Hospital’s management company leaving in 90 days
Restoration Healthcare Management is pulling out of Claiborne County Hospital and Nursing Home, a little over a year into their management agreement.
Employees were given the following statement from Steve Clapp, president and one of the owners of Restoration Healthcare:
“Today, November 24, 2010 Restoration Healthcare Management Services provided 90 days notice that it would be terminating the management contract. This decision is made with a lot of thoughtful consideration. We feel that the hospital and Restoration would be better served by seeking another management company.”
The statement continued:
“We will continue to manage the hospital through the end of February. The board will be deciding what steps to pursue over the course of the next few meetings. We will update you as information becomes available.”
Restoration took over management of the local facility on Aug. 1, 2009, and appointed Tim Brown as interim administrator. Brown, who is now with Restoration, served as chief financial officer and later administrator for the facility under Baptist Healthcare System. He is still currently serving as administrator, but will be leaving with Restoration.
Restoration’s proposal for the management contract got the vote of the hospital board of directors over proposals from Covenant Health and Mercy Health Partners, which was the managing organization at that time. The management contract included a fee of $19,583.33 per month to Restoration. They were also to receive a bonus based on final audited figures if there was an improvement from the loss position the first year. The bonus would be based on increases after the first year.
Brown recently went before the Claiborne County Commission to ask for authorization to get a $500,000 loan for the hospital’s operating expenses. The commission approved that authorization, but only one bid was received and it didn’t meet the requirements for a county-owned entity.
There will be a special-called meeting of the hospital’s board of directors on Thursday, Dec. 2, at 6 p.m. in the conference room of the hospital.
