Nine potential operators were identified and contacted to determine the level of interest in operating the local hospital, according to information included in a packet of documents submitted at the behest of state officials during an Aug. 3 conference call.
Among those nine, one expressed interest in operating an emergency room, contingent on an estimated annual $2.2 million subsidy from the county; another wants to help, but is unsure whether that would be in a direct, indirect or advisory capacity; one is interesting in a purchase for a reasonable price; another is interested in a partnership, but noted the price is too high, the document showed. Another hospital system is interested, but the level of interest was not noted.
Others either stated they have no interest, have not returned calls or said the project is outside their coverage area, documents showed.
Lock Boyce, chairman of the Patrick County Board of Supervisors, said the information requested by state officials spanned four areas: potential operators, contacts between the locality and anyone regarding the hospital situation, a fair evaluation of the hospital real estate, a retrospective and a prospective financial statement.
Between September and December, 2017, the county paid $89,063.53 for upkeep of the former hospital, according to documents submitted to state officials. The total included the costs of electric bills, a consultant, maintenance and the salaries of an administrator and maintenance personnel, documents showed.
State Sen. Bill Stanley, R-Moneta, said the locality has stepped up in the effort to reopen the hospital.
He said local residents and officials that included Patrick County Economic Development Authority (EDA) board members and Debbie Foley, economic development director, as well as two supervisors (Crystal Harris, of the Smith River District, and Jane Scales Fulk, of Dan River) and the county administrator traveled to Richmond to make the case to subcommittees considering proposals to extend certain hospital licenses.
“The EDA has worked tirelessly over the past few months to identify a solution to address the health care needs of Patrick County that would not only be mutually beneficial, but would utilize county resources in an equitable and fiscally responsible way,” according to a statement from Foley.
Stanley said other local officials were on hand at the hospital when the bills were signed into law.
Additionally, Foley and EDA board members met on July 9 with state officials that included Stanley and the Deputy Secretary of Health and Human Resources, Marvin Figueroa, to try to lease the hospital or arrange a lease purchase.
“While this meeting was productive, there are still gaps that need to be bridged to ensure the best possible long term outcome for the county,” Foley said.
However, Stanley wrote a blistering letter to the VCC, dated July 25, in which he referenced that meeting.
“I am disappointed to learn that after our meeting on July 9th in reference to the hospital in Patrick County that the discussions for a plan to re-open the hospital are not moving forward to benefit both parties,” Stanley wrote.
“Both parties will need to compromise to make this work for everyone. I feel compelled to remind you all that the citizens of Patrick County pooled together their own earnings in order to build the hospital, and it is for them that you must do all you can to see that their efforts were not in vain,” he wrote.
VCC loaned the former hospital owner $6.79 million for renovations, Stanley wrote. “Clearly those renovations did not come close to the amount loaned,” and in March 2016, Pioneer Health Services filed bankruptcy.
“Over the next 18-months, Pioneer Health Services tried to sell the facility, but due to this loan and other monies owed by the bankruptcy estate, it became difficult if not impossible to find a buyer,” Stanley wrote.
The hospital closure nearly a year ago “has been detrimental to the citizens of Patrick County,” Stanley wrote, adding that when the VCC paid $5.7 million to purchase the hospital out of bankruptcy, “there was some hope” for a partnership between the county and VCC “to either reopen the hospital with a new operator, or create a new facility that provides medical services including an emergency clinic.
After the July 9 meeting, “I was optimistic that this would happen,” Stanley wrote. “After reviewing your recent (counter) offer, I cannot help but believe that you are not serious about putting the Patrick County hospital back into service.”
“If a partnership cannot be reached in a timely manner as discussed at the July 9th meeting, then the only outcome is for Patrick County to look at other options, and you will be stuck with a building not worth anywhere near your $5 million price tag,” he wrote.
The current market value of the facility is estimated at $900,000 to $1.1 million, documents showed. The building is considered a single use facility and sits on a 10.08 acres that would be valuable property if vacant, documents showed.
The cost of demolishing the building and grading the pad for other uses likely is not justifiable, documents showed. There are many issues in the basement, the electrical system is outdated in most of the facility, and there may be mechanical issues with plumbing and heating and air conditioning (HVAC), documents showed.
Boyce said the county may end up building a “separate, free-standing facility. If that happens, I have offered land for that. I expect nothing in return” for the property, he said, adding donating the land would be the prudent thing to do. “I live here too,” Boyce said.