Christmas ‘miracle’ on the way?

It’s the season of miracles and it now appears a major one may be on the horizon for the Rockdale area.

Despite the closure of Rockdale’s health facilities—local clinics closed on Monday and Little River Rock-dale Hospital is expected to close by Wednesday—some intense efforts are now focusing on a revival of most local health care facilities in the near future.

“I’m optimistic,” Dr. John M. Weed III told The Reporter Monday. “We are going to have health care in Rockdale. People are going to be able to see a doctor and get their prescriptions refilled.”

CLOSING—Monday afternoon, and that assessment from someone who is an expert in Rockdale’s health care situation if anyone is, seems like a different world from late Friday afternoon.

Little River Healthcare Holdings (LRHC) employees were given a letter saying “due to unforeseen circumstances” the company was considering closing the facilities no later than Friday, Dec. 7.

In addition to Little River Rock-dale Hospital the closings affect the Rockdale Downtown (Main Street) Medical Clinic, Cameron Hospital and Cameron Clinic.

The same day, LRHC filed a motion in Texas Western District Bankruptcy Court to change its bankruptcy status from Chapter 11 (reorganize) to Chapter 7 (liquidate).

“This action is expected to be permanent,” the letter to employees stated.

‘GOOD PEOPLE’—But Dr. Weed—who has been intimately associated with all facets of local health care, and who retired earlier this year after a 44-year career in Rockdale—doesn’t believe it’s the end.

“We have people, good people, who are extremely interested in investing in health care here in Rockdale,” he said. “We’re already getting phone calls about renting the downtown clinic.”

For an extended period of time the Rockdale Hospital District board has been searching for a partner to step in and head off the potential closing of facilities.

Now that search will be to find a partner to reopen those facilities.

“This (situation) is not a Rockdale problem,” Dr. Weed said. “Little River led to this. This facility (Rockdale’s hospital) has been stable for 10 years.”

“We are going to have health care in Rockdale. People will be able to see a doctor and get their prescriptions filled.”
—Dr. John M. Weed III

He said the volume of usage of local health care facilities can support a re-opening. “We are seeing 2,500 people a month,” Dr. Weed said. “There’s not a lot of health care capacity within 50 miles of here.”

LABS—How did the hospital, which had survived four previous financial crises in past years—end up closing this time?

A study by Modern Healthcare—which has allowed permission for The Reporter to use its report—noted that in 2016, Little River’s “Rock-dale campus” reported outpatient lab charges were 86 percent of its total charges and that the figure was 62 percent in 2015.

Modern Healthcare is a business publication targeting executives in the healthcare industry.

The study also said, according to court documents, Little River and its affiliates owe more than $1-million in unpaid wages and hundreds of thousands more for employee expenses, benefit plans, worker’s compensation and other items.

It also noted a lab test company, True Health, was LRHC’s second largest creditor and is owed $3.4 million.

The largest creditor is America Express at $3.5 million, according to Modern Healthcare.

Little River entered into an operating agreement with Healthcare Management Partners on June 25, under which HMP provided business and advisory services.

HMP is a joint venture with Modern Healthcare. Ronald Winters, a managing director with HMP, is serving as LRHC’s chief restructuring offi cer.

It was Winters who signed the Friday letter advising employees of the situation.

In July, LRHC was reported to have about 600 employees system-wide. At the time of closing it’s believed about 300 are being let go, about 100 of those in Rockdale.

The Modern Healthcare story is available at

https://www.modernhealthcare.com/article/20180623/NEWS/180629971.

EMPLOYEES—Dr. Weed said he believes Rock-dale area residents will also be able to see specialists, as well as receive primary care when the facilities reopen.

“The specialists want to come back,” he said. “And our employees have been tremendous through all this. To a person, they want to stay here and do what they’ve been doing.”

Dr. Weed said he looks for action toward reopening facilities in 30 to 90 days, roughly from Christmas-time to early spring.

One facet of Rockdale health care probably won’t reopen, he said. While the hospital could continue to offer out-patient services, the in-patient part has probably ceased with this week’s closings.

“The in-patient part is just getting harder to do,” he said.

Isn’t there a fear the hospital, which was constructed in 1973-74, will lose its “grandfathered” building code status and be faced with prohibited expenses if it reopens?

“I don’t think that’s going to be a factor,” he said. “It’s mandatory to have inspections and we have kept up with those requirements over the years.”

What’s the bottom line?

“I believe this is going to happen,” Dr. Weed said. “We are going to re-gain our health care in Rockdale.”