An out-of-state hospital analysis firm and OCH Regional Medical Center representatives will present reports on the future of Oktibbeha County’s publicly owned facility and its financial future 5:30 p.m. Tuesday at the chancery courthouse.
The Tennessee-based Stroudwater and Associates, whose report previously suggested supervisors “explore transactions as soon as possible” for the hospital, is expected to give a refresher on its October presentation. OCH Chief Executive Officer Richard Hilton said he will present the hospital’s own financial report in response.
Both sides will be allotted about 10 to 15 minutes for their presentations and are expected to field questions from the board of supervisors and members of the public.
“The hospital welcomes the opportunity to be able to tell its story. I’m not opposed to answering any questions at any time, whether in a formal meeting or outside of one,” Hilton said last week.
This summer, the county tasked Stroudwater with studying OCH’s financials and future market positioning, which is the first step required by law before a publicly owned health facility can be considered for a potential sale or lease.
The original contract called for professional fees of up to $50,000, and Stroudwater is expected to receive another $8,500 for the second public hearing on top of travel and out-of-pocket costs associated with Tuesday’s event.
Stroudwater’s report stated a lack of service scale, weak market positioning and margins, outmigration and quality scores versus cost position are all “compromising OCH’s future trajectory,” but investments in satellite clinics and systems needed for new payment models, operational improvement and the development of aligned clinical services in specialty areas could mitigate risks associated with the hospital’s long-term viability.
The firm estimated bids for the hospital could draw offers between $20 million and $60 million, but the revenue generated from such a deal by law must first be applied to OCH’s $24.8 million in outstanding debt obligations.
Besides scheduling Tuesday’s second public hearing, supervisors have taken no action on the hospital’s future.
A petition signed by 1,500 qualified Oktibbeha County voters could block a board-approved deal and send the issue to the ballot box at a later date.
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 43 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.