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Hospital owners exploring options
Published Saturday, March 14, 2009
Hospital owners are seeking other ways to secure bank financing in case the city won’t agree to extend its support.
“We’re looking at ways the bank could approve loan requests even if the city doesn’t go along with it,” said Gil McKenzie, a hospital investor.
McKenzie said Troy Hospital Doctors LLC., is seeking financing from Superior Bank. But, what’s still uncertain is whether the loan would be granted without city support.
“The approval could be based on the city’s decision,” McKenzie said.
The doctor’s group and McKenzie purchased the hospital last year from Attentus Healthcare. At the time, the city agreed to purchase the hospital property, if necessary, for $10.5 million, well below the appraised value of $18.5 million. Last week, the city was asked to increase that guaranteed purchase price to $15 million and Troy Mayor Jimmy Lunsford indicated he was not in favor of doing so.
Lunsford said the council will not discuss the issue until its March 24 meeting.
In the meantime, McKenzie said doctors are seeking other ways to finance a loan, and he is confident they will find one.
“If for some reason Superior doesn’t approve the loan, we’ll get the loan from somewhere,” McKenzie said.
McKenzie said investors have been looking for ways to meet the approval of Superior Bank without city support and exploring other lenders who may also require that option.
“Either way, we’ll be borrowing the money,” McKenzie said. “It just depends on how we borrow it.”
While exactly how or if the doctors continue ownership remains to be seen, one thing is for certain — each is ready to continue progress their ownership has made in the last year.
With a newly-elected Board of Directors, Chairman Chuck Wood said the new management is ready to continue moving Troy Regional Medical Center in the right direction.
“The one thing to realize is when the doctors bought the hospital from Attentus, (we were) trying to save the hospital,” Wood said. “And even over the last year, there’s been a lot of positives.”
Increased staffing, upgraded computer systems and infrastructure improvements are just some of what Wood said owners have put into the hospital since they took ownership.
With several new board members, Wood said what the group will do is not only continue these types of improvements but also bring fresh ideas to the table.
“We’re headed in the right direction,” Wood said. “...We’re going to be in great shape by the end of 2009.”
And while it’s not in the plans yet, Lunsford said should the city have to take ownership under the current agreement, which lasts until March 31, he isn’t sure how that would play out.
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Comments
Posted by muledeer (anonymous) on March 16, 2009 at 10:33 a.m. (Suggest removal)
I wish the doctors the best in their effort to gain financing. I am happy the city is not just jumping in as requested. In the end, the doctors need to be committed to this or it won't work. ALL doctors need to be supporting this in my opinion.
The staff at SARHA needs to get on board and realize the importance of Troy Regional Medical Center. That hasn't happened and until it does, the friction is not good for our community.
Posted by TU08 (anonymous) on March 16, 2009 at 11:07 a.m. (Suggest removal)
SARAH doctors are involved.
Posted by Jack_Bauer (anonymous) on March 16, 2009 at 4:40 p.m. (Suggest removal)
Ask Mr Obama for some $$
Posted by srenee (anonymous) on March 17, 2009 at 9:43 a.m. (Suggest removal)
How are SARAH doctors involved , unless they are now admitting to the hospital because a few years ago , they gave up admitting priviedges and even then did not support it like the others did. There is even another local physician that does not support the hosptial. Everyone in my opinion needs to be on board and be supportive. Troy needs this hospital!
Alot of the people out there that are so negative about the hospital, I can guarantee you are the very ones that are using the hospital because they have no where else to go!
Posted by muledeer (anonymous) on March 17, 2009 at 10:01 a.m. (Suggest removal)
I do know that SARHA doctors stopped their priveleges at the hospital. I am hopeful that TU08 is correct in that having been changed. I do know that the SARHA doctors were recruited very hard when the doctor's group was forming and to my knowledge there are NO doctors from SARHA that are participating in the group that have purchased the hospital. Furthermore, unless things have changed, they don't admit. I definately hope that has changed TU08 !
Posted by aisaj (anonymous) on March 17, 2009 at 4:43 p.m. (Suggest removal)
This is whats wrong with the world today, always blaming someone else for their problems, maybe if the head officials did not have million dollar salaries then maybe the hospital would have some money, I don't see anyone of them down grading their expensive cars or expensive houses since the hospital is suppose to have so many money problems, and if the registration staff attitude was not so nasty when SARHA try and send them patients them maybe they would have some patients. So why don't people stop blaming SARHA and put the blame on the ones spending all of the hospitals money.
Posted by Jsmith (anonymous) on March 19, 2009 at 9 a.m. (Suggest removal)
No hope for this hospital with present administration. Someone should investigate this CEO's past record with the other hospitals he worked at. Why was he fired from each of these places (including Troy)?
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