Health Authority selects Mercy as No.1 Choice for Midwest Regional Medical Center

[mmonroe]

Authority selects Mercy as No. 1 choice for MRMC - Eastword News - Midwest City, OK
================================================== ===============
Situation Recap

MWC city officials began questioning the quality of healthcare provided at Midwest Regional last year when patient and staff complaints were at an all-time high.

Around the same time, HMA started having financial problems and were facing allegations of Medicare billing fraud.

Talk of a buyout surfaced and before long, CHS became the new owner of HMA’s 70 hospitals, including MRMC.

The City started looking at their options months before CHS took over. In the lease agreement between the city and HMA, the Right of First Refusal would come into play if a new third party, like CHS, would ever take over operations of the hospital.

Last year, the city asked voters to grant access to up to $50 million of the compounded principal of the Hospital Authority’s funds. The voters approved the measure and the city proceeded in taking steps to find a new lessee of Midwest Regional. One step was to hire a consultant to help in the lessee selection process.

Hospital Authority members delivered their highly anticipated decision Tuesday on who they are going to pursue as their No. 1 choice as Midwest Regional Medical Center’s next lessee.

By a vote of 7-0, members named Mercy as their top choice and elected to pass on OU Health and Sciences Center and Community Health Systems, both of which had also responded to the Authority’s Request for Proposal notice to lease the hospital.

The Authority’s decision came after an hour long executive session. First up was the vote on whether or not the Authority was going to exercise their "Right of First Refusal." If passed, this would allow the Authority to terminate the hospital’s lease and reacquire possession of all the leased assets, the lease agreement between the Authority and Health Management Associates states.

The Authority voted 7-0 in favor of the "Right of First Refusal.”

In the second vote, members named Mercy their top preferred lessee option. Ward 4 Councilmember James Ray read the motion but with a change from what was originally listed on the meeting’s agenda. The Authority opted out of naming a second preferred candidate in the event the first candidate fails or refuses to enter into a lease.

After both votes, Mayor Jack Fry was the only member to address the matter.

"I'm recommending exercising the right as outlined in the 1996 agreement. Our objective of this effort is to change the culture and performance of the hospital. Our discussion with CHS, and the data, convinced us that CHS was not the best partner."

On Monday, Jan. 27, CHS became MRMC’s operator on Monday, Jan. 27, replacing HMA, after paying $7.6 billion for the hospital corporation.

Fry cited CHS’s unwillingness to commit to performance standards and pointed out that among the Oklahoma City metro hospital community, Deaconess, which CHS currently operates, was a weak performer.

"All other hospitals in the metropolitan area outperformed Midwest Regional," the mayor said.

Mayor Fry also explained the criteria city staff and the Authority considered identifying a new hospital partner. He said the evaluation was based on 1) quality care, 2) patient satisfaction, 3) investment in staff as measured by the percentage of revenue going to personnel, 4) revenue growth and 5) other financial measures.



Refusal details

To exercise the "First Right of Refusal," the lease agreement states that the Authority must put 5 percent of the purchase price of the hospital in an escrow account by Saturday, Feb. 8, Mayor Fry said.

As of presstime, city officials did not know what the 5 percent dollar amount would be as the final purchase still needs to be decided. City Attorney Kathy Bolles attributed this to the fact that another appraisal, in addition to the city's and HMA/CHS, was needed because the first two were "significantly different."

In the lease agreement, the group of three appraisers will determine by majority vote, the “Disposition Fair Market Value” of the hospital. The Authority and HMA/CHS will bear the costs and expenses of their own appraisers and will split the cost of the third.

The deadline has been set for this Monday, Feb. 3 for the third appraisal to be completed, Bolles told EastWord.

City officials also have set the closing date for the sale of the hospital for March 7, which is when the hospital’s operations will transfer to its new operator.

Look for more information in upcoming EastWord editions as it is available.
================================================== ===============


Mercy already has a clinic in Midwest City that moved in back in 2011.
Here is an excerpt from Mercy's website about the clinic:
================================================== ===============
Mercy is among only 4 percent of hospitals nationwide with an integrated electronic health record sophisticated enough to access and share medical records among multiple Mercy facilities in a four-state area. Serving more than 3 million people each year, connectivity between 29 hospitals and more than 200 outpatient facilities is critical.

In addition, MyMercy – a free online service – will give Midwest City patients the ability to check lab results, request appointments and prescription refills, and leave messages for their doctors – all from a computer or smartphone.

The surroundings and technology might be different, but the quality care patients have come to expect ... will remain unchanged.

Mercy Midwest City is located at 111 N. Post Road, Suite C. Clinic hours are Monday through Friday 8 a.m. to 5 p.m.
================================================== ===============

If Mercy can do this with just a clinic, the possibilities could be endless for a hospital like MRMC.

[MWCGuy]

I was expecting them to select Mercy because Mercy has the pockets to properly staff Midwest Regional and provide a first class level of service. The Hospital Authority best be ready to pony up some cash for renovations and upgrades. Last time I was in there, the place was dirty and many maintenance issues were present. I saw everything from wallpaper peeling, to burn out lights to old torn up furniture in the waiting areas. Granted Mercy will help finance the cost of that. (I know they did wonders with Parkview in El Reno) They will not do it alone, the hospital authority will need to help finance some if not all the upgrades and clean up the place.

[bombermwc]

I couldn't have asked for a better choice. Now I just hope that the plan sticks and than in a month from now, we'll still be on track for Mercy to take over.

Good riddance HMA! And thank goodness no CHS!!!!!

[Head]

I was hoping this would happen! Now, let's start upgrading, using local help(me)!

[bombermwc]

has anyone heard anything on this? The date for having the 5% down payment in escrow has come and gone.

[MWCGuy]

Mercy is in the process of reviewing everything in regards to the books and hospital operations. Basically doing the test drive, kicking the tires, etc. Initially CHS blocked Mercy and the city from entering the hospital however, the city took the matter to court and won. From what I understand from Eastword News that everything is looking good for Mercy to take over however, they could change there mind at the last minute. A final decision is due I think the first part of March. If nothing esle OU will take it or they might just have to begging at the doorstep of INTEGRIS or Saints to sign on. However, I don't think either want the facility without full or majority ownership of the facility. I don't think the Hospital Authority board is willing to do that.

[Wambo36]

I got a call yesterday from a polling firm who were asking a ton of questions about my opinion of the hospital(past and present) and who I would like to see take it over. I couldn't get a feel for who the poll was for and she couldn't say. Hopefully this thing gets done and the hospital can go back to what it used to be. As someone who works in EMS in this area, I can tell you that in the last decade or so, it's gone from being the "go to" hospital in this area to being the one nobody wants to be sent to.

[bombermwc]

I grew up with parents that worked there, family friends that worked there, I volunteered there...all when it was MCMH or MCRH. Now, I wouldn't take my dog there. Countless personal stories of friends with horror stories from the less-than-adequate doctors there now. The good ones all left because they couldn't put up with it anymore, and the ones they attract now, are sub-par. The staff is stretched so much, it's difficult for them to put their full attention on the patients.

It's as much an example of what's wrong with for-profit health care as there ever could be. When the city owned the place as non-profit, the dollars went right back into the patients and staff. The employees were part of a family. Like so many corporations, when the hospital was bought, the family divorced and the parents kept all the money and left the kids with the scraps under the table.

I just hope Mercy's new relationship doesn't turn south. Remember, they aren't an independent hospital anymore either......

[MWCGuy]

oo

[Drake]

That didn't last long. Mercy is no longer an option

[MWCGuy]

It's a shame that the city and Mercy couldn't come to an agreement. I think sooner or later the city is going to have to decide to either have a great hospital and dissolve the Hospital Authority. Or Have the Hospital Authority and have a mediocre hospital. Granted it will be ran better than HMA ran it but, not much. It will be ran just like Deaconess is ran. For profit hospitals are just not ran very well in this country.A healthcare facility should never be a for profit enterprise. It should be non profit, all money earned should go back into the facility for upgrades, employee pay and patient care. Profit to stock holders should never come before patient care. When profit is your focus you don't care about your employees, you don't care about the quality of your operation all that matters is that the facility makes money. At the end of the day if the hospital does not make money, the doors close and the people in the area stuck with having to find healthcare elsewhere and sometimes that's miles away in another city.

The only logical conclusion I can come to is that Community Health Systems promised the city they would dump money into the hospital and recruit better talent to the hospital. When Mercy, INTEGRIS, Saints and OU provide the best pay and benefits you are not going to hang on to the best people for very long. You are only going to get the lackluster employees from the competition and the new grads who are desperate to land work.

[HangryHippo]

It's a shame that the city and Mercy couldn't come to an agreement. I think sooner or later the city is going to have to decide to either have a great hospital and dissolve the Hospital Authority. Or Have the Hospital Authority and have a mediocre hospital. Granted it will be ran better than HMA ran it but, not much. It will be ran just like Deaconess is ran. For profit hospitals are just not ran very well in this country.A healthcare facility should never be a for profit enterprise. It should be non profit, all money earned should go back into the facility for upgrades, employee pay and patient care. Profit to stock holders should never come before patient care. When profit is your focus you don't care about your employees, you don't care about the quality of your operation all that matters is that the facility makes money. At the end of the day if the hospital does not make money, the doors close and the people in the area stuck with having to find healthcare elsewhere and sometimes that's miles away in another city.

The only logical conclusion I can come to is that Community Health Systems promised the city they would dump money into the hospital and recruit better talent to the hospital. When Mercy, INTEGRIS, Saints and OU provide the best pay and benefits you are not going to hang on to the best people for very long. You are only going to get the lackluster employees from the competition and the new grads who are desperate to land work.

I wholeheartedly agree with you on the bolded part! It's frustrating as hell sometimes to watch the executives of HCA and OU Medical Center take home bonuses that are 5-6x some peoples' salaries, while many of the facilities need upgrades and people go without raises.

[bombermwc]

So did I miss something? Did the authority decide to let CHS have it? What a total screw up if that's the case. Big fat fail. Perhaps it's letter writing time everyone. Anyone know how to contact the authority to voice our disgust with this?

[mmonroe]

March 5 at 4:47pm

Midwest City - Office of the City Manager (Facebook Page)
The Memorial Hospital Authority (MHA) has rescinded its Right of First Refusal decision that it made last week. Under the Right of First Refusal, the HMA had offered Mercy Hospital the opportunity to manage Midwest Regional Medical Center, but, was unable to agree upon essential financial terms of a lease as they related to exercising the Right of First Refusal. Therefore, the hospital will be managed by Community Health Services, the largest private hospital group in the US. For the complete story, go to Home home page.

Posted on Wednesday, March 5, 2014 by Kay Hunt midwestcityok.org

Memorial Hospital Authority rescinds Right of First Refusal

The Midwest City Memorial Hospital Authority (MHA) met in a special meeting, which was recessed Monday night and ultimately concluded on Tuesday night, to consider rescinding the Right of First Refusal they exercised early last week with the current lessee of its hospital, Midwest Regional Medical Center.

Due to the Hospital Authority's inability to consummate an agreement with a successor lessee to take over operation of its hospital, they determined it wasn't prudent for them to pursue the Right of First Refusal under the 1996 lease.

The MHA Trustees had selected Mercy as the preferred candidate to lease the hospital but negotiations recently reached an impasse between the MHA and Mercy.

“Despite our best efforts, the Hospital Authority was unable to reach an agreement for Mercy to take over management of our hospital,” J. Guy Henson, City Manager, said. Henson stated that the Authority and Mercy were unable to agree upon essential financial terms of a lease as they related to exercising the Right of First Refusal.

“Our goal has always been to seek the best hospital care possible and reach an agreement with a lessee that would be in the best interest of our community and the Authority. Therefore, the Authority has agreed that HMA/CHS will continue to serve the community as the lessee and management company of our hospital under the existing lease agreement,” Henson said.

Henson further stated that the Authority initiated this process to ensure that Midwest City residents and all of the other patients of Midwest Regional Medical Center were provided with a high level of medical care. “As a result of these actions the hospital is now part of the largest private hospital system in the United States which means that this community can look forward to it investing its resources here,” Henson said.

March 7, 2014

Midwest City - Office of the City Manager (Reply to Previous Facebook Page post)
The city of Midwest City would like to thank all of you that have voiced interest and support of this very important issue that has faced our community for several months. As we stated in our recent press release, the Authority and Mercy were unable to agree upon essential financial terms of a lease as they related to exercising the Right of First Refusal. Therefore, a lease agreement with Mercy was impossible. Again, thank you for your interest!

[94GTStang]

So did I miss something? Did the authority decide to let CHS have it? What a total screw up if that's the case. Big fat fail. Perhaps it's letter writing time everyone. Anyone know how to contact the authority to voice our disgust with this?

Well Mercy agreed to a bloated building appraisal that included the money it would take to renovate the floors. Last week they were told they would need to pay the $27 million dollar loan that was outstanding for when the two upper floors were added to the tower. It's no surprise Mercy walked away.

It's a shame that we might go the way of Deaconess.

[bombermwc]

Bunch of bull****. It will go EXACTLLY the way Deaconess went. And we're left screwed over as pawns in this whole mess. The authority has failed its residents in every way possible. I'm severely disappointed in their inability to get this one done. They're trying to spin it as a good thing, but the staff from MRMC that went to Deaconess can tell you, it's not going to be any better.

And they can also be blamed for not allowing a second option with another vendor. All the eggs in one basket, and the basket broke. Not to mention that the entire finances should have been made clear from the beginning.

HMA built on to the facility, not because it needed it. But because it was a way to increase capital costs to fluff up the purchase price, and we got screwed over because of it....again.

So like we were at every step in the process after the hospital was sold, the community loses out. And the horror stories continue to flow (even this week) of people that are there with staff that doesn't listen and continue to make resident-level mistakes.

Pathetic

[mmonroe]

27MM?! No wonder the City Manager's Office wouldn't make any more of a statement other than saying Mercy backed out, it's because the city ****** this one up.

Let's see if Eastword prints the real story on this one, gets covered up or not mentioned at all.

[Drake]

27MM?! No wonder the City Manager's Office wouldn't make any more of a statement other than saying Mercy backed out, it's because the city ****** this one up.

Let's see if Eastword prints the real story on this one, gets covered up or not mentioned at all.

I got an email from Eastword the day Mercy walked out and short statement echo the thoughts of you guys.

You should the new Eastword direction. They are getting much more into multimedia and also have delivered subscription based paper that has more content than free one. They are going to start putting legal notices and such in the subscription based paper. It's like $25 a year but I think you can get for $10 right now

[mmonroe]

I'm well aware of the changes at Eastword and the legal notices are two years out.

My aim isn't at Eastword, it's towards the CMO, given the intel.

[Drake]

I'm well aware of the changes at Eastword and the legal notices are two years out.

My aim isn't at Eastword, it's towards the CMO, given the intel.

Sorry. Didn't mean to direct that you or change the subject

[bombermwc]

Well one point that shows how things have already gone downhill even more....

I spoke to a staff member yesterday and the employee benefits already decreased from what HMA offered, which was pretty sad. So how do we expect to be able to retain a quality staff if they aren't compensated properly? It's just the beginning of the end.

I actually fear for the viability of the place in another 10 years.

[Lauri101]

Damn shame - really had hopes up with Mercy.
After the nightmare I've gone through in past year thanks to MRMC, have no confidence in this hospital and have told my local doctors they better get privileges elsewhere if they want me as a patient.

[MWCGuy]

The city really screwed this one up. The asking price was way too high. Mercy probably looked at the asking price and decided it would be more cost friendly to build a hospital from the ground up instead of leasing MRMC. I am sorry to say this but, MRMC will probably end up closing or being repurposed as something else.

Eastern Oklahoma County is growing and I willing to bet in 5-10 years there will be another hospital built in Midwest City or just due east of Midwest City. Saints will add a hospital tower or INTEGRIS or Mercy will build one. When it happens, MRMC will be history.

[bombermwc]

Well the Saints site was designed to be able to add a second tower similar to what's already there, should they choose to. It's location allows it to grow pretty easily as well. I guarantee that trailer park next door isn't going to fight being bought out if Saints ever wants to. There's a 14 acre parcel next door that is owned by an oil and gas co. in Tulsa. The next 4 acre plot over is zoned residential, but could easily be changed. Especially since there isn't anything on it.

The neighborhood immediately south of there is pretty quiet. I'm sure those residents wouldn't be too excited to have a full hospital on the other side of their fence, but to be honest, if Saints wanted to throw their finances around, they could probably buy out everything north of 36th, to I-40 and build a facility the size of MRMC if they wanted to. If they chose to do that, they could also probably afford to doze the existing structure since it's so simple. It's not exactly a fortress of a building. it's more of a physician building than anything. Access to I-40 is obviously so close, it's an ideal location....much better positioned to serve the community than MRMC is being at Reno/Midwest, which is NOT near an interstate and NOT central to it's service area...rather only to MWC. I'm not faulting them for it, it was built by the city 70 years ago exactly where it should have been for the times. Things have just changed over the years to be EOC rather than just MWC.

And being EOC, I could very easily see a swath of land further east being a prime location. Mercy's Heart Hospital also has room to expand....quite significantly should they choose to.

[mmonroe]

If MRMC were to shut down... the quality of life in Midwest City would surely tumble as emergency response for an already aging population in the city would become almost too much to handle and the city's reputation would also falter. Our only hope is that a second hospital would come in and replace MRMC to curb that. I don't believe it's no longer an "if" as it is now a "when" for the end of MRMC. Along with that also ends a lot of grants the city gives out as the interest on the trust for the hospital funds pay for most if not all of them.