PR releases....PR: Connery said he was prepared for public scrutiny.
frank:You asked for it, you got it.
PR: To tell the difference between diamonds in the rough and lumps of coal, Connery says he relies on his instincts and something he calls "experiential capital," meaning his experiences as chief operating officer of HealthTrust, a company that owned 110 hospitals before being bought by HCA.
frank:Now remember, this is the guy that sued HCA unsuccessfully,twice. He stayed with HCA how long after acquisition?
PR: Essent has acquired Crossroads Hospital in Wentzville, Mo., formerly known as Doctors' Hospital, and Merrimack Valley Hospital in Haverhill, Mass., which was previously called Hale Hosptial. Those hitherto financially failing institutions, Mr. Connery estimates, should turn a profit of at least 12 to 15 percent within two years.
frank: Is this relying on his fabled 'instincts'?? Crossroads failed miserably, MVH lost money in 2005, and none of the hospitals are returning a net of even 10%.
PR: After all, the company he leads, Essent Healthcare, has grown its revenues to $300 million this year from $20 million just three years ago.
frank: It really doesn't matter what your gross is, it's the bottom line, folks. The retailer that sells something at cost, but gives a quantity discount because he'll 'make it up in volume' must attended the same school as Hud.
PR: “We’ve made significant investments in Crossroads over the past five years, including the construction of three medical office buildings, renovations to the emergency room, and a new 3,000 square-foot outpatient physical therapy facility,” said Bill Heburn, executive vice president, operations, Essent Healthcare. “Despite these significant investments, Crossroads posted a positive operating income only one year out of the five we’ve owned it."
PR: It would be easy to forget that Hud Connery Jr. is a patient man.
frank: Or running scared. If he'd bailed on Crossroads when it was obviously a loser, it would have been all over---he just made it look better than it was until he could pick up Sharon Hospital and NVMC. (Enron could have taken lessons!) Dumping Crossroads after he doubled the gross made it easier to swallow for investors.
PR: Connery said he was prepared for public scrutiny.
PR: The chief executive officer of one of four suitors seeking to purchase Muskogee Regional Medical Center said he will answer any questions from the board, but not in public.
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