TRMC/OSUMC saved?

[brunoflipper]

say what you want about them, but ardent may have just done an enormous service to tulsa by making this proposal and forcing the state's hand, giving us a public hospital...

from ardent...
"A Glance at the Agreement

On December 14, 2007, Ardent Health Services, Oklahoma State University College of Osteopathic Medicine (OSU-COM) and the Oklahoma HealthCare Authority (OHCA) entered into non-binding negotiations regarding the disbursement of Indirect Medical Education Funds (IME).

The result of the lengthy negotiations was a signed agreement in which Ardent will donate Oklahoma State University Medical Center, formerly Tulsa Regional Medical Center, and all of its assets to the state of Oklahoma. In return for donation to the state, Ardent will receive a 10 year management agreement and all
IME funds will be restored to the hospital. In return for the IME funds, Ardent has agreed to drop its lawsuit against OHCA. The parties set February 28, 2008 as the completion date for the management agreement.

A Gift for All
Tulsa is considered one of the largest cities in the nation without a publicly funded hospital. Oklahoma City has long benefited from a publicly funded hospital. OSUMC has long been the de facto county hospital without the benefit of public funding.
Transferring the hospital from a private to a public entity will allow the hospital to realize significant financial improvement with the return of IME funds, the reduction of the cost of liability insurance, and the elimination of sales and use, property, and income taxes. With all things remaining the same, preliminary
estimates suggest that the hospital has the potential to experience an annual improvement of $12 million.

In April 2006, Merrill Lynch, on behalf of the Oklahoma Legislature, reported an estimated value of OSUMC of $125-$160 million. This tremendous asset donation to the state will allow the medical residency program to continue to grow to meet the healthcare demands of Oklahomans.

OSUMC is a regional tertiary hospital with nearly 45% of its patients originating from outside the Tulsa area-- last year OSUMC provided unfunded care to residents from 67 of Oklahoma's 77 counties.

Keeping the physician pipeline open is critical for Oklahoma to improve its national health ranking (47th in the nation). The state has the lowest physician-to-population ratio in the nation; and it is estimated that by 2020
there will be a national physician shortage of 1.1 million. OSU physician graduates practice in 70 of Oklahoma's 77 counties.

In 2004 when Ardent Health Services purchased the health system, they made three commitments
to the community: investing a minimum of $100 million within 5 years; maintaining the same levels of charity care; and continued support of graduate medical education. Prior to this donation, Ardent will have already invested $500 million in the state; its hospitals provide even greater levels of charity care; and this donation is a clear indication of the company's commitment to medical education and the health of Oklahoma.

A Glance at OSU Medical Center (OSUMC)

OSUMC is a 363-licensed bed hospital with approximately 1,400 employees and is considered the largest osteopathic teaching hospital in the nation.

OSUMC is the primary teaching hospital for OSU-COM's residency program. Last year Ardent spent $13.5 million dollars in out-of-pocket expenses in support of the residency program. Currently the hospital hosts 132 medical residents and interns in 11 residency programs.
1-in-5 patients are self pay (charity care). As a percentage of net revenue, OSUMC provides the highest percentage of uncompensated care in the state.

In 2006, OSUMC provided $22.5 million in cost of unfunded care to the uninsured and Medicaid
population.

A Glance at the Economics:

Transferring from a private to a public entity will allow the hospital to realize significant financial improvement.

Preliminary estimates indicate that the hospital would move from losing $9.9 million in CY 2008 to positive financial improvement that could be in excess of $12 million. The positive financial impact is realized through the following:

Elimination of taxes (sales & use, property) $2.3 million
Addition of Indirect Medical Education $6.7 million
Reduction of Liability Insurance $3.5 million"
Text

[swake]

It sounds like a big win for the state, for Tulsa and for downtown.

[TUalum0982]

so that is why David Vandewater (Ardent's Pres & CEO) flew into Tulsa as did some of his top execs and manager's on Tuesday!!