Hope for Fulton Medical Center

Fulton Medical Center is a 37-bed, acute-care facility. Though a debt with the IRS threatened to close the facility, recent news suggests it may remain open into the new year.
Fulton Medical Center is a 37-bed, acute-care facility. Though a debt with the IRS threatened to close the facility, recent news suggests it may remain open into the new year.

There's still hope the Fulton Medical Center will remain open, according to a man with close ties to the hospital and its CEO.

"They're not closing down," George Ross said with confidence Wednesday.

Ross is the former senior marketing director for EmpowerHMS (the company which attempted to purchase and briefly ran FMC) and still does marketing consultant work for CEO Mike Reece, he said. Reece could not be reached for comment.

In October, Reece told members of the Fulton Rotary Club the hospital might close if it was unable to pay off a $3 million IRS debt by Dec. 31. (See "$3 million in IRS debt may 'tank' Fulton hospital," bit.ly/38doBK6.)

According to Ross, Reece has successfully raised about half that sum, and the IRS is "going to work with" Reece and current owner NueHealth on the terms of payment.

"The hospital is profitable now, did you know that?" Ross said. "Ever since he got brought on board by Empower, (Reece) has run it like a business."

Ross said the hospital's savings have primarily come from ruthlessly cutting back on contracts.

"The (former management of the) hospital made some bad deals," Ross said. "(The money comes from) insurance billings coming in, smart decision making and going through the auditing books."

For example, Ross said, Reece cut ties with one medical equipment rental company that was charging the hospital for many more units of a certain product than the hospital could ever use in a month.

In May, Reece announced plans to purchase FMC from NueHealth. Those plans are still underway, Ross said. (Representatives of NueHealth were unavailable for comment.) One potential path he mentioned involved Reece taking over the hospital's license while the City of Fulton purchased the building and leased it to Reece. In that scenario, the city would have to take on the property's mortgage, plus a $1.5 million loan NueHealth took out against the property, Ross said.

"The city has had conversations with individuals involved with the hospital, but at this point, nothing is concrete," City Administrator Bill Johnson said Friday. "A lot of options have been talked about and discussed. Until we get further down the road, the city will be making no commitments one way or the other."

Callaway County officials have also been involved in those talks, Johnson said. Some plans presented to himself and Mayor Lowe Cannell have involved city and/or county participation, while others have not. However, they're so preliminary the city council hasn't yet been brought into the discussion, Johnson said.

"There are just too many variables involved at this point for the city to make any type of decision pertaining to the hospital," he said. "(However), I don't think it'd be in the community's best interest for the hospital to close. The community needs access to emergency services."

In October, Reece expressed worries about being replaced as CEO by NueHealth. Ross said he believes that worry is overblown.

"The only reason it's profitable now is because of (Reece)," he said. "If they boot (Reece) out, they'll be right back to where they were prior to him coming on."

Engagement efforts

While negotiations and fundraising efforts continue in the background, Fulton Medical Center has continued its community outreach efforts.

From 5:30-11 p.m. Saturday, the FMC will host its first "Snow Ball" at the Fulton Event Center (1915 N. Bluff St.). It'll include hors d'oeuvres, an open bar and music from the Dave Baker Band. The dress code is business casual.

"I think it's a great idea - it gives the public a chance to mingle with the staff," Ross said.

Employees raised funds for the event by selling cookies, he said.

The event is free and open to the public, but an RSVP is required no later than Monday. Email [email protected] or call 573-528-4073 to confirm attendance.

In an attempt to improve engagement and public opinion, the hospital has recently launched efforts to make it easier to lodge feedback and complaints. Ross said he's been frustrated to see nonspecific comments on social media complaining about service at the hospital.

"If they want to change the hospital, they need to give names," he said. "We can replace people who are negative with people who are positive, but you have to be specific."

Customers may ask to speak with public relations director Andrea Bedrosian or Reece directly, Ross said. Lodging complaints promptly is especially important in cases of potential misdiagnosis, he said - the fault could be with a piece of equipment or a staff member, but if the hospital never hears from the patient, they can't address the issue.