to losing a lot. The hospital had a building program on track to expand the physician offices--that went off track when there was no need and plenty of vacancies. Raising rent and demanding 3-5 year leases didn't do them any favors. That actually started the cascading effect that landed us with Essent.

1. The Parker County Hospital District board of Directors will receive information from administrators, employees, and medical staff members of Paris Regional Medical Center, as well as, past and present members of the Paris Regional Medical Center regarding Essent Healthcare and other groups that have submitted proposals to lease Campbell Health System. The Parker County Hospital District Board of Directors will not vote on whether to lease the Hospital to any entity during this meeting. THIS IS AN INFORMATIONAL SESSION ONLY.

2. Executive Session: The Parker County Hospital District Board of Directors will enter into Executive Session Pursuant to Section 551.071 and 551.072 of the Texas Government Code. The following will be discussed:
A. Consultation with attorney regarding potential lease of real property located at 713 E. Anderson, Weatherford, Texas

3. Return to Open Session (There will not be a vote on any item)

4. Adjourn

In a way, you can't blame them, sloughing off the responsibility to a for-profit for making the changes that are needed puts a buffer between them and the actions (staff reductions, salary compressions, and the like) of their "tenant". And half million dollar expenditures for CTs kind of took the wind out of their sails, along with room modernizations. The sixth floor here probably impressed them--if so, they impress easily.

May I suggest that before they go down that road, which leads to an outright sale, they take a deep breath and look at other hospitals that have remained non-profit, but were able to make the changes in operation and attitude that would increase their efficiency. The largest barrier is the attitude that "we don't have to make a profit..." Sure you do, it's just the way you spend it that's different. On salaries, equipment, indigent care, or whatever, instead of dividends.

The organization that supports them is not a money tree, so self-sufficiency is the goal, not working on an allowance. Both parties resent it--the payers that they have to keep supporting it, the payees that they have to keep asking for it. Deep pockets help, but selling your soul to Essent doesn't.

They might do better there than in Paris, however. They were more comfortable in that size hospital--although Crossroads was that size and they were only profitable in one year out of five...and Wentzville, Mo has some interesting similarities to Weatherford. Hopefully they don't have the same fate.