HAMMONTON BLOG

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New hospital name, management discussed at community meeting
New hospital name, management discussed at community meeting
(Published: Tuesday, December 02, 2008)

HAMMONTON - If William B. Kessler Memorial Hospital gets the funds it needs to continue operating into 2009, all actions of the board of directors and managers will be out in the open, and managers will be held accountable to the community, officials assured about 70 people who came Monday night to Town Hall for a meeting on the hospital's future.

It also will have a new name, interim CEO Jim Rossi said.

"The Kessler name has to go," and the new board of directors will seek community suggestions for a new one, Rossi said.

The hospital emerged from bankruptcy protection in November 2007 and was taken over by a nonprofit foundation. But financial problems persisted, and managers said the hospital must raise $5 million by mid-January to keep Kessler open.

Most of the money would come from loans of $25,000 or more from accredited investors - people who make at least $200,000 per year or have a net worth of $1 million - as required by federal law.

Donations, from $1 on up, are gratefully accepted, but even the most successful fundraising effort couldn't come up with the cash the hospital needs to stay afloat, Rossi said Monday night.

Hospital officials have said that if they don't raise the money, they will close down rather than limp along for a few more months or go back to bankruptcy court.

People saw Monday night just how important Kessler Hospital is to the Hammonton area.

Businessman Rusty Lucca took to the podium and asked the audience how many of them had been to the Kessler emergency room. About half of those present raised their hands. How many had a life saved? About a dozen hands went up.

Kessler also brings in about $20 million in revenue every year that is spent in the Hammonton area, Lucca said.

"The great thing about Kessler is if we save it, it one day may return the favor and save us," he said.

Hospital staff save the lives of three to five patients every month, Rossi said - if people had to travel 20 minutes to another hospital, some of those lives would be lost and survivors would be in worse shape.

If Kessler closes, it would affect the local economy, Rossi said. Businesses, such as restaurants, that cater to employees would close. Police and the ambulance squad would have to travel farther to conduct their business, and taxes would go up as a result.

"When you call 911, there might not be an ambulance available, because they're all out of town," Rossi said.

Dr. Jack Kanoff, president of the medical staff, agreed with the assessment.

As a lung specialist, he knows that if someone stops breathing, "my patient dies before he gets 25 minutes to the next hospital," Kanoff said.

Unlike big-city medical centers, the doctors at Kessler have become friendly with many of their patients, often serving several generations of the same family.

A group of physicians at Kessler has agreed to loan the hospital $1.5 million to keep it going, Kanoff said. But it needs approval from the New Jersey Board of Medical Examiners because a new state law prevents doctors from having a financial interest in the hospitals where they work. He believes that waiver will come through because the doctors won't have an ownership stake in the hospital.

If that permission comes through, it leaves $3.5 million that must be raised in the community, Rossi said.

Rossi outlined a five-pronged plan to bring the hospital back to solvency:

n Refinance the hospital. All funds lent to the foundation would be placed in escrow, and returned to the investors if plans don't go forward.

n Hire a new management team, including a vice president for medical affairs, a position that has been vacant for several years. The managers would be accountable to the public because of problems in past administrations.

n Bring on an entirely new board of directors, chosen by the lenders. All activities of the board and managers would be open.

n Increase revenue. The hospital stands to gain $2.2 million per year by its recent hiring of a new billing company. It also needs to bring in more doctors and patients and expand programs such as radiology and bariatric surgery.

n Restructure the reputation of the hospital. This includes a name change and improvements to the facility.

In a public question-and-comment session, resident Dave Rizotte suggested "Hammonton Community Hospital" as the new name.

Rizotte said he first learned about the need for a community hospital when he was 17 and drove a car out of the Burger Chef into the path of a Cadillac going 70 mph. A friend needed emergency services several years ago when he got shot in a hunting accident and his brother needed the emergency room when he had an allergic reaction to a bee sting, he said.

After the meeting, Rossi said he is cautiously optimistic that the hospital will survive.

"It's a lot of money in a very rough economic time," he said.

Details of the financial plan are on the hospital's Web site at

www.kmh.org.

E-mail Elaine Rose:

ERose@pressofac.com

What are your thoughts about the hospital and should the town be involved in the bailout?
Vineland city just backed a loan to keep Boscov's open, should we do something to back our hospital?

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Thanks for posting this Jim.   It takes more than just having a lawn sign to save the hospital.  It takes people who are willing to ask questions, require accountability, and plain and simply just go to the the hospital for services.