| << Back 7/16/08 HRMC is running out of time to get it right SMN There are plenty of smart people working to make sure that Haywood Regional Medical Center survives, and we believe strongly that it will emerge from this crisis. Big mistakes are being made, however, and two of those stand out: not relying on the physicians who are on the front lines of seeing patients; and not taking a hard look at the outcome of a worst-case scenario financial collapse. And as the hospital board tries to overcome these mistakes, time is not on its side. The future of the hospital — which means the physicians, the entire staff, and the buildings and equipment — is in doubt, and cash reserves are running critically low. Once doctors abandon ship, services are cut and the staff runs for a more secure job, Haywood County will be left with a shell of the hospital it once had. Recovery would be almost impossible. The problem with the physicians has been well-documented. Three left a hospital board meeting a few weeks ago when they weren’t allowed to talk. That incident, however, was merely symbolic of the larger problem, and that’s that the board seemingly is not taking into consideration the important role the physicians play in rescuing HRMC. Here’s the truth: unless it’s an emergency, people go to doctors to get treated, not to hospitals. These men and women are dealing with patients every day, patients who are asking about the problems at HRMC, patients who may be considering traveling to another hospital but have stayed with the physician they know. The physicians are the producers for the company, the ones who drive the dollars. If they choose to shutter their doors, so goes the hospital. A decision to survey physicians about the possibility of a merger or affiliation with a larger healthcare entity is a great idea. The board should go even further. Physicians — people well-schooled in confidentiality issues — should be encouraged to take part in board meetings and even committee discussions. As the future tips in favor of an affiliation or merger, many physicians currently on staff have experience working for these large healthcare providers. Their experience and insider knowledge of the ups and downs of working for these organizations could help negotiations. That expertise should be called upon. The second shortcoming the board and the administration have exhibited is its handling of financial information. We know it is second nature to try and paint a rosy financial picture, but that’s not what is needed at this time. This is crisis mode, and like survivors on a life raft, people have to know how long the water — the money in this case — is going to last. Once it’s gone, it’s gone. Last week the board voted to begin providing financial information based on simple expense and revenue projections. This will tell board members and the public just how long HRMC will be able to pay its bills. These projections need to play a key role in negotiations with potential merger partners. This is just good business sense. If the cash flow is good, those discussing the merger can take their time; if it is dire, then those talks need to take on a sense of urgency. The fact that some of this financial information is public will undermine HRMC’s bargaining position. That’s regrettable, but it’s the price a public hospital pays for relying on taxpayer-backed loans for its construction. One more point should be made: many of the new board members at HRMC are bringing a fresh perspective that is proving extremely helpful. Pam Kearney in particular is doing her homework and brings financial expertise that is tempered with a seemingly natural sense for what the public needs to know. Dr. Henry Nathan and Roy Patton have also added wise voices to the board debate. Operating in crisis mode, by its very definition, is extremely trying. Doing so under the glare of public scrutiny is even more difficult, as board members and the administration of Haywood Regional Medical Center are finding out. A few mistakes are expected during this process, and so what’s happened up to now can be accepted as a perhaps normal sequence of events in an extraordinary situation. But the holes in the life raft will only stand so much patching, meaning too many more mistakes could sink the whole ship. |
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