The Western Medical Plaza, a subsidiary of Doctors Hospital, is facing closure due to financial constraints, according to a very reliable source.
Though no date has been set as to when the medical facility would be closed, this would leave some 60 medical persons out of a job.
Just last month, Doctors laid off 15 per cent of its workforce as a result of negative trends in the Bahamian economy.
In an exclusive interview with The Guardian over the weekend, the source also said that in the face of financial difficulties, CEO Mr. Barry Rassin is being pressured to resign.
However, Mr. Rassin has neither confirmed nor denied the “imminent” closure of the WMP, when contacted by The Guardian. And, he also refuted claims that he is being pressured to resign as CEO.
The source stated that at a recent Board meeting, there were various dissenting views amongst members, who argued that some of them were “in bed” with the CEO.
They also contended that the CEO has made many “bad financial decisions” and that closing the WMP is in the best interest of the company, added the source.
Moreover, it has been further suggested that employees in the main facility, Doctors, have been asked to make sacrifices by assuming more responsibilities, the source said.
Should Mr. Rassin resigns as CEO; the Board would determine a successor.
Formerly Rassin Hospital after its founder the late Dr. Meyer Rassin, father of Barry Rassin, Doctors Hospital located on Collins Avenue and Shirley Street became more widely owned in 1986.
Over the years, Doctors has been promoting its institution as an alternative to the private section of the state-owned Princess Margaret Hospital.
But Doctors, in its 2002 financial report, revealed hardships faced during the previous years, and plans to deal with oncoming challenges.
On December 16, 2002, Doctors Hospital Health System (DHHS) reported results for the third quarter ended October 31, 2002.
“The Health System’s fiscal year continues to be one of notable achievements punctuated by financial disappointments,” the company said.
It said based on the business trends evidenced over the past nine months, “Doctors Hospital expects anemic financial performance through the remainder of the current fiscal year ending January 31, 2003.”
The company said that, “aggressive steps are being taken to manage available resources. We are also taking steps to obtain additional funding should circumstances require them.”
In August 2002, Doctors Hospital concluded negotiations with Family Guardian for the disposition of its investment in Doctors Hospital and the related investment in BahamaHealth.
“The sale of this investment was critical for the Health System as management continued to focus its efforts and resources on its core business,” the company said. “DHHS realised a gain of $1.7 million on the disposition. Despite the divestiture, Doctors Hospital remains a primary provider for BahamaHealth.”
The company noted that the public has been very responsive to the introduction of the DHHS/Royal Bank of Canada Credit Card.
But it said that the highlight of the quarter was the opening of the Family Medical Centre at the Western Medical Plaza under the guidance of Dr. Graham Cates.
“The foundation for financial success at the WMP is now firmly in place and in the coming weeks DHHS will unveil a series of marketing initiatives to promote awareness and utilisation of the services,” the company said.
Noting its fiscal performance, the company said financial results for the period continued to trail those of the prior-year period. Net patient service revenue declined 8.9 per cent; total revenues of
SEE WESTERN, 3BR
$7.6 million were 0.8 per cent behind that of the corresponding period last year. Excluding capitation revenues from the PHO, representing 7.7 per cent of current period’s total revenues, the decline was 8.4 per cent compared to the prior year period.
“The Health System’s fiscal year continues to be one of notable achievements punctuated by financial disappointments,”
The company further stated that non-operating income of $1.7 million was recorded to reflect the gain on disposition of the PHO.
“This contributed heavily to reducing the overall net loss performance for the quarter. Hence, the company reported a net loss of $0.2 million, or $0.02 per share, compared to a loss of $1.1 million, or $0.112 per share, in the comparably prior-year period,” the company said.
It said that because of these negative trends, “we have advised our managers and associates that there is a possibility of layoff of as much as 15 per cent of our workforce.”
The company said that its financial performance continues to be negatively affected by the general downturn in the Bahamian economy. And, that the company is making no predictions about the length and extent of the weak economy.
Making no predictions about the length and extent of the weak economy, the company said it would remain optimistic while planning for all possibilities. It also revealed that new revenues from Bally Total Fitness and segments of the WMP mitigate the negative results, the overall financial results reflect a significant falloff in volumes in DHHS’s core facility, Doctors Hospital (Bahamas). The impact, said the company, has been broad in scope and not limited to any single operational area or company, including WMP.
Despite generally weak results, the company said that the level of taxation has been unabated. “In fact, the level of business license and real property taxes, customs duties and work permit fees continues to be burdensome. The current year’s performance has made these taxes especially onerous.”
Within the past three years, businesses license taxes averaged $0.3 million, the company said. Additionally, despite global shortage of nurses and medical technicians, work permit fees paid exceed $0.3 million. Real property taxes typically surpass $0.2 million annually. Also, customs duties on medical supplies while taxed at an average rate of $35 per cent, frequently extending to 45 per cent.
“These taxes are not applied in the public sector, nor are they a cost of doing business for the private components of the public sector,” the company said.
In order to recover some of its losses, Doctors said that several
undesirable but financially necessary steps will be taken:
1. Deposit requirements will be instituted ﾗ for the customers of companies who consistently take excessively long periods to settle claims.
2. Prompt Pay Lawsﾗwill be advocated. DHHS will petition the Government to introduce prompt-pay legislation to protect healthcare providers who become victims of insurance companies.
3. Legal actionﾗwill be taken. Until such time as proposed prompt-pay legislation is in place, DHHS will take legal action to help ensure timely payment for services provided to the customers of insurance companies and employees of private businesses.
By Lindsay Thompson, The Nassau Guardian
