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FMH cuts ties with Palmetto Health
by Bobb Hane
4 years ago | 424 views | 0 0 comments | 4 4 recommendations | email to a friend | print
Fairfield Memorial Hospital will lose eight benefits, when its contract with Palmetto Health expires in December 2007, according to a letter from FMH Board Chairman Jim Futrell to Charles D. Beaman, Jr. chief executive officer of Palmetto Health.

Futrell cites the following in his letter:

  • discounts achieved through the Premier group purchasing arrangement;

  • possible loss of clinical pathology services rendered through Palmetto Health facilities;

  • elimination of recently negotiated arrangements for expedited emergency medical transfers from FMH to Palmetto Richland;

  • access to Palmetto Health administrative specialists at no, or greatly reduced, charge;

  • loss of 40 discount at Palmetto Health facilities for FMH inpatients needing special studies that are not available in the County;

  • free access to all Palmetto Health policies and procedures, including corporate compliance, human relations, etc.;

  • physician recruitment assistance at no charge;

  • and designation of Fairfield Memorial as an “in - network facility for Palmetto Health employees - meaning that all Palmetto Health employees, residing in Fairfield County can receive their health services at FMH without penalty.

    Palmetto Health also pays for the salary and fringe benefits for FMH CEO Larry Dozier. As a result of the contract decision, Dozier will not be associated with Fairfield Memorial after December 31, 2007.

    Futrell has invited Beaman to address a meeting of the Board’s Executive Committee to be held tonight at the Hospital. He is expected to speak on the benefits that the hospital will lose by discontinuing the relationship. The purpose of the meeting, according to information obtained from FMH, is to discuss various management options for the hospital.

    Cost of the Contract

    Fairfield Memorial has had a similar relationship with Palmetto Health for 20 years. Fees have risen slightly over the life of the latest contract. In 2005, FMH was expected to pay Palmetto Health $160,000. That figure rose to $168,000 in 2006 and to $176,000 in 2007.

    As of Oct. 1, Fairfield Memorial had not paid Palmetto Health in more than a year and owed the group $197,000. By the end of this calendar year, the Hospital will owe an additional $44,000.

    “In addition to the above, I am also concerned about the loss of Larry Dozier and his 36 years of hospital administration experience in South Carolina which have benefitted us greatly in terms of Duke Endowment grants, federal and state grants, experience in dealing with the General Assembly on legislative initiatives - not to mention his rich history as a leader in the SC Hospital Association and the Palmetto Hospital Trust and the knowledge he possesses,” Futrell wrote to Beaman.

    Board Members Comment

    Futrell favored approving a new contract with Palmetto Health and cited Dozier’s leadership as a crucial factor in his decision. He did not; however, favor the use of paper ballots to vote on the contract.

    “I?am sure that the Board was looking at the cost of the Palmetto Health contract,” Board member John Peoples, who supported the contract, said.

    Nevertheless, he believes that it was not a good time for the hospital to be changing its top leadership (Dozier).

    Peoples said it made no difference to him, whether the vote on the contract was taken on paper ballots or by a show of hands.

    Board member Robert W. Davis said that he thinks the hospital can obtain its own administrator and do it for less money than what is being spent.

    “I did what I believed was in the best interest of Fairfield County,” he said.

    Davis believes he voted in favor of the use of paper ballots for the vote on the contract.

    “It appeared that’s what they (the Board) wanted,” Davis said. “I?had no problem one way or the other.”

    Board member Nelson Lacy said, “I think the contract was in executive session and I?can’t talk about the contract.”

    The Board discussed the contract in a non - public session; the vote, however, was conducted in public session. Four Board members voted to not approve a new contract with Palmetto Health, while three voted to approve such a contract.
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