HAMMONTON -- William B. Kessler Memorial Hospital needs to borrow $14 million or it will be forced to apply for closure, according to a press release issued late Tuesday afternoon.
Kessler is seeking $5 million worth of loan commitments from its physicians and members of the community.
The release said loan opportunities are available to "almost anyone" who can loan $25,000 or more to the hospital.
Kessler also is seeking $7 million worth of loans from area banks.
The hospital already secured a $2 million loan commitment to finance the refurbishing of the radiology department.
"The hospital needs to refinance to strengthen the balance sheet, hire an experienced team to run the hospital, bring in more area practitioners and, with that, create an environment that will attract high-caliber employees and doctors to add (to) the existing base," the release said.
The loans -- which also would help pay for new equipment and renovations -- would be paid back over five years with 4 percent annual interest.
All loan commitments will be held in escrow. Should Kessler fall short of the money required, the hospital would be forced to apply for closure and all money would be returned to lenders.
"Action must be taken immediately to support this essential hospital and turn it over to an operating management team that will be held accountable to the community on a continual basis," the release added. "It is time that we make a commitment of 'full disclosure' to the actual owners of the hospital -- the citizens."
Kessler emerged from bankruptcy in December. Since then, hospital officials have tried unsuccessfully to secure a partnership with another medical facility.
Still, the hospital's new parent organization -- The Foundation of William B. Kessler Hospital -- secured the $1.6 million in donations it needed to keep the facility open.
The funding requests are part of a four-point plan the news release called "Refinance, Restructure, Reconnect and Renovate" that is deemed essential to turn the hospital around.
The restructuring already has started with the installation of new Chief Executive Officer Jim Rossi and a new board of directors.
"The necessary management changes are under way and new processes are being built and put in place," the release said. "Staff training, orientation and goals will be put in place to assure that everyone's responsibilities are held to high standards with the accountability that is needed to strengthen patient care."
Additional Facts
HOW TO HELP
Donations made payable to The Foundation of Kessler Memorial Hospital may be sent to Car-mella Galletta Schenk, c/o The Foundation of Kessler Memorial Hospital, P.O. Box 437, Hammon-ton, NJ 08037. For more information, call (609) 561-6700, ext. 5475.
Last year, Kessler asked for money to get out of bankruptcy. Now, they are asking for money to stay open. Will they be asking for money year after year to support a failed business plan?
Maybe it is time to let the market do its job. I am sure that one of the major hospitals will open an emergency room in Hammonton.
-- Edited by Voice of the People at 08:18, 2008-11-20
It doesn't help Kessler when they have employees who ridicule residents for not attending their FREE clinics. There should be POSTIVE Public Relations not politically staged town hall chats which actually hurt Kesser once things got politicized. It amazes me that Kessler leadership couldn't come to terms with all the hospitals who came in to consider taking over the hospital. I support Kessler but I guess Kessler is asking more than what the regular taxpayer can give.
The above post is wrong. the state of NJ will not allow any new ER's or Hospitals. If the doors close that's it. The only thing we will have is the urgent care center. The people with no insurance that urgent care drops off at the hospital will be screwed. As always it's the poor that get screwed. Kessler has a new CEO who is also a doctor. Let's give him a chance, Hammonton needs a hospital. But i agree with everyone big big changes are needed.
The above post is wrong. the state of NJ will not allow any new ER's or Hospitals. If the doors close that's it. The only thing we will have is the urgent care center. The people with no insurance that urgent care drops off at the hospital will be screwed. As always it's the poor that get screwed. Kessler has a new CEO who is also a doctor. Let's give him a chance, Hammonton needs a hospital. But i agree with everyone big big changes are needed.
That's a twist of facts. I didn't say anything about a new hospital in town. I'm saying Big Changes are Needed not just in Kessler but the whole healthcare and insurance industry. Did you not read the negative editorials from 2 hospital staff members the last month or two. I'm all for giving the new CEO a chance. I want the hospital to stay but negative editorials from staff don't help Kessler at all. Kessler for years said that they would open up a new ER long before it's budget woes. Many donated towards as has been mentioned at a mayor's chat. Donations have come and are still coming in. The new CEO can't be concerned with doing the PR. There's people being paid to do that.
Everyone understands that we want the hospital to stay open. Everyone also understands that the hospital can never stay open in its current condition. I wish everyone would just admit the obvious. The hospital must affiliate with a larger more respected institution. Currently, the people in Hammonton for the most part only use the hospital as a glorified emergency room. They do not use the hospital for their general surgeries only emergent ones. People go to the emergency room and get patched up and then travel to philadelphia to get their surgery. (Hammonton ER get $400.00 ER visit, Philly Hospital gets $20,000.00 surgery). We should be trying to entice a bigger more respected hospital to take Kessler over even if it means giving all control to them. A hospital where people will elect to get their surgeries and care. Raising more money will just delay this inevitability. The faster this happens, the faster Hammontonians will get a better hospital and much better care.
About 2 years ago when things started to get bad, Atlanticare wanted to come in. Some local couple wrote a letter to the Hammonton News saying they did not want "these outsiders" here. With an attitude like that, Kessler is doomed.
