By Keith Purtell

Phoenix Staff Writer

A Chicago law firm will help Muskogee Regional Medical Center negotiate a change in governance with two candidate companies.

The MRMC board met Tuesday and voted to select the McDermott Will & Emery law firm as lead counsel. The other company under consideration was Crowe and Dunleavy.

McDermott Will & Emery will represent MRMC in dealings with Community Health Systems (Brentwood, Tenn.) and Capella Healthcare Inc. (Franklin, Tenn.).

Wayne Wilburn, a member of the board of trustees and the executive committee, said the board quizzed both companies about their fees, experience in this type of transaction and what kind of staff resources they had available.

“The firm we chose has handled about 50 transactions like this in the last four or five years,” he said. “It will save us time and money to be represented by a firm that has a lot more experience in hospital transactions.”

Wilburn said both legal firms had indicated they would participate in community forums to answer questions about the hospital’s change in governance.

Wilburn recused himself from much of the meeting because one of the law firms has done work for his employer.

Board member Dr. Tim Holder said MRMC will pay a “blended rate” of $393 per hour to McDermott Will & Emery.

“By paying them an hourly rate, we know it is for work performed,” he said.

Total legal fees for the transaction are estimated at between $150,000 and $450,000. Holder said McDermott Will & Emery was able to deliver services well under their estimate when it handled the deal for Community Health Systems when they acquired Ponca City Medical Center.

The company also handled a similar transaction for Hillcrest Medical Center in Tulsa, Holder said, and their experience with Oklahoma law was one reason they were selected.

One of McDermott Will & Emery’s first tasks will be to draft letters of intent for Community Health Systems and Capella Healthcare Inc.