SAMC Finds Hope in Consulting Agreement

By: Trisha Maldonado
Source: Douglas Dispatch

Southeast Arizona Medical Center may have found a way to keep offering the Douglas and surrounding areas health services.

On October 11 the US Bankruptcy Court approved the consulting agreement between SAMC and People’s Choice Hospital (PCH).

PCH’s goal is to restore struggling hospitals to a position of strength by leveraging financial resources, advanced technology and healthcare business insight.

According to the consulting agreement established on August 21, PCH has the responsibility for overseeing the hospital’s operations on a day to day basis, under the supervision of the SAMC Board of Directors.

PCH will consult the board on operating policies, stand of operation, quality of service, financial procedures and any and all other operational matters of the hospital.

They will also consult the board with respect to the establishment, maintenance, revision and administration of the hospital overall charge structure.

Also outlined in the agreement they will consult SAMC in the hiring, discharge, supervision and management of all employees. SAMC has acknowledged and understands thatPCH may recommend making substantial changes in personnel levels and they agree to cooperate with PCH in this effort.

PCH may consult the board about procedures to credential additional doctors, changes that will improve the number of patients admitted to SAMC. This will also include expanding the number of surgical and incision procedures performed at the hospital, and including increasing out-patient diagnostic tests, elective procedures and elective surgeries.

PCH will also consult on providing tele medicine and access to physician specialist including cardiologists, neurologists, psychologists, surgeons and oncologists.

They will also help the board to establish, maintain and the administration of accounting procedures including assisting with the issuance of bills for services and materials furnished by the hospital and collecting accounts and funds owed to the hospital by implementing controls to track patients from the minute they are admitted to having an invoice ready when they are discharged.

The agreement also states that PCH will oversee the hospitals bank accounts. With the stipulation that no member of PCH shall be a signatory on any of SAMC’s financial accounts.

In exchange for these services, PCH will be entitled to a consulting fee in the amount of 3.5 percent of the hospital’s gross monthly revenues actually received.

At this time PCH is not seeking payment of its fees, due to SAMC’s financial issues.

PCH and SAMC are working together closely to help insure that Douglas remains a viable, operating hospital that can and will provide services in the future will beyond what it can perform today.


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