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More hospital worries

Mar 27, 2008

An old rumor has been passing around Terrell – the hospital is closing.

Hospital officials said they have no plans to shut down Renaissance Hospital of Terrell, but admit that like, other health care providers, they are struggling.

“There is no bankruptcy. There’s no plan to close the Terrell hospital,” said Michael Smesny, Renaissance’s chief financial officer. “It’s an open facility. It’s viable.”

He wouldn’t discuss the finances of the Terrell hospital or the parent company, Renaissance Healthcare. But added, “We go in and out of having a financial situation.”

The hospital apparently was behind in paying something as basic as its garbage fees, but has caught up. Several city officials said they had been hearing from businesses who are owed money.

“I think we are real concerned,” Mayor Hal Richards said.

City Manager Torry Edwards said he has discussed the problems with the hospital’s administrator, Sean Astolfo. He said the administrator told him that the Terrell hospital is profitable, but that the parent company has had financial difficulties because of delays in opening a planned hospital in Grand Prairie.

Specific financial information was not provided, Mr. Edwards said, but Mr. Astolfo said that there is a heavy load of emergency room patients. Most of the hospital’s money comes from the ER.

Mr. Edwards and Mr. Richards said the city has little recourse. Renaissance is not required to provide any financial information.

“Really the only roll that the city pays is that we own the building. We don’t have any say or influence over the operations,” Mr. Richards said.

The hospital has been a sore spot for more than a year. The previous operator, Resurgence Health Group, announced in January 2007 that it intended to close the hospital by March 9. The city scrambled to find a new operator and closed the deal with Renaissance in February.

Renaissance began immediate renovations. City records show the company spent more than a million dollars, but the company had announced plans to spend $3 million or more.

City officials were alarmed again in January when word got out that the hospital had been sold. But that proved to be false. Another health care company invested in Renaissance and replaced the chief executive officer.

The hospital did close it’s clinic in Wills Point, leaving without paying the rent, the landlord said.

Still, the Terrell hospital seems busy, Mr. Richards said and, in general, people who have talked to him about the hospital have been pleased.

However, the city remains concerned about the hospital’s long-term prospects.

“At some point the Renaissance responsibility is to make that a viable hospital,” Mr. Edwards said. “We’re just the landlord.”

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