Clayton’s hospital fights to recover

Clayton County’s hospital is trying to fill 80 vacancies and recruit back physicians —- and patients —- who have taken their business to other area hospitals.

Southern Regional Health System’s interim chief executive won’t talk about the hospital’s finances but said progress has been made since last month, when officials had to beg the county for financial help.

“We’re trying to build services as much as possible,” said Ron Dodson, chairman of the hospital’s board of directors. “A lot of physicians are going to Henry. Some use Piedmont Fayette. We want to see what they can do to make their work at Southern Regional better.”

In January, the Clayton County Commission voted to back a $40 million bond for the Riverdale hospital.

The county’s help prevented the hospital from defaulting on its loan, laying off some of its 1,800 employees and possibly closing.

As part of the agreement with the county, Southern Regional promised to place about $12 million in special reserve accounts to prevent taxpayers from inheriting the hospital’s debt.

As of Friday, the money had not been set aside.

“The escrow accounts have not been finalized but will be in the near future,” said Clint Matthews, the hospital’s interim chief executive. “We’re still working through those issues.”

Clayton County Commission Chairman Eldrin Bell said he is concerned the hospital has had no contact with commissioners.

“I will be asking the board to work with me in authoring a letter to the hospital to get clarity so we can keep the public constantly informed about this major investment in the financial future of the hospital,” Bell said.

The majority of the 80 vacancies are from temporary help that has been trimmed, including nursing and clerical staffing called in to fill shifts.

“There’s been a high use of agency staff and overtime here, which is very costly,” Matthews said.

So far this month, the hospital has saved $300,000 in overtime and temporary staff costs.

Instead, Matthews plans to hire 80 permanent staff, which are needed to provide immediate medical care, he said. They include everything from nurses and occupational therapists to housekeepers and food-service workers.

By treating patients faster, the hospital hopes to decrease the amount of time they stay at the hospital —- which lowers cost, Matthews said.

In October, the hospital hired Matthews’ consulting firm, FTI Healthcare, for $8 million to help restructure the hospital, Bell said. The contract runs until March 2010.

Two months later, Chief Executive Edward Bonn resigned, and Matthews took over.

Four top executives, including the chief operating and finance officers, have also left since Bonn’s resignation. Those slots are being temporarily filled by consultants until a new CEO can be hired.

“We wanted to have our financial situation turned around to a greater point than it is right now so a new CEO will know what he is doing,” Dodson said. “We have to get our feet settled and get in place before we start that search.”

The goal is to attract not only more patients but ones who can pay. Last year, the hospital lost $40 million in indigent care expenses.

The hospital is trying to shift some indigent patients to the Southside Medical Clinic, which opened in December near the hospital.

The clinic, which is owned by Southside Medical Center, provides primary care on a sliding scale based on patients’ income, said Dr. David Williams, the clinic’s chief executive.

This is the second time the hospital has hired FTI to trim fat.

In 2007, the hospital paid the consultants $6 million. Matthews said that contract resulted in a $26 million savings, including cuts of about 90 positions.

Matthews said he can’t promise no additional layoffs at Southern Regional but said employees should be pleased the hospital is hiring.

“At this point, we’re at the appropriate staffing levels,” said Matthews, who has worked in hospitals for more than 30 years. “It’s important employees know we are focused on productivity. That should help give some level of comfort. But sometimes, staffing levels get away from you.”