Unicoi County Memorial Hospital Board of Control Chairman Glenn Tilson said Friday the board has a process in place that will determine which possible buyer of the hospital best suits the needs of the county and its residents. He said the process will not involve decisions or votes occurring behind closed doors.
Tilson held a news conference at Erwin Town Hall to outline the process the board will use to choose between proposals submitted Wednesday by both Wellmont Health System and Mountain States Health Alliance.
As originally planned, the board will meet in regular session Monday. However, the board will not meet afterward in a closed strategic planning session to discuss the proposals. Tilson said this is because two of the board’s seven members will not be able to attend.
Instead, Tilson said a strategic planning session will be held later to discuss and review the proposals with no vote being made at that time. After this meeting, both proposals will then be made available for public review for at least seven days. The board will then announce a public meeting at which it will vote to accept one of the proposals.
Tilson said he feels UCMH Board of Control Secretary/Treasurer Russell Brackins may have misinterpreted a state law that allows hospitals subject to open meetings laws to hold closed sessions for the development of marketing strategies and strategic plans. Brackins said Thursday that the board would choose between the better of the two proposals in Monday’s strategic planning session, make that proposal available for public review for at least seven days, and look to formally adopt it at a later public meeting.
Tilson also addressed comments made by Wellmont President/CEO Denny DeNarvaez, who said that while her organization did receive the original one-page request for proposal sent out by the board in late July, she said obtaining information to submit a full proposal was difficult and that the proposal originally submitted by Wellmont reflected the information provided. She has also questioned the process used to arrive at the board’s Oct. 4 consideration of MSHA’s proposal and mentioned a possible conflict of interest with Tilson, who is running to become Erwin’s mayor in November, and the board’s RFP that asked that proposals address the construction of a new facility within the town’s limits.
“The CEO of Wellmont Health System has made statements to the media that she is not happy with the process we’re following,” Tilson said. “She does not think it has been fair to her system. But the first time we heard Wellmont was having any problems with this process was when she spoke up at the meeting on Oct. 4 as we were about to vote on the Mountain States Health Alliance proposal.”
At that meeting, the board voted to delay action on MSHA’s proposal after opening the meeting up for public comment. The board also voted to allow health care entities interested in acquiring UCMH to submit proposals until Oct. 11 and vote to accept the best proposal on Oct. 18, but rescheduling that meeting is slated to be discussed Monday.
Tilson said to be fair, the board opened the process for resubmission of proposals, although the move could have jeopardized MSHA’s proposal and was “changing the rules at the last minute.” He also said if the board had been able to share information of the two original proposals, the public would see a “clear difference” in what MSHA and Wellmont were offering and said the Wellmont proposal failed to meet the board’s requests. Both Wellmont and MSHA have submitted revised proposals.
“What we know was a fair process has become a source of frustration for the members of our board,” Tilson said. “We cannot be pressured by anyone to rush this decision or create an opportunity that does not serve the people of Unicoi County and our hospital. We will now take the time to look at both new proposals and, when ready, release them to the public for their review before we bring the matter to a vote in open session.”
Tilson also said he feels there is no conflict of interest on his service of the UCMH board, a board on which he has represented Erwin for several years.
“I think I do not have a conflict,” he said. “The board is composed of three members that are appointed by the town and three members that are appointed by the county and the chief of staff. It’s been that way for many years.”
In a Friday morning conference call, MSHA President/CEO Dennis Vonderfecht called upon Wellmont officials to “cease and desist” with comments regarding the acquisition process and allow the UCMH Board of Control to select the best possible proposal for Unicoi County.
“We implore upon Wellmont to follow the process, same as Mountain States has followed the process, and not try to bully their way into the relationship with Unicoi County Memorial Hospital,” Vonderfecht said.
He said Wellmont had the same initial opportunity and information as MSHA to submit a solid acquisition proposal to address the July 30 RFP sent by the UCMH board to both organizations. MSHA’s first proposal was made available for public review in late September, and Vonderfecht called upon Wellmont to make its first proposal available to the public.
Like Wellmont, MSHA submitted a second proposal at this week’s deadline, which Vonderfecht said was a necessary move.
“Knowing that Wellmont had weeks of access to our original proposal, we figured that they would attempt to better that proposal in some way or fashion, so we had to obviously submit a second proposal as well,” Vonderfecht said.
DeNarvaez said Friday afternoon that Wellmont officials have no intention of releasing the organization’s first proposal, adding that it included Wellmont taking over the hospital and assisting with its debt but it was not to be a final offer.
“Not because we’re worried about it, but because it’s irrelevant,” DeNarvaez said. “We have now put a proposal together that we recognize is more what the Unicoi County board was looking for, and it is our best and final proposal.”
Wellmont’s revised proposal is available for public viewing on its website.
DeNarvaez also said she is sure Vonderfecht would like for her to back off from making comments during the acquisition process, but she said she doesn’t plan to do so.
“We will not back off as long as I’m getting the number of phone calls I am getting from Unicoi County residents and from the people who are saying ‘please keep fighting,’ because we feel we are fighting for them,” DeNarvaez said.
rrman56 writes:
October 12, 2012
11:48 PM
I favor Wellmont for the sale of UCMH, I believe they will operate for the good of the community and not to the whims of the Chosen Seven.
NO NEW TAXES!
kpierson writes:
October 13, 2012
12:39 AM
As usual Wellmont is trying to halfway do something and come in at the end of a process and manipulate it. While they have a wonderful staff working at their facilities, their management leaves a lot to be desired. The rules never seem to apply to them, and when you attempt to apply them the first words you hear are "We're being oppressed by ".
They've gotten good at stealing community built and owned hospitals and somehow acquiring what never was anyone's to sell in the first place, now they're trying it again.
FYI writes:
October 13, 2012
4:37 AM
Well, I am so glad to hear that things may just be looking up. I am thankful that there were people who were willing to stand up for what is right and what is legal. This sounds like the Board is being held accountable for a change. Sounds to me like they have now been more than informed by the community that we are not happy with them and their backdoor politics!!!! This has never been about who ends up getting the hospital and the certificate of need. However, it has been about things being done in a legal fashion and not behind closed doors.
May the best company win! I think that we may just get a fair process here since their feet are being held to the fire.
Misunderstanding or not, Mr. Brackins, it is still illegal and any transactions of business conducted during those meetings are still null and void.
I would like to see MSHA's new proposal to see what they have added to it. I really like the one that Wellmont has offered to "us" online and the way that they are being so transparent with their business dealings. I hope that we get the same from MSHA.
bridgett writes:
October 13, 2012
5:22 AM
I ust read the WellMont proposal online and agree, I am very satisfied with the open way WellMont has provided their information and included the public presentation of the proposal in the easily accessible manner. I read the initial MSHA proposal, and their letter of intent, and this WellMont proposal is a more complete document that states clearly just exactly what WellMont would bring to the Unicoi/Erwin area. They have addressed keeping acute care beds in both Erwin and Unicoi, and gave a well delineated plan for increased outpatient specialty services and specialist consultants to UCMH, rather than funnel patients to other facilities to get that care. It is overall a much better description of how to put life back into a small medical community to make it better, rather than how to buy a building and suck out the revenue. It addresses clearly how they plan to work with the current employees and physicians already in place, and it has a plan for building a new facility while keeping the old, and keeping some acute care in each area.
I agree, I think MSHA will have to come up with something much more comprehensive and specific than their first proposal if they plan to compete with this. And they need to get it out so the citizens can read it as well.
hadEnuff writes:
October 13, 2012
11:46 AM
When some says Erwin/Unicoi. Is that Unicoi County or the town of Unicoi? Two seperate towns. We need to keep the facility completely in the town of Erwin. Not in the neighboring town.
Imker writes:
October 13, 2012
12:03 PM
You don't need to keep the facility in the town of Erwin. You want to keep the facility in the town of Erwin.
Which reminds me of that ol' joke: The Lone Ranger and Tonto are sleeping one night way out in the mountains, and the Lone Ranger wakes up and spots Indians in the west, and Indians in the East, and Indians in the south, and Indians in the north, and he says to Tonto: "Tonto - wake up! We're surrounded."
And Tonto replies: "What do you mean 'we', Paleface?
murphysmom writes:
October 13, 2012
2:17 PM
I believe the taxpayers of Unicoi and Erwin are speaking up,at last!I read the Wellmont proposal at length,and I am impressed with their commitment to keep quality services here for the people.Assuming the debt,600,000 each,to Erwin and Unicoi.Folks,this is a win,win situation.We desperately need to keep elite medical services here.Like it or not,MSHA has made no secret of its money hungry status for many years now.The human equation needs to be kept in healthcare.Wellmont has always had that high standing for health care,it's not blowing smoke when they submit such a people-oriented proposal.WE NEED WELLMONT HERE! As for Glen Tilson not having a conflict of interest here,that will resolve itself after the November elections!Too late to change your colors,sir.We do not forget those who seemed to forget us!
hadEnuff writes:
October 13, 2012
3:06 PM
OK Imker, need or want , it still means the same from me. Forget Lone Ranger and Tonto..they're dead.
Remove Money from Politics writes:
October 13, 2012
3:33 PM
I believe MSHA would bring better management to the area than Wellmont.
knifehandle67 writes:
October 13, 2012
4:14 PM
Lets see, the MSHA management has managed to aquire $1,311,074,327 in debt as of their 2011 990.
Wellmont has less than half of that amount, seems clear to me who does a better job in ensuring they will be around to care for patients.
Building an empire may be fun, but the debt level MSHA has and the coming Medicare cuts will only hurt the patients. Wellmont is better postioned to provide a superior service to Unicoi County.
love-it writes:
October 13, 2012
4:49 PM
Remove Money from Politics.......Management to the area??? MSHA has managed so well huh!!!!They manage to take from the sick people just to build a empire of debt... If MSHA comes to the area ........you can bet the UCMH will be no more because they will NOT have it open long before it will be CLOSED...........all they want is that certificate of need..........be we dont NEED or WANT MSHA !!!!
Remove Money from Politics writes:
October 13, 2012
6:27 PM
It's funny to see all these names I have never seen commenting here before coming to defend Wellmont. Wonder what's going on there.
knifehandle67 writes:
October 13, 2012
7:30 PM
Some of us don't have time post on every subject, but when a story here concerns the well being of people we know and love we take time to post our thougts and concerns.
This is an issue that will affect a large group for many generations to come, its vital we share our thoughts and bring to light some of the back room deals that surround the hospital Board and MSHA.
There are no Wellmont plants here, just hard working people that care about their community.
volarmy writes:
October 14, 2012
3:18 AM
Why not let the people of Unicoi County vote on the one they want during the presidential election? That way the board members that MSHA are paying off won't matter. I think the people know who and what they need. All the board members care about is how much cash MSHA will give them under the table.
webe4ut writes:
October 14, 2012
7:13 AM
The people of Erwin better hope that whichever entity assumes responsibility of the hospital, they make sure it stays within the town of Erwin. The town of Unicoi is a joke. What do they do for their so called "city"? They spend their money on a few seasonal flags, re-do old cabins, and host ice-cream socials. They vow no city taxes which is great because they offer no services that would justify paying city taxes. The city of Unicoi does not have a police, fire, or city works department. Check out what Unicoi is paying for: a City Recorder, Community Relations Coordinator, Administrative Assistant, and Maintenence and Beautification person! People don't realize that the town of Unicoi is one of reasons Unicoi County had such an increase in property taxes this year. If the taxes Unicoi takes in from their "city" went into the county, there would not have been such a need to increase property taxes.
If the hospital goes out there, it will again take more money from the town of Erwin and will do nothing for the benefit of Unicoi County as a whole. This isn't a you or me situation...this is about us as a coummunity and county as a whole. We should all be concerned as to who gets the hospital and where it goes.
Imker writes:
October 14, 2012
8:32 AM
If the hospital goes out there, at least it will really be a hospital, and not an ER with a helicopter pad like Erwin will get from MSHA. If Erwin would manage their county as well as the town of Unicoi manages itself, we wouldn't have any property taxes either. It's not the Town of Unicoi that' has been buying buildings for 5 times what they are worth, etc., or building schools over sinkholes.
webe4ut writes:
October 14, 2012
1:13 PM
Imker are you serious?? Obviously you are not from Unicoi County and know absolutely nothing about the town of Erwin or the surrounding area. I don't know what buidings you are talking about but as far as the school over sinkholes, first of all that school is not even in the city limits of Erwin. Secondly, if you knew anything about Erwin you would know that school was built over 50 years ago and how would anyone know there were sinkholes there?? Do you think those people in the community behind the school intentionally built their homes over sinkholes as well?? As far as the management of the city of Erwin, of course it would need no taxes if it offered no services. You need to get your facts straight....there is the town of Unicoi, the town of Erwin, and the County of Unicoi. Three different municipalities.
hadEnuff writes:
October 14, 2012
3:35 PM
Way to go webe4ut. Very well said. Some should check how much tax dollars go to the city of Unicoi. Had that money come to the county we would'nt have had such a large property tax put on us.
knifehandle67 writes:
October 14, 2012
6:58 PM
Just so we are clear, neither Erwin or Unicoi are cities. They are both towns. One problem Unicoi County has is the Federal Goverment owns too much land in the county and they just bought more.
The Feds do not pay what the common man pays when in comes to property tax.
webe4ut writes:
October 14, 2012
8:03 PM
That is correct but that does not nullify the fact that the tax that Unicoi takes in takes away from what would go to Unicoi County. If the hospital goes in at Unicoi, the town of Unicoi will benefit which in turns means nothing for Unicoi County. All the citizens of Unicoi will get will be more flags, parties at the Lynch compound, ice-cream socials at the cabin so everybody can dress up in their turn of the century costumes and maybe a parade that will travel the length of a football field through the busy street of Unicoi. I hope and pray that whoever gets the hospital makes it their first priority to keep it in Erwin and get it out of the terrible hole it has been put in. Trust me, you do not want Unicoi to get the hospital. It could potentially be the worst thing to happen to Unicoi County. If Unicoi had been left unincorporated, all the tax money that goes toward the 'town of Unico' would be going directly into the tax base of Unicoi County. Walmart, gas stations, resturants....all of it. There would be no sharing with the town of Unicoi and Unicoi County. All the tax profit would go directly into Unicoi County. That is what I don't understand, why people can't see what a waste "the town" of Unicoi is. It does nothing but hurt Unicoi County. The last thing the people of this county should want is for the hospital to go in Unicoi. That just means even more business goes to the surrounding counties that we can't afford to lose.
justanothernumber writes:
October 15, 2012
5:36 AM
web4ut: Can you tell me where there is an available piece of property suitable to put a sizable hospital on within the City Limits of Erwin? I can only think of one and it is co-owned by one of the sitting Board members at UCMH.
Let me make something clear, I am not a proponent of the Town of Unicoi but they do provide fire and police services to the town.
Why not make an agreement that all entities will share the tax revenues? That would be the simplest thing in the world to do. Seems to me that we are going back to the bottom line once again. It is the Almighty dollar again. No one cares about the optimum care that we could get from one of these systems, it all boils down to where the money is going. How simple minded can you get?
Other than the almighty dollar, what other legitimate reason can you give for keeping the hospital in Erwin?
There is no way that the hospital will be able to recruit specialist and other physicians to come to the area unless it is located in a more suitable location.
I am just thankful that there is now going to be a fair and legal process and we will soon have an answer as to who will provide healthcare to the residents of Unicoi County.
I am simply amazed at exactly how simple minded some of these people are. I care more about the kind of healthcare that I am going to be provided than I do about a location of the hospital. I care more about being able to stay here local in the County if at all possible. I don't want to be funneled to a "Flagship" somewhere unless it is absolutely necessary. If these people would only look at the fact that the more people that are able to stay within the County to receive their healthcare needs, the more tax dollars the County will receive. Which equals more revenue for everyone. The more people that are funneled to these "Flagships" the more tax dollars we are loosing to other county governments.
webe4ut writes:
October 15, 2012
6:36 AM
Are you kidding me?? In what part of Unicoi do you live, because Nowhere in the Unicoi that I live is there police or fire services offered! The only fire department is volunteer and if you do not pay/donate to them they charge you if they have to come out to your house and the "police" service is actually the Unicoi County Sheriff's Department, which would be here regardless. The "town" offers no special services. If you want to talk about the care of the people, what about the people of the south end of the county. What service will they have if the hospital is moved to Unicoi? It will be farther for them to go for medical service. As far as suitable land, I am sure that is not the only land available. Who owns the land where the hospital would go in Unicoi? Think about it!
The fair and legitimate reason to keep it Erwin is because it is Erwin's hospital. It would be centrally located for the people of Unicoi County. It would benefit the whole town and county. It could possibly bring in business to Erwin and Unicoi County, not just Unicoi. The more business that is brought in to Unicoi, the closer that is to Johnson City. It doesn't benefit Erwin or Unicoi County.
Physicians will come where they will be successful and utilized and there is potential for growth. Its just about location. I would rather see Wellmont take over the hospital if they would agree to keep it in Erwin. I think it would be better for the county in the longrun. If Erwin could incorporate the location where the hospital is built would be the next best thing.
Imker writes:
October 15, 2012
8:11 AM
The growth is coming from the direction of Johnson City, and the town of Unicoi will be growing with it. Unicoi is a young town. Erwin is mature. The town of Unicoi will be providing more services in the future, as the services are required. No, the key specialty physicians will not come to Erwin. They are in Johnson City now. They will drive over for the day and provide key services if they can get there and back easily. In the future and not very far away, the town of Unicoi will double in size.
webe4ut writes:
October 15, 2012
10:04 AM
Oh yeah, there is such a high demand to refurbish cabins and ice-cream get togethers. Unicoi is going to boom!!
Imker writes:
October 15, 2012
11:06 AM
Yeah you're right, what we need is a big ugly lumbar yard right at the exit, so when people drive by on 26, they're thinking.... oh how charming. Let's go spend some money there. Charm is what the whole county needs. Ask any real estate agent about first impressions and the effect on the money people are willing to spend.
IMHO writes:
October 16, 2012
10:58 AM
Just something to think about here...When my family and I moved to the area, we didn't know that there had been quite a debate among MSHA and Cigna health insurance in which MSHA felt that Cigna does not pay enough to MSHA for it's health services; therefore, MSHA and it's affiliated physicians and clinics no longer serve patients who have Cigna as their insurance provider. Mind you, there are some large companies in the area whose employees have Cigna insurance, and this did not persuade MSHA to continue offering services for these many people. Those who have Cigna insurance must seek out Wellmont providers, who do still serve patients with Cigna coverage. Wellmont has even begun to extend it's services to Johnson City to help those patients who do not live in Kingsport, Bristol, and other areas where Wellmont services are offered. This tells me that Wellmont is willing to extend services to not only help it's business model, but to also help it's patients who have been left out in the cold by MSHA. So, I would ask those in Unicoi and Erwin...do you want a hospital, physician, clinic, etc., to promise services to only later eliminate them due to the fact that they feel they are not being paid enough for services rendered?...because we all know those bills sent to patients and insurance companies are always so modest...ha!
Decide who you think you can rely upon to continue to provide quality, reliable, fair services to you and your families (because this is what it all comes down to and what will effect you most). I can tell you that MSHA is NOT doing that for mine! Do you want to choose a health alliance that could at some point deny you and your family health care requiring you to drive to the next city or town anyway? That is the reality that MSHA has provided for my family and I.
I am so very thankful for Wellmont, it's hospitals, physicians, clinics, and services! I couldn't be more pleased!
knowledge writes:
October 23, 2012
11:31 AM
Whomever wins, I hope the board puts a stipulation into the contract keeping the hospital in Erwin. The hospital should be centrally located in this county,not on the north end!