Published: Wednesday, September 8th, 2010 @ 1:26 am
By: Brandia Deatherage   ( More Entries )
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    If Beaufort Regional Health Systems is going to merge, it now officially knows its options. According to a news release from the office of BRHS Director of Marketing and Public Relations Pam Shadle, four of the 14 healthcare institutions responded to the beleaguered hospital's Request For Proposal packages by its Sept. 4 deadline.

    Those institutions that submitted proposals were: University Health Systems of Eastern Carolina, out of Greenville, N.C.; Community Health Systems, out of Brentwood, Tenn.; Brim Healthcare, out of Copperhill, Tenn.; and LHP Hospital Group, out of Plano, Texas. As is evident, only one of these health systems is based in North Carolina--University Health System. In point of fact, UHS was the only N.C.-based health system all along. The other 13 suitors are all based in states as far away as Kansas, Texas and Louisiana. Furthermore, UHS has always been the only not-for-profit choice available. The other 13 suitors are for-profit institutions.

    At a public hearing held last week on the subject, UHS seemed to be the crowd favorite. The local, not-for-profit health system is already affiliated with several other North Carolina hospitals: Albemarle Health in Elizabeth City; Bertie Memorial Hospital in Windsor; Chowan Hospital in Edenton; Duplin General Hospital in Kenansville; Heritage Hospital in Tarboro; The Outer Banks Hospital in Nags Head; Pitt County Memorial Hospital in Greenville; and Roanoke-Chowan Hospital in Ahoskie.

    Nevertheless, the out-of-state, for-profit institutions will be given an equal opportunity to make their case for wanting to affiliate with BRHS. BRHS hired Healthcare Appraisers, Inc., of Florida, to provide an unbiased review of all four proposals and report its recommendations back to the hospital board.

"Healthcare Appraisers, Inc. is organizing, processing and performing a thorough review and analysis of the proposals received and will provide a report to BRHS that will include a summary of the proposals and comparative summary of the bids submitted. The report will enable the health system to make an informed decision regarding the selection of the most appropriate prospect. It is expected that this report will be available within the next two weeks," reads a news release from Shadle.

    The three out-of-state organizations may all operate for-profit; but among them, there is a wide selection of relationship possiblities.

    According to its Web site, Community Health Systems currently owns, operates or leases more than 120 hospitals in 29 states. In addition, through a subsidiary, CHS also provides management and consulting services to over 150 hospitals. In 2009, CHS generated $12.1 billion in revenues.

    According to its Web site, Brim Healthcare's specialty is in providing "effective management solutions" for financially troubled community hospitals. They do not purchase or lease hospitals, but, rather, supply them with a temporary Chief Executive Officer. In this case, BRHS could go under contract with Brim Healthcare for three to five years, while retaining control over its assets.

    According to its Web site, LHP Hospital Group is set up to pursue what it calls Joint Ventures with non-profit hospital systems, such as BRHS, whereby the two institutions create a limited liability company, under which the minority partner retains relative control. LHP currently partners with medical centers in Idaho and Texas.

    For the record, a merger is not inevitable; and the Beaufort County Board of Commissioners ultimately has the power to reject any BRHS partnership.