A consultant is advising Oktibbeha County supervisors to put the potential sale of OCH Regional Medical Center to a public vote.
Ted Woodrell, of Woodrell Consulting, made the recommendation in a letter submitted Tuesday via email to each of the county’s supervisors.
After an eight-point review of a Dec. 6 public hearing about the hospital, he also advises the board to continue to seek advice from the county’s legal counsel at Jackson-based Butler Snow.
“A decision to seek a referendum may be the best way to garner the entire community’s input,” Woodrell wrote. “This should be strongly considered and discussed with Butler Snow.”
The board hired Woodrell Consulting earlier in the year to assist supervisors and hospital administration in determining which firm would conduct an analysis of OCH — an analysis being the first required legal step before selling or leasing a publicly-owned hospital. Supervisors hired Tennessee-based Stroudwater and Associates, which submitted a report in October.
Stroudwater’s report stated OCH generates adequate cash flow to stay in operation and service its existing debt load on a standalone basis, but an annual gap of $3 million to $4 million exists between current operating results and needed levels of performance before strategic capital investments are considered. The report suggested supervisors seek transaction proposals for the hospitals, which has sparked fears in the community that the board will press ahead in an attempt to sell the facility.
In an interview, Woodrell told The Dispatch he believes the magnitude of the decision about whether to sell or lease the hospital or keep it as a publicly-owned facility compels a voter referendum.
“This is such a big decision that I suggested they go ahead with a referendum,” he said. “This is a huge decision for Oktibbeha County. I believe in the democratic process. Let the people vote.”
Supervisors will ultimately choose whether the matter goes to a referendum if a petition fails to gather enough signatures to force the matter.
Frank Davis, a former Starkville alderman and supporter of OCH as a publicly-owned hospital, is spearheading efforts to get enough signatures to force a hospital transaction to a vote. Davis recently told The Dispatch his effort is close to the 1,500 signatures required by law and will continue until it reaches 2,000 signatures.
Supervisor responses
Board of Supervisors President and District 2 Supervisor Orlando Trainer said he has no problem with a referendum if a petition gains enough signatures to force one. However, he indicated he might not be interested in the county voluntarily holding an election on the matter if the petition falls short.
“If they gather enough signatures, and it’s determined that they have an adequate number after the signatures are reviewed and vetted, I think we need to move to the next step as it relates to the referendum,” Trainer said. “If the level of interest is not there, I think that’s an indication to the board that we’re moving in the right direction.”
District 4 Supervisor Bricklee Miller shared Woodrell’s letter on her Facebook page Wednesday but declined to comment to The Dispatch.
John Montgomery, who represents District 1 and supports keeping OCH public, said he thinks the county should halt the process entirely. He said he also believes it would be prudent to wait to see what changes happen to health care on a national level, with Republican President-elect Donald Trump taking office next month, before considering any hospital transitions.
“I think it’s best we move on and let the people at the hospital go on with their daily lives,” he later added. “They’ve got big enough things to worry about without this cloud hanging over them.”
Overall, Woodrell said he wants to make sure supervisors have enough information before they decide what to do with the hospital.
“There are a lot of issues here,” he said. “My role is to help them make an informed decision. Whatever decision they make is fine by me, but I’m trying to get them the right information that allows them to make an informed choice.”
Hearing responses
On Wednesday afternoon, OCH issued a 75-page report in response to Stroudwater’s analysis. The report offers a point-by-point response to much of the firms’ report.
In the report, OCH says that it does not operate to “drive a high bottom line at the cost of the community it serves.”
“OCH provides over 80 programs that are community beneficial,” the report says. “Many of these programs are offered at no charge or at less than cost for making the programs and services available.”
In his letter, Woodrell touches on several issues that arose during the public hearing, from public testimony to the accusation that Stroudwater did not conduct a professional review.
Woodrell also pointed out differences in reports from OCH and Stroudwater can be attributed to methodology.
“The analysis provided by the hospital was generally an introspective/operational focus versus Stroudwater’s analysis, which was generally an external/market focus, which are significantly different methodologies,” Woodrell wrote. “Using these two different approaches, the numbers are not going to match nor should they.”
Alex Holloway was formerly a reporter with The Dispatch.
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