Robert Bauer, Jr., chairman and CEO of Nashville-based Ameris Acquisitions, LLC, says plans are proceeding to reopen Crittenden Regional Hospital in West Memphis, but he could not yet provide details of when the hospital might reopen, or the services it might provide.

County officials have said it might be smaller than the previous 140 beds.

The hospital had about 500 employees when it closed in September 2014, citing challenges with a struggling economy, declines in patient volume and reimbursement, physician departures and two fires, including one that closed the facility for six weeks.

“We are working with the county to figure the exact structure of how this is done, whether it is non-profit or for-profit, and how the facility can be re-established as a legal entity,” Bauer said. “Then we have funding issues, which include raising the working capital to re-open the facilities.

“There are going to be a lot of expenses to get everyone recruited and trained. After you open, you don’t start collecting the money that day. You have to collect enough money to support yourselves during the startup issue.”

The old hospital is in bankruptcy, which means whatever is done with the facility has to be approved by a bankruptcy judge. The reopening cannot proceed until the country can provide a clean lease for the building.

“The bankruptcy can be dealt with,” Bauer said. “We have some ideas in mind we think will work.”

In July voters approved a one percent sales tax to fund reopening of the hospital by a margin of nearly seven to one, with 2,846 in favor and 439 opposed. The tax set to go into effect in November for five years is expected to raise about $30 million.

“The longer the hospital was closed, the more it was missed,” said Bauer. “I wasn’t surprised, but I was impressed at the high percentage of residents who voted to approve a one percent sales tax to fund the hospital. There is no doubt that a population of that size – there are 50,000 people in that county – can support a hospital.

“When we had town hall meetings with people in the community prior to the vote, we heard again and again how much they had missed the hospital.”

Since the hospital closed, not only did the county suffer a great loss of jobs and business activity, but most residents had to travel to Memphis, Jonesboro or Forrest City for medical care.

Bauer said Ameris Health of Nashville is a good fit for taking over management of the Crittenden General Hospital.

“We have a good track record,” he said. “We have been around since 1992. Our principals have been in healthcare their entire careers. Our top three officers have more than 100 years of experience, collectively. And our focus has always been small, community, rural hospitals. We have reopened closed facilities in the past, two of which are still open. You don’t always succeed because of the challenges. But you give it your best shot.”

One thing that is expected to help is the large number of people in Crittenden County who signed up for the private option Medicaid expansion in Arkansas. A major effort was made to get people signed up for health coverage prior to the hospital closing.

Paul Cunningham, senior vice president, Arkansas Hospital Association, said in addition to enhancing the health and well-being of the communities it served, Crittenden Regional Hospital also contributed significantly to the area’s economic health. In 2010, the estimated total annual economic impact was nearly $100 million.

Those figures included nearly $24 million on goods and services and $29 million in salaries.

“Hospital payroll expenditures serve as an important economic stimulus, creating and supporting jobs throughout the local and state economies,” Cunningham said. “Dollars earned by Crittenden Regional Hospital employees and spent on groceries, clothing, mortgage payments, rent, etc., generated approximately $53,343,000 in economic activity and created an additional 350 jobs for the local economy.

In 2010, Crittenden Regional Hospital spent $1,562,000 on buildings and equipment.

Capital spending by Crittenden Regional Hospital generated approximately $2,875,000 for the local economy per year.

Cunningham said the high rate of approval for passage of the tax increase shows that people in the community certainly valued their hospital.

Local tax support for hospitals is common, particularly in rural areas where hospitals are often the biggest employer and largest contributor to the economy.

“Including the new vote, there 22 communities in the state who have voted over the years to provide local tax support for their hospital,” Cunningham said. “There are a couple of exceptions where property taxes are used to subsidize the hospital, but typically they are funded through sales taxes. Most of these hospitals have common characteristics of being small and rural, usually under 100 beds and possibly, in most cases, even under 50 beds.”

Crittenden County voters approved an earlier sales tax increase. Cunningham said if the sale tax increase approved by Crittenden County voters that had kicked in sooner, it might have prevented the hospital from closing down.

RELATED LINKS:

Ameris Health, http://www.amerishealth.com/

Arkansas Hospital Association, http://www.arkhospitals.org/