Sep 30

Written by: Lee Edwards
9/30/2009 12:22 PM 

WHAT IS BEING ANNOUNCED TODAY? The Brown County Regional HealthCARE Board of Trustees has selected Essent Healthcare, Inc. as the best strategic partner to acquire Brown County General Hospital and its related operations. Following a thorough and deliberate evaluation process to find the right partner, the Board passed a motion to recommend that the Brown County Commissioners choose Essent from among a group of bidders to purchase Brown County Regional HealthCARE. The Commissioners accepted that recommendation and made a motion to enter into an agreement with Essent Healthcare for the acquisition of the hospital from the County. The acceptance of Essent’s proposal to purchase Brown County Regional HealthCARE initiates negotiations with Essent Healthcare for the purchase of the hospital. The transaction is expected to take at least 60 days to complete, pending due diligence and customary regulatory approvals. ARE THERE ANY CHANGES TAKING PLACE AT THE HOSPITAL TODAY? No. It’s business as usual. Brown County General Hospital will continue delivering high quality healthcare to its patients. Wednesday night’s decision begins a due diligence process during which both parties will work together on various aspects of the transaction and develop a definitive agreement. This process is expected to take at least 60 days. The formal transition of ownership will follow all of this work, as well as the review of appropriate regulatory agencies. The Brown County HealthCARE Board of Trustees and Essent Healthcare will communicate with you throughout this process. WHY WAS ESSENT HEALTHCARE SELECTED? The hospital must be aligned with a clinically sound and financially strong healthcare system to ensure its long-term vitality in an increasingly complex healthcare environment. Essent Healthcare was founded in 1999 with the mission to own and operate small to mid-sized community hospitals essential to their communities and to provide them with the financial resources and the expertise they need to grow – and they have a proven track record for doing just that. In joining Essent Healthcare, Brown County General will have a powerful partner with a proven track record of stabilizing—and growing—community hospitals that have faced challenges similar to those of Brown County General. WHAT ARE KEY POINTS OF THE SALE? As part of the proposed agreement approved yesterday, Essent Healthcare plans to: Assume all of the hospital’s debt, contract obligations and capital leases, pending completion of the due diligence process Make capital investments of at least $13 million over the next three years to include the construction of two new floors with approximately 50 private inpatient rooms and improvements in technology and equipment Offer employment to all employees at the time of closing, with full credit for years of service and rates of pay, and with a competitive benefits package Establish a hospital Board of Trustees with local representation Maintain the hospital’s core general acute care services and to expand the services at Brown County to include cardiology, orthopedics, and behavioral as well as other services most needed in the community Recruit additional physicians to the area Preserve the hospital’s mission of providing affordable healthcare to the citizens of Brown County WHAT PLANS DOES ESSENT HAVE FOR THE HOSPITAL? Essent Healthcare plans to maintain the hospital’s core general acute care services. Essent’s strategy will be to improve, strengthen and expand Brown County’s medical services so that it can continue to improve its current delivery of hospital care. Specifically, Essent plans to expand services with a special emphasis on behavioral health, cardiology and orthopedics. Other plans will follow the due diligence process and in-depth conversations with physicians and staff as to the services most needed in the community. WILL EMPLOYEES KEEP THE SAME BENEFITS? Essent Healthcare is now working to provide detailed answers to questions about seniority and current benefits, but it would be premature to do so today. However, Essent Healthcare is committed to honoring benefits accrued and earned by Brown County General employees and will ensure that their status is comparable when they enter the Essent family. WHY DOES ESSENT WANT TO ACQUIRE BROWN COUNTY GENERAL HOSPITAL? Essent Healthcare recognizes the strength of Brown County General Hospital, the extraordinary quality of clinical care delivered by its staff and physicians, and its potential to serve a growing region. Essent believes Brown County General Hospital fits its model of owning and operating community hospitals essential to their communities and providing them with the financial resources and the expertise they need to grow. WHY IS THE HOSPITAL BEING SOLD? This agreement follows a thorough and deliberate seven-month-long search by the Board of Trustees for a partner who will secure the long-term vitality of Brown County General and further strengthen its quality of care. Like many stand-alone community hospitals in Ohio and across the country, Brown County General Hospital has been facing a cash shortage and lost $2.5 million on operations in 2008. In considering their decision, the Board recognized that Brown County General Hospital must be aligned with a clinically sound and financially strong healthcare system to ensure its long-term vitality in an increasingly complex healthcare environment. In joining Essent Healthcare, Brown County General will have strong partner with a track-record of success in operating community hospitals. WHAT IS THE PROPOSED PURCHASE AMOUNT? In the approved agreement, Essent will assume the hospital’s debt, contract obligations and capital leases. The final purchase price will be determined after on-going due diligence and other negotiations are completed. HOW LONG WILL THIS PROCESS TAKE? This process is expected to take as least 60 days and requires the review of various regulatory agencies. HOW WILL I LEARN MORE? Essent Healthcare and Brown County General Hospital will work to keep you informed about the latest developments as we move forward. In addition, if you have questions or thoughts, please send an email to the executive mailbox at m_patterson@bcrhc.org. While we may not be able to answer each email personally, we will work to answer common questions through emails, meetings and through other venues.

 

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