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Three Rural Hospital Operations Acquired by
Community Partners
Tulsa, Oklahoma 7-10-06
The Tulsa-based hospital company Community Partners announced Monday that it has
completed a purchase agreement for three rural hospitals in Oklahoma from Nashville based
Ardent Health Services LLC. The purchase agreement includes the operating assets of the
Pawnee Municipal Hospital, the Bristow Medical Center, and the Cleveland Area Hospital. In
addition each of the communities have agreed to a 10-year lease of the land and buildings to
Community Partners.
Community Partners’ CEO Joe Gunn said, “Our operating model is different from most rural
hospital companies. We believe that by bringing the right kind of healthcare services back into
a community, we can help ensure that the health resources local residents deserve will always
be there when they need them. Quality healthcare doesn’t always mean having to make a trip
to a medical facility in a large city.”
Executives at Community Partners will be spending time at each facility over the next few
weeks to discuss the future direction of each hospital and the services the hospital offers or
could offer. Chief Operating Officer Kevin Gunn reported that each hospital will be adopting a
new mission statement and planning a community re-dedication ceremony. “We have been
warmly received in each of these communities and look forward to our partnership together.”
Vice President of Finance and Business Development David Yackell stated, “We will be working
with each hospital to enhance existing services while identifying needed services that could be
brought to each community. Technology will also play a role in how we enhance services.”
New multi-slice CT scanners are already slated for delivery to each facility and other technology
such as computer systems, lab equipment upgrades, emergency room equipment upgrades,
and other radiology upgrades are priorities on Community Partners to-do list.
When asked about personnel or other operating changes within each hospital company CFO
Mark Liston said, “We realize the importance of these jobs in each community and the impact
they have on the local economy. We have no plans for lay-offs or staffing cut backs. We
realize that you can not cut your way to stability or profitability.”
About
Community Partners LLC owns and manages hospitals in the southern United States.
Headquartered in Tulsa, Oklahoma the executives of Community Partners have over 90 years of
collective executive-level healthcare, human resources, and finance experience in both large
and small hospitals. The mission of Community Partners is to bring resources to hospitals that
will help maintain their stability and strength so that the communities will have healthcare
available when they need it. To learn more about Community Partners visit www.communitypartners.
com.

Ardent continues to restructure Oklahoma
operations

-Oklahoma

Ardent Health Services, Nashville, said it signed a letter of intent to transfer its leases on four small, rural hospitals in Oklahoma that don't fit its operating strategy for the region. Community Partners, a family-owned company in Tulsa, Okla., is conducting due diligence on the hospitals, which are located in Bristow, Cleveland, Pawnee and Wagoner, said Randy DuBois, chief executive officer of regional hospitals at Ardent's Hillcrest Health System, Tulsa. The hospitals are somewhat underutilized, with an average daily census ranging from 3.6 to 8.3, DuBois said. The deal is expected to be completed in late summer. Ardent will retain four hospitals in Oklahoma -- two in Tulsa and one each in Cushing and Henryetta. Ardent said it has made a longer-term commitment to Cushing, including a capital commitment of $6.7 million to be matched by $8 million from the city of Cushing. The lease in Henryetta does not have an early termination clause but expires in 2007, and Ardent will consider its options then, DuBois said. Hillcrest divested four hospital leases -- including one picked up by Community Partners -- as part of its sale to Ardent in August 2004. -- by Vince Galloro

Wagoner hospital might get new owner

-Wagoner, Oklahoma - 03-10-2006

WAGONER- No one has inked a deal yet, but administrators at Wagoner Community Hospital say they’re excited about possible new management.

“We hope this works,” said Louise Easter, interim chief executive officer. “We’re real excited about this.”

Easter was speaking about Community Partners LLC, which specializes in managing rural hospitals and is evaluating the Wagoner facility. They are also evaluating hospitals in Cleveland, Pawnee, and Bristow, and have a letter of intent with current management company Ardent Health Services. Ardent is terminating its operating lease on the Wagoner hospital effective Aug. 31.

B. Joe Gunn, chairman of the board with Community Partners, said the evaluations have just started and will take approximately three months.

“From our perspective we look at the chances for success here, including demographics and programs that are already in place,” he said.

Wagoner Community Hospital is licensed for 100 beds and has an average occupancy of 30 to 35 including mental health care. The hospital employs 175 people an annual payroll of $7.2 million. It is owned by a city trust.

Gunn and other Community Partners principles toured the Wagoner area Thursday and went to a luncheon with 39 area leaders, according to Diane Lancaster, director of marketing at Wagoner Community Hospital .

David Yackell, vice president of finance and business development for Community Partners, said they need the public to have faith in the Wagoner facility.

-By Keith Purtell                                                                                                                                                             Phoenix Staff Writer

Beyond the Numbers: The CFO's Expanding Role

03-03-2006

The role of the chief financial officer keeps getting tougher and tougher and the number of hats the CFO must wear keeps increasing. The public perceives the CFO role simply as the corporate executive having financial authority to make appropriations and authorize expenditures for a firm, but that definition is increasingly inadequate to describe the decisions that CFOs increasingly find themselves having to make.

CEOs in industries across the country are delegating additional executive-level responsibilities to the CFO and given declining reimbursements, thinner profit margins, and deteriorating cash reserves, the hospital CFO is no exception. Presently and historically, the CFO position has required an exceptionally high degree of technical skills in the areas of financial reporting and controls. However, when describing the CFO’s role in hospitals or any other business organization today, one has to go far beyond this simplistic description. In essence, the CFO has become one of the CEO’s strongest partners with respect to strategic planning and rather than just “running the numbers,” the CFO should now be providing constructive input and counsel on running the business. Perhaps Roberto Goizueta, former chairman and CEO of Coca-Cola Bottling Corp., nailed the new definition of the CFO when he said, “the secret isn’t counting the beans. It’s growing more beans.”

Over the years, the tools have grown to encompass an ever-wider array of skills. But most importantly, today’s successful hospital CFO needs these attributes more than ever before:

• Leadership skills: Ross Perot once said, “inventories can be managed but people must be led.” Hospital CFOs today not only are asked to provide their perspective or opinion on new ventures or organizational direction, but are expected to provide leadership and direction to members of the administrative staff, departmental managers, board members and the medical staff on how to achieve the stated goals and objectives established by the hospital. One who has strong leadership skills is able to improve the quality of, and contribute to, the discussions leading to the decisions being made.

In addition, one can view a CFO with strong leadership capabilities as a major asset to the CEO. Unlike a chief operating officer, CFOs who are strong leaders in the hospital don’t create an organizational barrier because they don’t stand between the business and the CEO. Strong leaders are those who possess the ability to promote and develop positive and constructive relationships within the hospital. Having the ability to speak well, listen well, understand how things are done and knowing how to win people over rather than running them over is highly important.

• Strategic thinking skills: According to Jonathan Swift, “vision is the art of seeing things that are invisible.” Lack of vision is one of the most common complaints by CEOs and governing boards when speaking of their CFOs shortcomings. Balancing the roles of a “steward” and “strategist” has become commonplace for CFOs. Lack of strategic thinking skills can be problematic for hospital CFOs especially when they must continually think ahead in order to survive reimbursement cuts or payment reductions. Just because a CFO has to possess technical and logical skills does not mean that he or she can’t be creative and think with the right side of the brain.

In short, one can’t expect to meet the challenges of today with yesterday’s tools and expect to be in business tomorrow. The CFO has to be able to recognize what hospital programs are profitable and what potential services can be financially beneficial since these are the lifeblood of the organization and most importantly, allow the hospital to offer unprofitable but much needed healthcare services to its market area. Moreover, the CFO has to play a leading role in the creation of the hospital’s strategic plan given that financial pressures most likely will govern what can and what can’t be done by the organization. Being able to provide the strategic planning team with both creative foresight and the occasional dose of reality is extremely important in tailoring and further refining the hospital’s vision for the future.

• Communication skills: Whether it is written or verbal, strong communication skills are vital to the success of the CFO. Undoubtedly, CFOs have to possess the required technical skills to perform in their capacity but just as important is the CFO’s ability to clearly explain the numbers, the hospital’s business operations and it’s short- and long-term strategies. Although reading financial reports may be easy for finance professionals, it is not so easy for those without a financial background. It is imperative that the CFO be able to present, explain and discuss such financial reports to departmental managers, members of the administrative staff as well as members of the board so they can make reasonable and prudent decisions on behalf of the hospital.

Unfortunately, many boards of smaller rural hospitals across the country are comprised of individuals who don’t necessarily possess a high degree of business or financial experience but merely agree to serve on the board in an effort to make a contribution to the communities in which they live. For many CFOs, stumbling from the dark corners of the back office into the limelight can be quite a traumatic experience. Nevertheless it is a skill that has to be developed in order to be an effective CFO.

Further, a lack of writing skills can also impair the CFO’s reputation because in most cases, the reader will typically equate poor writing skills with poor technical skills. The CFO doesn’t need the talent necessary to win the Pulitzer Prize but having the basic skills to write an effective letter or other communication piece is fundamental to gaining respect from one’s superiors, subordinates and others and its importance should not be minimized.

The evolving role of the CFO now means much more than counting beans. Simply put, the CFO position has morphed into a high level executive position that requires a wide range of skills and competencies. Unfortunately in most cases, the CFO position is never one that is glamorous or uncomplicated but nevertheless is vitally important to the organization’s future success.

CEO and Vice President Position Announcements

-Tulsa, Oklahoma - 05-17-2005

With promising business expansion opportunities and a recent capital infusion, Tulsa , Oklahoma based Community Partners announced significant positive movement in several key executive level positions on Monday.

With a 'decade of combined experience in human resources and healthcare Kevin Gunn will move into the company's Chief Executive Officer position. Prior to accepting the CEO position, Mr. Gunn served for 3 years as the company's Vice President of Operations. He will remain the Chief Executive Officer of Community Partners' human resources affiliate company, Community Resources. In a recent interview, Mr. Gunn said, "This is an exciting time for our company as we position for continued future growth. I believe in what we're doing and am proud to be a part of it.”

David Yackell has become the company’s Vice President of Finance and Business Development. Mr. Yackell brings over 22 years executive-level healthcare finance experience to Community Partners.

Most recently, he worked at Hillcrest HealthCare System in Tulsa as the Vice president and CFO for their Regional Hospital Division which supported a system of 10 rural hospitals.

About
Community Partners along with its human resources affiliate company, Community Resources, is a best in class healthcare company that owns and manages hospitals in the southern United States . Headquartered in Tulsa, Oklahoma with branch offices in Dallas, Texas; the executives of Community Partners have over 90 years of collective executive-level healthcare, human re­sources, and finance experience in large urban systems and smaller stand alone non-urban hos­pitals. The mission of Community Partners is to bring resources to hospitals that will help main­tain their stability and strength so that the communities those hospitals serve can depend on their hospital when they need it. To learn more about Community Partners visit www.community-partners.com.

9-13-2005 -  Hospital board moves forward with management plan

Gymon, Oklahoma - 09-13-2005

At a special Board meeting Tuesday night the Memorial Hospital of Texas County Board of Control voted to support a contract management plan presented by Community Partners (a Tulsa-based healthcare company). Working together with the MHTC Board of Control, local physicians, and hospital staff, Community Partners will develop a plan to reverse the hospitals current negative financial trend. Community Partners Chief Financial Officer Mark W. Liston CPA, FHFMA stated, “We’ve studied MHTC’s operations and feel that there are opportunities to reduce costs and make financial gains without sacrificing the quality patient services Guymon area residents have come to expect from MHTC.”

Other aspects of the plan include: assisting the Board in the recruitment of a Chief Executive Officer, development and implementation of new services, and better communication with the public and staff of the hospital. “Over the last month, we have worked very closely with the Medical Staff and Board of Control with a new spirit of cooperation and open communication and have already seen some very positive results.” said the current Interim Chief Executive Officer Jim Grocholski MS, CHE.

Community Partners Chairman B. Joe Gunn said, “Our company is honored to have been invited into this community to assist in the revitalization of the hospital. Guymon area residents can take pride in MHTC, it is a high quality and up-to-date facility”.