By rick kron
Leader staff writer
Without much fanfare the Jacksonville City Council approved the sale of its city hospital Thursday night for about $8.3 million.
North Metro Medical Center was sold to Allegiance Health Management of Louisiana, which has managed the hospital since January 2009.
It will still take about 30 days to close the deal and have all the paperwork signed.
The $8.3 million will go mostly toward paying off bond debt that the city incurred while operating the hospital.
“We’ve still got to work out some financial details,” said Mike Schimming, chief executive officer of the hospital, after thecouncil meeting.
He added that the only change patients and visitors will see will be improvements. “Once the sale is finalized Allegiance will start renovation work on the first floor,” said Schimming.
The approved resolution that authorized the sale states that “to satisfy the needs residents within the Jacksonville and North Pulaski County area, the mayor and city clerk are hereby authorized and directed to execute any and all necessary documents to complete transfer of title to the personal and real property to Allegiance Medical.”
Before this year, the last time the hospital operated in the black was 2003-04, when it closed the fiscal year June 30, 2004 with a $652,000 positive income.
The next year, net income slipped to the other side of the ledger with a $98,000 loss. In 2005-06, losses totaled $804,000, then jumped to $3 million in 2006-07. The 2007-08 fiscal year closed out with a net negative income of $2.38 million.
Allegiance took over management of the hospital in January 2009 with the option to purchase it. The health management group was able to curb the losses and even post a small profit recently.
The hospital will continue to be known as North Metro Medical Center and the board will retain ownership of the medical clinics in Jacksonville and Cabot.
“The board and Allegiance look forward to this new stage of growth as we continue to focus on our renewed vision for NMMC,” the company said in a statement.
“This change of ownership of North Metro will assure continuity of care for our community. An advisory committee comprised of members from our current board of directors and medical staff will work with Allegiance to help manage and grow North Metro’s services,” the statement said.
“The sale of the hospital to Allegiance will ensure that Jacksonville continues to have a fully functioning hospital and emergency room.”
As part of the purchase, Allegiance plans to renovate the emergency room and the old rehabilitation wing.
Allegiance is also planning to add new services such as acute rehabilitation and adult psychiatric services. Plans also call for expanding surgery, laboratory work and medical imaging.
The in-patient geriatric psychiatry unit was expanded to 31 beds this summer, and several out-patient services, such as the Wound Center, physical rehabilitation and home health, have seen growth as well.
Schimming said no personnel or administration changes are planned, and the board and Allegiance expect “a seamless transition.” “We will continue to focus on being your community hospital, providing quality health-care and excellent customer service,” Schimming said. “We look forward to expanding our role in the community and building our partnership with the Little Rock Air Force Base.”
Mayor Gary Fletcher said, “It is important that we keep the hospital open, especially for the air base since they’ve closed their hospital.”
Fletcher said North Metro cannot compete with larger hospitals in the area and must find a niche that still makes quality care available to the community, especially the emergency room.
He said having a hospital in the community is a plus for everyone, including the military, which sees health care as critical when military bases come under review for closures.
In other council business:
In his monthly report to the council, Public Works Director Jim Oakley said the animal shelter took in 110 dogs and 61 cats in October. Shelter officials were able to return 38 dogs and 17 cats to their owners and adopt out 46 dogs and 16 cats. Fifteen dogs and 38 cats had to be euthanized.
Three animal bites or attacks were reported during the month. The aggressors included a lab mix, a lab and a donkey. No one was seriously hurt and no animals were euthanized.
City Engineer Jay Whisker, in his monthly report, said his department issued 15 building permits and two business licenses during October.
His department also performed 140 inspections, wrote 48 warning letters to residents or businesses because of unsanitary, unsafe or unkempt property. The department also had 53 properties mowed and four structures demolished.
The council approved the 2011 action plan for housing and community development, the five-year plan for housing and community development and the analysis of impediments to fair housing choice. All those reports were presented by Theresa Watkins, director of the city’s community development department.
