Thursday, November 23, 2006

Hard Questions...12/16


Last year, Merrimack Valley Hospital lost $87,205. They have been an Essent hospital for how long? Since 2001.

In retrospect, the first hospital (Crossroads) that Essent bought lost money for all but one year (out of five.) From the beginning, they put serious money into the hospital, but like the Titanic, it just kept going down.

Nashoba Valley made $537,676 last year, approximately the same percentage of return on their gross as PRMC. But, their Return On Investment (ROI) is far better, as the price was only $11M. They still have a little over a year to commit an additional $16M in improvements or a new structure. While ground-breaking for a physician's office building has occurred, we'll see how an actual replacement hospital shapes up in the next year. Kind of waiting until the last minute...maybe hoping for an exception to be granted? Or was the timeline on the new hospital completion left open--sort of like the lawsuit by the gay couple....

Sharon Hospital seems to be the cash cow of the organization: Approximately $3.7M from a gross of $98.5. And they got it at a price lower than that of NVMC ($16M outright and $8M more for improvements)! Guess it was worth waiting for--despite assuming liability for a toxic waste dumping problem in NY.

Paris had a total revenue of $363,370,383...yet only made $1.6M over costs. Maybe it's all those locums?

Southwest wasn't in the mix, but lost almost $2M. I imagine that there were some changes.

It should be interesting this year, since the cost reporting period is over and the figures should be posted soon. For those interested, AHD.com is the website.

My questions are many, but here is the predominate one: Do they really expect to turn around a hospital with some paint and TVs? That isn't the problem, but let's see what happens....

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