The Palm Beach Post from West Palm Beach, Florida • Page 263

i 12A THE PALM BEACH POST THURSDAY, NOVEMBER 21, 1996 Bosmer Trunk Show VJltl $500! In cash or Lottery tickets. Call 51 1 and enter code 1015. Each call will cost 50 cents. Or, you may enter the drawing by writing your name, address and phone number on a postcard and mailing it to CALL 511, 2751 South Dixie Highway, West Palm Beach, FL 33405. Entries must be postmarked by the 25th of the month.

Reasons For The Hospital Sale The trend toward managed health care is threatening hospital profits nationwide. So far, Boca Raton Community Hospital has largely not suffered from such pressures because most of its patients are Medicare recipients who are not in managed-care programs. But during the next five years, the portion of Medicare recipients in managed care is expected to grow dramatically. Growing business In the last three years, the hospital has seen unprecedented growth. Paying customers Boca has always had a great economic makeup because most of its patients are elderly and very few are poor.

(thousands) 40 JJk 1997 3iomwt Increased threat Despite a growing profit, the hospital's independent status works against it. The hospital doesn't have the negotiating power a large chain does when it comes to making deals with managed-care companies. F'1 Managed-care patients El Other patients SM CuUning, Cmiedim 30 A- Emergency I 1 Medicare I I Medicaid Other 1994 Join us as Bogner representative Nancy Cronemiller presents the Call 511 and enter line 7300 to get the latest update on 10 different soap operas and play soap opera trivia! Lines updated daily Monday through Saturday after 4 p.m. Just call 3 digits 511. All calls are 50c for up to 5 minutes.

Charges will appear on the phone bill from where the call is placed. Must be 18 years old. For more details see page 2A. Customer Service: 1 -800-349-1 511. A service ot The Palm Beach Post, The Real Yellow Pages and Sun-Sentinel.

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(millions) SKI SPORTS $200 1995 1996 Revenue from patients 19 31.3 150 81 1 100 1996 1996 Profit 24.4 50 34.2 75.6 ttaj 15 flr isf tipper jsb, 1994 1995 1996 SOURCE: Hospital records STEVE MADDENStaff Artist Trustees: Not-for-profit status plus bargaining leverage key History Celebrate With World's Upgrade Option! Open World's exciting Holiday Special today. If rates go up after February 2nd, you can move your money without penalty to a new CD for an even higher yield! 4 Annual Percentage Yield $10,000 Minimum WORLD SAVINGS "ft 3 BANK Member of $35 Billion-Strong Golden West Financial Corporation FDIC APRIL 1962: Poisoning deaths of children Debbie and Randy Drummond inspire the creation of a community hospital in Boca Raton. Friends of the Drummond family form the Debbie-Rand Foundation to build the community hospital. 1964: Frank Dawson is hired as administrator to plan the course of the hospital. JULY 1967: Hospital opens with 104 beds.

1971: Hospital expands to 250 beds. OCTOBER 1982: Hospital opens a new 50-bed wing to combat bed shortage problems. It now has 394 beds. JUNE 1984: The Debbie-Rand Memorial Service League, originally formed to raise money for the building of the hospital, donates a second building to the hospital. MAY 1994: Hospital affiliates itself with the Mayo Clinic Jacksonville.

The two form an affiliation to boost patient referrals and provide education for Boca Raton Community Hospital doctors. FEBRUARY 1995: Hospital President Nat West resigns after serving since 1986 and seeing the hospital complete a $15 million project and expand outpatient services. JUNE 1996: Hospital delays seeking approval for a $36 million, 15-year expansion project after neighborhood opposition. NOV. 20: Hospital trustees announce sale to a not-for-profit consortium of Allegany Health System of Tampa; Eastern Mercy Health System of Radnor, and Intracoastal Health Systems of West Palm Beach.

Compiled by staff researcher Amy Muscoplat Boca Raton BoyntonBch. (407)736-3011 West Palm Bch. (407) 683-0400 Glades (407)482-6290 Deerfield Bch. (954)421-0123 Hours-Mnn-Thnrq q-4- W. Palmetto (407)338-7800 Lake Worth (407)969-0500 Fri 9 6 Sat 9 1 Yamato (407)241-8066 Wellington (407)795-0150 INSURED TO $100,000 For World Savings Bank rates call 1-800-HOT-RATE (1-800-468-7283) APY is effective as of date of publication; subject to change.

$90,000 maximum. Personal funds only. Penalty for early withdrawal. Transfers must be made into a non-liquid World CD with a term of three months or longer, and must be completed by March 1, 1997. Weir said the sale would mean the loss of local control.

He has instructed the group's attorney, Gerald Richman, to proceed with legal action against the hospital's board. Weir said the action would seek to enforce the board's legal responsibility to follow the community's wishes. Gloria Drummond, mother of the two children whose deaths in 1962 helped spawn the hospital, was less critical. "I'm grateful it is not to a for-profit hospital," Drummond said. "But I would like to learn more." Drummond said she had opposed the hospital's sale to a for-profit entity because she feared the quality of care would decline.

She worries about who would lead the hospital and whether donations raised for it would be shifted to other not-for-profits owned by Allegany. Allegany Chief Executive Officer Howard Watts said about 90 to 95 percent of profits stay with the local hospital, and he expected the same with Boca Community. State still wants records Assistant Attorney General Cece Dykas said the board's announcement should clear the way for the hospital to give the agency all the documents it seeks related to the sale. Board Chairman Ray Osborne said the board would provide whatever documents it could without breaking laws or jeopardizing its bargaining position. Dykas said her office wants to make sure the sale price is fair, and money donors gave to the hospital is used appropriately.

In some respects, the community's opposition to a sale is a product of the hospital's own success. The hospital nets millions in donations every year, and last year the hospital made a $23 million profit, its best year ever. Hospital trustees said they are selling now because the changing health care industry is already weakening their position in the market. Bigger hospital companies can usually offer lower health costs and greater geographic coverage to attract business from HMOs. Michael French, president of Intracoastal, said Boca Community's decision is a boost for his two West Palm Beach hospitals.

"To have competed against Tenet and Columbia and won indicates the strength of not-for-profits to compete with the for-profits." ColumbiaHCA officials acknowledged losing Boca would alter their plans to expand in the county. But they said they would build outpatient facilities to improve their presence in the Boca Raton area. Board members said the community's fears about Columbia and other investor-owned hospital companies influenced their vote Monday night. With many details still to be worked out, Pierce said the newly formed hospital system presented the best way for Boca Community to retain its original mission of serving the community, not stockholders. "Will it be strong enough?" Pierce said.

"Only time will tell." Staff writer Alexandra dough contributed to this story. HOSPITAL Prom 1A profit hospitals to survive in an environment dominated by stingy managed-care companies and aggressive billion-dollar, for-profit health care chains. Boca Community's trustees, vho make up the board of directors, had stressed they preferred an arrangement to keep the hospital out of the hands of investor-owned companies. Yet, they also sought to join a partner big enough (o provide leverage in negotiating fees with health maintenance organizations. At a news conference Wednesday at the hospital, trustees said tfleir choice, although non-bind-iflg, will give them both benefits.

Boca Community will retain its rjjpt-for-profit status with the decision to sell to a group of three hospital companies: Tampa-based Allegany Health System; Radnor, Eastern Mercy Health System; West Palm Beach-hjsed Intracoastal Health Systems. Allegany and Eastern Mercy are billion-dollar Catholic hospital companies. Intracoastal is the parent of Good Samaritan and St. Mary's medical centers in West galm Beach. Allegany owns four hospitals, including two in St.

Petersburg and Tampa. It also owns half of Intracoastal, which was formed in 94. Eastern Mercy owns 22 hospitals largely on the East Coast, including Holy Spirit Hospital in ort Lauderdale. I. The four groups Boca Community, Allegany, Eastern Mercy Intracoastal will form a separate company to own and run foca Community Hospital.

The hospitals are still working out the management structure of the new company, but Boca Community's aame will endure. Under the letter of intent that expected to be signed as early as today, Boca Community would not fiecome a Catholic institution after 2ie sale, and all present health Services, including tubal ligations $id fertility treatments, would Continue, said Pierce, the hospital's president. The $190 million sale proceeds would be added to the hospital's existing $1 10 endowment. The ffioney will be used to support jfioca Community and pay for other (jealth services in the area, officials said. The sale price was well below flie $350 million to $400 million estimated earlier this month by Boca Community consultant Josh-Qa Nemzoff.

ColumbiaHCA flealthcare Corp. and Tenet Healthcare Corp, the nation's two largest hospital chains, reportedly Sid in that range, a source said. 3 "Money was not the driving factor," Pierce said. He noted that a for-profit company bought goca Community, the proceeds not have been used to support the hospital. Boca Community and officials from the other three hospital companies hope to complete negotia-ions in the next month, and sign a permanent deal in January.

Explain deal to community Boca Community officials plan ib meet today with various community leaders to explain their decision, and possibly sign the letter of intent. A special meeting VERTICALS and DRAPERIES 3 W2 Over 1 Million Yards Of Fabric In Stock MQJS1T GO! I I "TlfP" i fe, 1 Miff Re-'228 Wierb8r $3599 36x60 Reg. $89 1 Euro Style 1 Verticals $10" IW 'm Stock Stunning Plush 'ft! 099 Fabric of the city council has been called for Friday to form a community-based commission to work with the hospital's trustees on the sale. The trustees have endorsed such a panel. The hospital has much to overcome to win public support for the sale.

"This is a dark day for Boca Raton," said Mayor Carol Hanson. Weir, a hospital founder, said he planned to go ahead with legal action to block any deal. "I'm entirely opposed to it," said Weir, who heads Save Our Hospital a group formed in response to the hospital's planned sale. Select Group Decorator Fabrics (West Palm Only) Madrid, Valencia, Tunez, Leo Rangoon Installed With Heavy Padding West Palm Beach 842-3710 6598 No. Military Trail Boynton Beach 737-2660 9770 So.

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