Facing millions of dollars in losses, Tyrone Hospital is looking at its options to allow it to continue operations.
Last night, an annual meeting was held that included a presentation of reports to its board. Tonight, a meeting is scheduled between Tyrone Hospital officials and representatives of the Altoona Regional Medical Center to discuss the possibility of a joint effort.
According to hospital spokesperson Theresa Yanchez, the hospital board’s president Judy Norris reported last night that Jim Barner, Altoona Regional CEO, sent an exploratory letter to Tyrone in April requesting an opportunity to sit down with Tyrone and discuss possible options. Yanchez also confirmed the hospital is exploring its options regarding a Chapter 11 bankruptcy.
Yanchez said tonight was the first opportunity the representatives involved were available for the meeting due to the summer and vacations.
“This will be their first opportunity to have a broad discussion about how we might be able to work together,” said Yanchez. “There are some things we have in common. There are medical staff members from Altoona that have been on our medical staff for a long time. A lot of people from the area that Tyrone hospital services also utilize Altoona Regional.
“We have had a working relationship as we work as a player within this region, so it seems logical to have this discussion with them,” said Yanchez. “All of this is…because it is very challenging for little hospitals like ours to manage in these times.”
Tyrone Hospital has also been dealing the results of court proceedings involving a lawsuit brought on behalf of a boy who suffered medical problems after his birth at the hospital in the mid 1990s.
Earlier this year, a jury awarded more than $4 million in the case. The hospital and a doctor involved in the case have been seeking to have the reward reduced or have the case retried with a limited award amount. Judge Hiram Carpenter issued a gag order in June to prevent the parties involved from talking about the case.
The jury decided that gynecologist, Dr. Roy Pazmino, and Tyrone Hospital were responsible. The jury divided that responsibility at 80 percent to Pazmino and 20 percent to the hospital’s obstetrical nursing staff. Pazmino did not work for the hospital when the boy was born.
Insurance will cover $1 million for the hospital and will cover $1 million for Dr. Pazmino, which adds up to $2 million. If the doctor can’t pay his remaining portion of the award then the hospital would be responsible to pay it. Yanchez said the amount after insurance is $2.5 million.
“Hospital leaders indicated having that type of responsibility added on our shoulders would be very difficult for us,” said Yanchez.
Chapter 11 is being looked at by the hospital “because of the financial picture of the hospital at this point in time”, according to Yanchez. The hospital’s CEO Walter Van Dyke had mentioned the possibility of Chapter 11 bankruptcy in early March as an option if the facility can’t find relief from the jury award in the legal system. Yanchez said no decision on bankruptcy has been made at this time.
She did indicate that decisions regarding the hospital’s future were likely to happen as soon as the coming weeks or months.
Regardless of the award issue, Yanchez said Tyrone hospital CFO George Berger reported operating losses for the fiscal year ending in June were $2.2 million. In fiscal 2005, the loss was $1.5 million.
