Ailing hospital seeks a partner

• Article
• Comments ()
• Click-2-Listen
• Videos

By

Montgomery General Hospital, after 85 years of independent operation, announced this week it is seeking proposals from other health care providers to set up a partnership.

Despite reports that the hospital is on the verge of a buyout, Peter Monge, the hospital's chief executive officer, is adamant that Montgomery General is not up for sale.

"We are truly looking for a partner," he said. "We are looking for someone who can come in and help us speed up our development programs, and we want to remain a community hospital."

The hospital has not produced big profits over past several years and last year recorded a $1.5 million loss. But after a round of layoffs and renegotiated contracts with supply companies, Montgomery General expects a $2.7 million surplus this year.

Yet the hospital is still coming up short on financing an ambitious $30 million expansion plan for a new emergency room and administration building. The hospital building is more than 40 years old, and its inpatient rooms need to be updated to contemporary standards.

"We just don't have the borrowing capacity to complete the plan," said Lynn Myers, vice president of planning, marketing and business development. "We're struggling to pay for it all."

By partnering with another hospital, Montgomery General would likely get the funding to complete the expansion project and get expertise in areas such as physician recruitment.

At this time, the hospital does not have any doctors on the payroll. Physicians such as radiologists and neurologists work in the hospital under outside contracts.

Mr. Monge said the hospital is seeking to hire about 35 physicians in specialty areas such as obstetrics and family services.

"This hospital does not have enough specialty physicians to serve this growing community," he said.