Oktibbeha County supervisors voted 3-2 Tuesday to invite lawyers from the Jackson-based legal firm Butler Snow for an initial consultation about how to continue a process that could lead to the sale of OCH Regional Medical Center.
Although supporting supervisors set no parameters or a specific date for the upcoming discussion, District 2 Supervisor Orlando Trainer said legal counsel could advise the board on a significant recommendation made by hospital analyst Stroudwater and Associates: how to develop a request for proposals that would seek deals for the publicly-owned health care facility.
Trainer, along with District 4 Supervisor Bricklee Miller and District 5 Supervisor Joe Williams, supported Tuesday’s motion. It was opposed by District 1 Supervisor John Montgomery and District 3 Supervisor Marvell Howard, who both previously called for supervisors to halt any further discussions on OCH’s future.
“RFP talks should be encompassed in the discussions since that’s the next step if the board wants to move forward,” Trainer said. “We need to assemble a team — the hospital can be included if they so choose to be — to move forward. It shouldn’t be about how to destroy the process; rather, it’s about how to move it forward. If we get proposals, then we can make a determination.”
The county is not expected to incur any costs with inviting Butler Snow for discussions, Trainer said, but such a move could set up a deal in which a majority of supervisors task the firm with tailoring a RFP for OCH. Such a RFP, he said, could set specific requirements from outside organizations, including guarantees on staffing levels, services and even a partnership that does not fully transfer the hospital’s control from the county.
“This process is very delicate. People already assume that Baptist (Memorial Health Care Network) and North Mississippi (Health Services) have an inside track. To me, there’s a whole different avenue in which a non-affiliated member could come to the table that gives us a completely different perspective to consider,” Trainer said. “We may not get proposals (based upon stringent RFP requirements), or we may be flooded. I think we should move forward. We need to run the process all the way through before we can make a decision on what to do — keep, lease or sell.”
After Tuesday’s meeting, Howard said he was troubled by the lack of clarity offered on the proposed Butler Snow meeting.
“Nothing has been defined. To be honest, I’m not sure what we’re bringing counsel in for other than to develop the RFP,” he said. “I don’t think it should be handled this way. I’m sure you’d want to get input from the public, hospital administration, trustees and the public first so the board can get a feel from the public on exactly what it wants us to do.”
The Stroudwater report
Stroudwater’s report suggested the board “explore transactions as soon as is practical” while OCH continues to improve its sustainability in case a sale or lease option isn’t available. It suggested the hospital has an annual $3 million to $4 million between current operating levels and the amount needed for capital investments to occur, but OCH Chief Executive Officer Richard Hilton said the Tennessee-based firm’s report was filled with misleading data that failed to follow generally accepted accounting principles, understated the hospital’s income and overstated its revenues.
Stroudwater suggested the hospital could fetch between $20 million and $60 million in a transaction, but state law would require proceeds first retire about $25 million worth of outstanding debt.
Last month, the Greater Starkville Development Partnership Board of Trustees joined hospital trustees and a group of OCH doctors in opposition to continued transaction discussions. The talks, board President Michelle Amos wrote in a letter to supervisors, create instability in the hospital system.
Trainer, who represents the board of supervisors on the Partnership board, said a transparent, open discussion on OCH’s strengths and weaknesses and how the hospital improves its long-term standing, should prove beneficial for the community.
“People mention this dilemma isn’t helping us in recruiting. I see it differently. Trials just make you stronger. Even if we don’t do anything, I think this whole process will make us better,” he said.
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 36 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.