SAMC files for bankruptcy

By Trisha Maldonado
Douglas Dispatch
Published/Last Modified on Wednesday, February 13, 2013 11:02 AM MST


Southeast Arizona Medical Center (SAMC) filed for bankruptcy on Feb. 8.


Southeast Arizona Medical Center applied for Chapter 11 bankruptcy last week. SAMC officials says they are planning no layoffs or reduction in hours. Bruce Whetten/Douglas Dispatch

According to Annie Benson the Chief Executive Officer for SAMC, they have filed for Chapter 11.

Chapter 11 is a chapter of the United States' Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States.

The CEO and Jim Riley, president of Community Healthcare of Douglas, informed the employees of the filing Friday morning.

“The employees who have been with us for a while didn’t seem to be worried,” Benson said.

According to Benson they have been through this before in 2000 and they survived.

“There will be no changes,” she said. “We will continue to service our patients as we always have.”

There currently are no plans for layoffs or cutting hours. They will not fill any positions if they become available unless they are significant positions.

Sierra Vista Regional Health Center (SVRHC) will continue to help SAMC during the next 90 days until a new company is chosen to operate the facility.

SVRHC has loaned SAMC over $1 million, Benson added. The new company that comes in to operate the hospital will have repay those funds back to SVRHC.

SAMC applied for Arizona Health Care Cost Containment System’s Safety Net Care Pool on Oct. 2. On Nov. 27 AHCCS had approved the application and had submitted it to Centers for Medicare and Medicaid Services (CMS) for further review. As of Feb. 8 CMS has not approved or denied SAMC’s application.

Benson said “the bankruptcy will not effect if the state accepts their application.”

The Arizona Health Facility Authority provided SAMC with a grant in the amount of $25,000 to pay for a consultant that came to the hospital in January.

“He recommended the new computer billing system that we have and he also felt the aquatics program we would like to start would be a good way bring in revenue,” Benson said.

Benson also believes the Patient Protection and Affordable Care Act also known as the Obamacare will have a positive impact on the hospital.

When asked what her short term goals for the hospital were Benson said “getting through the next 90 days and having someone come in here and help us get back on our feet.”

Benson added she would still would like to have a hospital built in Douglas.

“Having a hospital built in Douglas has always been my long term goal,” she said.

Comments

    56RRB wrote on Feb 28, 2013 11:14 AM:

    " Stop trying to raise more taxes with a special district! ! ! JUST MAKE US A GOOD HOSPITAL. Obama and the democrats promised us one so just do it. "

    Martin D. wrote on Feb 27, 2013 1:01 PM:

    " OK JR54 I took your advise and checked with the county about how many special districts there are in Cochise County. I got the information from the county's web site THERE ARE 57.
    22 School Districts
    17 Fire Departments
    12 Water and Flood Control
    2 Hospital (Willcox & Benson)
    2 Capital Improvement
    1 Park
    1 Library

    I hope that "Cucos Nest" know knows what a special tax district is and how it might help solve the problem with the hospital here in Dougals. "

    JR54 wrote on Feb 26, 2013 8:29 AM:

    " Responding to Cucos nest: Your reference to California ideas about forming a hospital district is totally without merit. Special taxation districts have been a part of Arizona government for many many years. They are admisistered by the county. If we didn't have them Pirtleville and Sunnyside would not have fire departments. Wilcox would not have a hospital. Check with the county and see how many special taxation districts exist in Cochise County. The people in those districts vote on and control the money and run the operation. Forming a hospital district is one option that needs to be seriously considered. If you want something you have to pay for it. Nothing is free even though the liberals and the freeloaders think that way. "

    Tony romas wrote on Feb 25, 2013 8:11 AM:

    " I think they should cut benefits on all those people living at the courts and casas de esperanza to help the hospital. Seriously take away some food stamps and cash assistance and help the hospital. "

    Old timer wrote on Feb 22, 2013 10:39 AM:

    " A long time ago the county ran the hospital, why don't they go back and have the county run it? "

    Cucos Nest wrote on Feb 22, 2013 8:41 AM:

    " We need jobs jobs jobs,, kick out or outnumber the liberal minded give me more govt, leaches, and doesn't the California brain, see the financial mess California is in? No thanks keep your ideas "

    Refugio M. wrote on Feb 21, 2013 4:45 PM:

    " We were promised from the Democrat people here in Douglas that the new Obama Care was going to build and pay for hospitals in poor towns and we were going to get a new hospital and more doctors very soon. When is that going to happen? or did thy lie to us just so we would vote for Obama and his democrats? "

    Hector wrote on Feb 21, 2013 3:05 PM:

    " If the city would raise the sales tax by 1 cent then place a special tax on the hotels so visitors will pay and not locals, then place a special fee on all fines from the court, then give all the money to the hospital. We would have enough money to have the best hospital in all of Arizona. It just takes creative ways of raising money. "

    chimichanga wrote on Feb 21, 2013 11:21 AM:

    " I agree with Veteran. But it's not only those that are on government assistance. It's also Mexican citizens who are doing the same thing. The Mexican ambulance brings them across to the Port of Entry and one of our ambulances goes and picks them up to take them to the hospital. The ambulance alone costs very much and that doesn't even include the hospital stay and expenses, or if they have to be air lifted to Tucson. It's the same for the Indians (not Native Americans) that come through the POE or that are caught by Border Patrol. And people wonder why they are losing money. "

    Fam. Rodriguez wrote on Feb 20, 2013 3:38 PM:

    " We the people of Douglas want and need a hospital. I want to know who is responsibile for giving us a hospital? Who ever they are they better do there job. "

    Why-not wrote on Feb 20, 2013 11:26 AM:

    " To John:
    You obliviously don’t know the difference between an Urgent Care facility and a Hospital! So when you have a Heart Attack, Stroke or your family get in an Automobile accident with life-threatening conditions I want to see you thank Dr. Romo for all he has done for you!!
    To Outsider:
    You are correct on one thing and one thing only, our community does deserve a hospital! But after reading what you had to say about the staff, that only tells me that they made a great decision to get rid of you as employee. I have to agree with Ex-Employee, the current staff is struggling with what Bickel and his previous staff which would include “outsider” to do their best with what little resources they got. Criticizing the current staff has nothing to do with past management and financial issues that our hospital is in at this time. All this negative vibe to our hospital staff just show how resentful “outsider” is about losing their job. I hope that our Hospital could get back on their feet and give the Douglas community what we need for our care. Thank you to all the hospital employees for doing an awesome job! "

    J. Montrose wrote on Feb 19, 2013 8:30 AM:

    " Reading all the bickering about former and current administrations at the hospital does not solve the problem. Remember, no matter who was or is the CEO, SAMC would still have failed. The entire way health care is provided must be changed. Jose Luis' comment about forming a hospital district might have merit. I think the hospital in Wilcox is that way. If the people of Douglas don't act soon, you will not have any hospital for your needs. "

    ex-employee wrote on Feb 17, 2013 7:59 PM:

    " To outsider, For sure SAMC is in this situation because of previous negative staff like you and Bickel who ruined the facility. The current staff is struggling to work with what he left, there are still hard working nurses, techs, admission, and HR department,etc, trying to do their best to serve the Community with the little resources Bickel left. Our Community NEEDS a hospital not an urgent care, as you stated, there are many elderly transported to Sierra Vista or Tucson because unfortunately SAMC currently doesn't have the appropriate staff to care for them. It is time for the community to realize how important Healthcare is and how devastating it will be for many if the nearest hospital is 30 minutes away. "

    Veteran..... wrote on Feb 16, 2013 9:30 PM:

    " The only thing that keeps the hospital operational, are those receiving government assistance. You see the same people with their snooty kids. Since they're not paying for it, it's up to us taxpayers to pick up the tab. When are we going to say, enough is enough? Waiting time is too long and ridiculous! By the time I go to the Bisbee hospital and be seen, I would have still been waiting in the waiting room to be seen. "

    DLC wrote on Feb 15, 2013 5:59 PM:

    " whats crazy is in the Midwest states,hospitals are in the larger cities and the smaller clinics are connected with the larger hospital,and they correlate everything instead of having so many parties involved.Why can't they do this simple thing? "

    chimichanga wrote on Feb 15, 2013 5:53 PM:

    " Raise taxes on the rich and on businesses. Leave them alone this isn't about class warfare. I heard many employees say when Bickel came in the the hospital was gonna go down further and I guess they were right. I'm surprised it hasn't shut down completely. "

    Jose Luis wrote on Feb 15, 2013 10:54 AM:

    " Here is an option for fixing our hospital, they have done this in California. Form a hospital district. Just like there are fire districts here. There would be a localy elected board of directors and a tax base to fund the hospital. If the people of Douglas are serious about having a good hospital then they will have to pay for it. I think a hospital district is one option that should be seriously looked at. "

    John wrote on Feb 15, 2013 8:49 AM:

    " I am happy that Cooper Queen Clinic will open an Urgent Care facility in Douglas. We need a dependable healthcare facility in our community that is respectful and trustworthy. Thank you Doctor Romo!! "

    DC wrote on Feb 14, 2013 2:04 PM:

    " I think all of our local political leaders from the mayor and city council, our congressman, our governer, our senators need to get us government funding so that we can have a number 1 hospital for all the peoples of douglas. government needs to take care of the peoples. raise taxes on rich people and on business. "

    Outsider wrote on Feb 14, 2013 12:14 PM:

    " The community deserves a hospital, I'm hoping whomever will come in a buy it will replace the WHOLE board, they are the reason why this facility is the way it is. Bringing in Bickel was the worse thing they could have done, and allowing him to run down the facility continuously was horrible. The leadership in that facility isn't the best, the new CEO is completely lost. Vendors aren't supplying the hospital at this point, so lab can only perform certain test. SCARY when your family member maybe having a heart attack they may not have the test so it will only take that much longer. HR can't even answer questions she's completely CLUELESS! Always stating I have to call Sierra Vista because I DON'T KNOW. why would they put someone who has NO knowledge. Thank god I'm no longer there. That place needs a whole new make over starting at the top. Until they figure out what is going on the community needs to drive down the road 20 minutes and get better care. A new hospital is whats needed with new board, staff, and attitudes! "

    tucsonan wrote on Feb 14, 2013 2:40 AM:

    " douglas send patients to sierra vista, and sierra vista sends patients to tucson hospitals. i see it all the time. douglas has many senior citizens that need the care in town, maybe not so far away from town. an urgent care center would be good, in order to have the less serious patients go there instead of overflowing the emergency room at the hospital. douglas needs to invest in this in order to keep residents in town, instead of moving out of town to make sure they have appropriate healthcare close by. "

    Rafael Q. wrote on Feb 13, 2013 5:10 PM:

    " When is Douglas going to wake up and realize that business as ususal at he hospital can not continue. The Sierra Vista Hospital should have not loaned any money to the Douglas hospital. The Douglas hospital should have filed for bankruptcy years ago. Then the hospital could have been remade into a leaner and more efficient operation. The more you put off solving a problem the more the people of our community will suffer with sub-standard care. "

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