OCH Regional Medical Center is pushing back against a press release supervisors issued Tuesday after a lengthy review of bids the county received for the publicly owned hospital.
Hospital CEO Richard Hilton said the release, which only contains limited information and does not reveal information such as how many bids the county received, what organizations bid, or how much the bids are worth, fell short of supervisors’ promises of transparency.
“What I had seen that had been released on some public media posts was that the supervisors were going to be releasing some significant information for the voters to have,” Hilton said. “With what they put out there, I don’t think they delivered on what they were saying was going to be made available to the public.”
The Dispatch has filed a public records request for more documentation on the bids with Oktibbeha County — including the names of bidders and the amounts of the bids. The newspaper also has requested, in keeping with open records law, the county provide statute with any explanation of why it cannot release that information.
Supervisors have cited a confidentiality agreement that prevents the county from disclosing more information about the bids. The Dispatch has also requested copies of those contracts.
Trainer: ‘Best to wait and see’
Board President Orlando Trainer maintained the confidentiality agreement defense in a Wednesday interview with The Dispatch.
“We try to do everything we can in the public light as it relates to what the public as it relates to what the law says,” Trainer said. “We’re not doing anything, I don’t believe, that’s in violation of what state statute says as it relates to handling information of that kind.
“Before you put out a lot of information that could be misleading, in this case, I think it’s going to be best to wait and see how everything shakes out,” he added.
District 1 Supervisor John Montgomery said he understood public concerns about a lack of information. He said he’d like to see more information released, especially with a Nov. 7 election pending on whether to sell or lease the publicly owned OCH. However, he noted the county may be limited in what it can put out.
“I’d like for as much information that can be to be put out there for the people,” he said. “The more information you have, the more educated your decision. Anything that can be put out to the public, I want to see it — it’s going to be their decision.
“I get that it’s not out there,” he added. “I’d like to see it out there soon, but I can’t promise a date. As soon as we can get it out there legally, I’d like to.”
Hilton said the hospital has provided 96 percent of the information that’s been requested for an online data room for bidders. He said the hospital has not included some information, such as payer contracts with insurance providers that OCH is barred from sharing due to non-disclosure agreements, and peer review information that is kept private. He said the hospital is also working on compiling corporate compliance information and minutes from executive committee meetings.
“I don’t think those things are critical things that would keep somebody from bidding,” he said. “It may be it’s something they would need to have before they close on their bid.”
Further concerns
Hilton also questioned a point in the press release that says a sale of the hospital could generate at least $25 million for the county after paying for about $35 million in hospital bonds. Those bonds are made up of $11.8 million in a 2002 revenue bond and about $23.2 million for a 2009 bond issue for hospital improvements.
Hilton said he wasn’t sure if the hospital’s bonds, which have a 10-year call date, could be paid immediately on the sale of a hospital. If not, he said, any payment would have to account for interest, on top of the base amount for the bonds.
“What is really going to have to take place?” he said. “I guess the question is can those bonds be paid off immediately or do they have to be escrowed? If they have to be escrowed, then that means all of the interest has to be put into that escrow account.”
Hospital morale
The prolonged process has cratered employee morale at the hospital, Hilton said, and he questioned if the bidders’ promise to retain employees and otherwise promote employee retention would hold up.
He said a potential buyer might keep employees for year, but allow them to move on through natural attrition. A private system would also likely consolidate administrative functions, such as human resources, payroll, billing and other services, to a centralized location, he said.
“That will happen,” he said. “Every system has adopted that methodology because that’s one of the ways they can find economies of scale. Because that’s what I would do if I was on the other side.”
District 4 Supervisor Bricklee Miller questioned the hospital’s financial stability, referencing a $5.1 million loss for the current fiscal year so far.
“Mr. Hilton talks about the loss in community hospitals being common, but that doesn’t mean it’s OK for the taxpayers that are holding a $24 million debt,” Miller said. “Our county has the opportunity to be part of a nationally-recognized system without the risk or burden to the taxpayer.”
Hilton also questioned a point in the press release that said bidders will improve clinical care and access in OCH’s service area. He pointed out that OCH’s service area includes Oktibbeha County and its six bordering counties. If a private system purchases the hospital, he said, improvements to the service area do not necessarily mean changes will come to Oktibbeha County, he said.
Trainer contended that OCH’s scope already extends beyond the county, and that wouldn’t come as a surprise.
“We have a regional medical center,” Trainer said. “That’s what the name says. We have to go beyond the scope of the county, based on what’s in the name. Our scope should go well beyond the borders of Oktibbeha County. I guess I would have to look at what the definition of a region is, but it’s bigger than a county.”
Alex Holloway was formerly a reporter with The Dispatch.
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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.
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From left, Richard Hilton, Orlando Trainer, Bricklee Miller and John Montgomery
