More on Community Hospital Corporation that Somervell County Hospital Authority Board Went With (March 2010)Somervell County Salon-Glen Rose, Rainbow, Nemo, Glass....Texas


More on Community Hospital Corporation that Somervell County Hospital Authority Board Went With (March 2010)

2 March 2010 at 9:55:37 AM

We attended the board meeting held at Glen Rose Medical Center on Feb 25, 2010. At that meeting, the board decided to contract out with CH Consulting, which is the consulting subdivision of Community Hospital  Corporation (CHC), which is also a division of Community Health Corporation,  to do an operational audit. Also at that meeting, David Orcutt of Lake Granbury made a public comment about his entitie's services. On that post, one of our regular commenters wondered who CHC was and whether they had anything to do with Community Health Systems. (Is that the entity that was involved with Ross Perot? It appears to me that they are 2 separate corporations.) So thought I'd look a little into CHC.

First, from their board of directors webpage.

Michael D. Williams, FACHE
President & CEO
Community Hospital Corporation


Williams was lured back to Texas in 1997 when he became president/CEO of Community Hospital Corporation. The nonprofit support organization was created to advocate for hospitals and their success. Dan Wilford, former CEO of the Memorial Hermann Healthcare System in Houston, helped develop the concept of CHC and served as its first board chairman. The 12 hospital CEOs on the CHC board include several of Williams’ mentors, including past THA Chairmen Ben McKibbens and Tucker Bonner, plus Earl M. Collier Award for Excellence in Healthcare Administration winners J. Lindsey Bradley and Boone Powell Jr.

From Hoover

Community Health Corporation is a not-for-profit hospital management company. The company provides education, consultation, and outsourced management services to community hospitals. Community Health has also leased and acquired several not-for-profit hospitals. Its operating subsidiaries include Community Hospital Corporation (hospital ventures), Community Hospital Consulting (management and advisory services), and CHC Community Care (rehabilitation and long-term care facility services). The company was formed in 1996 by a group of not-for-profit and community-owned hospitals.

Here's a filling about CHC Community Care, charitable org

and about political contributions

Mr. Michael D Williams (VHASW Community Health Corporation/), (Zip code: 75024) $1500 to HOSPAC-FEDERAL. THE FEDERAL POLITICAL ACTION COMMITTEE OF THE TEXAS HOSPITAL ASSOCIATION on 05/22/06

Though the elected Hospital District Board contracted the Korbel survey, there is also a corporate board, Val Verde Hospital Corporation, set up by Community Hospital Corporation about eight years ago when that organization won the contract to manage VVRMC. The corporate board has one seat reserved for the chief executive officer of CHC (currently CEO/President Mike Williams) who has veto power over any board decision. None of the corporate board members attended any of the forums or presentations by Korbel, and they voted to refuse the district board’s overture to participate in funding the study to learn what people think about VVRMC.

Many respondents showed frustration that their elected representatives claim to have so little say over how to correct management and patient care issues, despite the fact that the Hospital District Board holds the contract with CHC. “Dissolve the contract with Community Health Care [sic, Community Hospital Corporation],” demanded one respondent. “Fire the company that is running the Hospital and let our local board run it,” said another.

In fact, the hospital board in Val Verde was so upset with CHC that they filed suit.

On Monday, the board voted 6-0, member Rachel Beavan was absent, to file suit in the 83rd Judicial District against CHC, seeking to prohibit the company from using Val Verde Regional Medical Center resources for non-hospital purposes.

A judge issued a temporary restraining order Monday afternoon keeping CHC and the Val Verde Hospital Corporation from transferring funds without the judge's consent, said David Hilgers, an attorney for the district board.

Earlier this year the board announced its intent to put control of the hospital with the elected panel, thus ending its contract with CHC in January 2010.

“Since it was notified its agreement would not be renewed, however, CHC has argued to the district that it intends to seize and maintain nearly $8.5 million of the hospital's assets,” states a press release on the lawsuit presented to the media during Monday's board meeting.

Ew. Ugly

I see from the CHC page that if someone wanted to go bACK to how the Glen Rose Medical Foundation was, but with CHC running it, that could be done. I vote boo on that because I like the transparency of the existing arrangement UNLESS Somervell County wants to get out of the business of owning the premises and sell it to a corporation to run.

There are two primary models for hospital acquisition through Community Hospital Corporation.

 Privatization Model

 For publicly governed hospitals, the CHC team sets up a private 501(c)(3) organization, in which it is the corporate member, that leases the hospital assets from the local authority. The structure created is a not-for-profit organization governed and controlled by a local board. Under this model, both capital and income generated from operations stay in the community. Income streams are reinvested in the facility and the community’s healthcare delivery system.

 Corporate Member Change

 For privately held, not-for-profit hospitals, the CHC team becomes the corporate member of the hospital corporation in order to maximize the benefit that the local hospital can obtain as the result of being a part of the CHC system of hospitals. The hospital continues to be overseen by the local hospital board but with full support of the CHC team. As with the privatization model, both capital and income generated from operations stay in the community.

Again. if our taxes are involved, I think the existing system of a PUBLIC board accountable to the taxpayer is what is warranted. Have to mention here again, however, that AT THIS POINT, Somervell County Hospital Authority Board's contract is with the CONSULTING wing, not the MANAGEMENT wing.

It's interesting to note, however, that in the case of a hospital in Ada, OK, the consulting team made some recommendations and the existing CEO was replaced.

A unanimous vote by the Valley View Regional Board of Directors puts Looper in command. The board made the decision after entering into a consulting agreement with Community Health Corporation, a non-profit hospital management company out of Plano, Texas.

The board fired former president and CEO Ron Webb last week. Webb had been with the hospital for four years.

P.S. It would be worth asking at the Town Hall meeting that the board has planned in a month or so whether there are any plans, in whatever stage, to attempt to bring up a hospital district again.

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1 - humanbeing   2 Mar 2010 @ 10:11:30 AM 

Lake Granbury is currently under the auspices of Community Hospital Systems, as are a number of other community hospitals in Texas and elsewhere. It has its own management branch called Quorum Health Resources. I still don't understand what affiliation Community Hospital Corporation has with CHS and Lake Granbury. Here's the website of CHS:

Also, who owns Lake Granbury Hospital?

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2 - salon   2 Mar 2010 @ 10:17:28 AM 

I can't find a relationship between Community Hospital Corporation and Community Hospital Systems. Looks like they are both entities with their own subsidiaries that provide, for example, consulting services, but are run by different boards. I don't think Community Hospital Corporation has an affiliation with Lake Granbury at all. Hence Mr Orcutt's showing up to make a public comment because he was not strongly considered enough to do a presentaiton for the Somervell County Hospital Authority board meeting, whilc CHC was.

Latest Blog Post by salon -Audio-City of Glen Rose Town Council Meeting Nov 20 2019 - Re: Grievances
3 - humanbeing   2 Mar 2010 @ 11:10:55 AM 

I misunderstood. I thought Mr. Orcutt was with CHC. So he's affiliated with Lake Granbury Hospital?

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4 - salon   2 Mar 2010 @ 11:15:19 AM 

Yes. Apparenlty the board had a few prospects they were going to contact, but had decided, before the last meeting, to go with CHC, because they asked them to do a presentation. (Wasn't, of course, voted on until AFTER the presentation.) Somehow Mr Orcutt heard about this and his entity had not been asked to do a presentation, so he showed up for the public comment to tell the people of Glen Rose about what his entity, through Lake Granbury, had to offer. But, as I said, the board had already decided, on the basis of comfort, to go with CHC, also because they believed that there are no hidden fees but that what they contract for with CHC will be what they pay.

Latest Blog Post by salon -Audio-City of Glen Rose Town Council Meeting Nov 20 2019 - Re: Grievances
5 - Judy Hulsey   2 Mar 2010 @ 5:32:31 PM 

I thought the county was going to run the hospital?? Who is CHC?? And why do we need someone else to run our Hospital.  Don't we have people in place that do that??

When is their next open meeting?

6 - salon   2 Mar 2010 @ 5:56:19 PM 

Let me be clear. The contract that Somervell County Hospital Authority passed with CHC is for an operational audit, not a management contract.  Somervell County appointed, a couple of months ago, a board of directors to run the hospital authority but they are sort of a separate entity  that the county does not directly control.  I kind of doubt that the existing management WANTS to have them come in and shake them from their perch. So, right now the Somervell County Hospital Authority dba Glen Rose Medical Center is who is running the hospital. The operational audit is a good thing because they will be looking at ways that the hospital can be more efficient, etc.

Yes, I think people in the community should attend these board meetings, they are open to the public, although they are not public meetings. Every agenda I've seen so far has a part for public comment. The next one will be about 2 weeks from the last one.

Latest Blog Post by salon -Audio-City of Glen Rose Town Council Meeting Nov 20 2019 - Re: Grievances
7 - salon   2 Mar 2010 @ 6:02:09 PM 

One more quick comment. I record the meetings and posted audio so that you can hear for yourself what went on at the meetings. The presentation and vote by the Somervell County Hospital Authority is at the first part of the audio.

Latest Blog Post by salon -Audio-City of Glen Rose Town Council Meeting Nov 20 2019 - Re: Grievances
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