MRMC picks final suitors

By Keith Purtell
Phoenix Staff Writer

October 14, 2006 12:48 am

— Muskogee Regional Medical Center must remain a regional health system.
That’s according to Dr. Timothy Holder, speaking after the MRMC Board of Trustees voted unanimously to consider two companies to take over the city-owned hospital.
After emerging from executive session, the board announced that the two companies remaining on the list are Community Health Systems (Brentwood, Tenn.) and Capella Healthcare Inc. (Franklin, Tenn.). This eliminates Signature Hospitals and Essent Healthcare, Inc.
Although MRMC is in good financial condition, it faces a shortage of doctors and nurses, and increasing competition with other hospitals that have drawn patients to areas such as Tulsa.
Holder said each company must offer certain values to the community in order to earn final approval.
“One of the things they will bring is a commitment to clinical excellence,” he said. “They must all believe in establishing best practices, also be very aggressive in physician recruitment to bring physicians to this community, and expansion of services to allow us to grow beyond where we are now.”
Capella Healthcare is privately owned and owns four hospitals in three states, including Southwestern Medical Center in Lawton. Community Health Systems operates 76 hospitals in 22 states including Ponca City Medical Center.
MRMC Board Chairman Chris Condley said both companies have given “strong indications” that they might also enter into some kind of joint venture with physicians.
Such a joint venture would be a “key community benefit” in terms of unifying the medical staff, according to Jim Blair, chief financial officer and co-CEO.
When MRMC contracted with Chicago-based consulting company Juniper Advisory LLC for a study of the hospital’s existing status, their report contained references to strained relationships between hospital medical staff and administrators.
Condley said the executive session included discussion of how each of the original four companies ranked in relation to the board’s “scorecard.”
“We ranked the health care for our community, how can they stop the outmigration, what’s their commitment to capital, what’s their commitment to the employees, their care for the less fortunate, will they support doctor and nurse recruitment, and what is their track record; are they predictable,” he said.
Condley said the best candidates needed to be able to get financing for this deal. He also said the board looked at each company’s city impact; jobs, growth, tax revenues, the future of the Muskogee Regional Medical Foundation.
Board member Wayne Wilburn, also a member of the executive committee, said the final candidate will provide capital and services.
“Also strength of management and longevity,” he said. “And the history they’ve show us with the hospitals they have.”
The final decision will be up to city leaders. Mayor Wren Stratton said she envisions a point in the process where the MRMC board of trustees meets publicly with the Muskogee City Council. Citizens will have an opportunity to voice their opinion at that time.
“The bottom line rests with the council and mayor,” Stratton said. “But also we have charged the board with the responsibility of making good recommendations to us.”
Stratton said she doesn’t yet have a strong preference for whether the hospital is leased or sold, because both options seem to have an equal number of pros and cons.
“Once all that is done, the next big decision for the city to make is what to do with the money,” she said. “There are several options.”
Reach Keith Purtell at 684-2925 or kpurtell@muskogeephoenix.com.