06-29-2005, 12:13 PM
UAB begins regulatory moves to buy HealthSouth hospital
Wednesday, June 29, 2005
DAVE PARKS
News staff writer
UAB can start a regulatory process needed to acquire HealthSouth Medical Center on Southside and can make affiliates of three Montgomery-area hospitals, University of Alabama trustees decided Tuesday.
The executive committee of the UA System board of trustees made the moves unanimously in a telephone conference.
The trustees approved a measure allowing the University of Alabama at Birmingham to seek licensing approval from the State Health Planning and Development Agency for 199 hospital beds that had been located at the HealthSouth Metro West Hospital. The hospital closed in September 2004, and UAB needs the licensed beds as part of an ongoing effort to acquire the Southside hospital.
Capacity an issue:
The action Tuesday was a sign that negotiations for the hospital are progressing, said David Hoidal, CEO of the UAB Health System.
There still are issues to be resolved, but the acquisition might be complete by the end of the year, he said. "We are moving as rapidly as we can," he said.
The UAB system needs more beds and will use the 199 beds even if it doesn't acquire the Southside hospital, Hoidal said. "One of the issues we continually face is sheer capacity," he said.
HealthSouth Medical Center on Southside is licensed for 219 beds, but those beds are being shifted to HealthSouth's new hospital on U.S. 280. HealthSouth is attempting to sell that hospital, which is still under construction and is technically a replacement for the HealthSouth Medical Center on Southside.
Andy Brimmer, a spokesman for HealthSouth Corp., said transferring beds from Metro West to UAB still needs approval. "It's really going to be up to the state."
Hoidal said he didn't anticipate any opposition in the certificate of need process. "Those beds are sitting idle out there now, not serving anyone's needs."
Meanwhile, trustees gave UAB approval to make the Baptist Health of Montgomery hospital system a member of the UAB Health System. The system has three hospitals: Baptist Medical Center South and Baptist Medical Center East, both in Montgomery, and Prattville Baptist Hospital.
UAB took over management of the three hospitals 15 months ago to improve their financial performance.
The trustees created a health care authority for the three hospitals, and a new governing board will be formed. Six members will be selected by the UA System and five members by Baptist Health. The Baptist Health name and faith-based mission will stay the same, but the hospitals will be affiliates of the UAB system.
Hoidal said the three new hospitals fit well into UAB's medical education and research missions. In addition, the UAB System will gain revenue from the relationship, and the hospitals will gain skilled management, medical expertise and purchasing strength.
"We have found a multitude of instances whereby the two systems are able to benefit each other in the public interest," Hoidal said.
John Henig, chairman of the Baptist Health board of directors, said the move ensures the "long-term viability" of the hospitals.
Wednesday, June 29, 2005
DAVE PARKS
News staff writer
UAB can start a regulatory process needed to acquire HealthSouth Medical Center on Southside and can make affiliates of three Montgomery-area hospitals, University of Alabama trustees decided Tuesday.
The executive committee of the UA System board of trustees made the moves unanimously in a telephone conference.
The trustees approved a measure allowing the University of Alabama at Birmingham to seek licensing approval from the State Health Planning and Development Agency for 199 hospital beds that had been located at the HealthSouth Metro West Hospital. The hospital closed in September 2004, and UAB needs the licensed beds as part of an ongoing effort to acquire the Southside hospital.
Capacity an issue:
The action Tuesday was a sign that negotiations for the hospital are progressing, said David Hoidal, CEO of the UAB Health System.
There still are issues to be resolved, but the acquisition might be complete by the end of the year, he said. "We are moving as rapidly as we can," he said.
The UAB system needs more beds and will use the 199 beds even if it doesn't acquire the Southside hospital, Hoidal said. "One of the issues we continually face is sheer capacity," he said.
HealthSouth Medical Center on Southside is licensed for 219 beds, but those beds are being shifted to HealthSouth's new hospital on U.S. 280. HealthSouth is attempting to sell that hospital, which is still under construction and is technically a replacement for the HealthSouth Medical Center on Southside.
Andy Brimmer, a spokesman for HealthSouth Corp., said transferring beds from Metro West to UAB still needs approval. "It's really going to be up to the state."
Hoidal said he didn't anticipate any opposition in the certificate of need process. "Those beds are sitting idle out there now, not serving anyone's needs."
Meanwhile, trustees gave UAB approval to make the Baptist Health of Montgomery hospital system a member of the UAB Health System. The system has three hospitals: Baptist Medical Center South and Baptist Medical Center East, both in Montgomery, and Prattville Baptist Hospital.
UAB took over management of the three hospitals 15 months ago to improve their financial performance.
The trustees created a health care authority for the three hospitals, and a new governing board will be formed. Six members will be selected by the UA System and five members by Baptist Health. The Baptist Health name and faith-based mission will stay the same, but the hospitals will be affiliates of the UAB system.
Hoidal said the three new hospitals fit well into UAB's medical education and research missions. In addition, the UAB System will gain revenue from the relationship, and the hospitals will gain skilled management, medical expertise and purchasing strength.
"We have found a multitude of instances whereby the two systems are able to benefit each other in the public interest," Hoidal said.
John Henig, chairman of the Baptist Health board of directors, said the move ensures the "long-term viability" of the hospitals.