HAMMONTON BLOG

Single hospital seeks partner: Kessler can't go at it alone

By ERIC SCOTT CAMPBELL Staff Writer, 609-272-7227
(Published: Tuesday, January 06, 2009 )

HAMMONTON - William B. Kessler Memorial Hospital will remain open past its fundraising deadline of Jan. 16 as its administration tries to negotiate a partnership with another health care provider, the Atlantic County hospital announced Monday.

Kessler has abandoned its community loan drive and is paying the money back, interim Chief Executive Officer Jim Rossi said. Obtaining
$5 million from private lenders would have guaranteed an additional $7 million in bank financing for the hospital's revitalization effort, but less than
$2 million was pledged.

"It's just too small of a town, and the economy's too crappy," Rossi said.

More than 450 employees were told Monday the hospital's future "is still very uncertain." Rossi declined to establish a new deadline for Kessler's survival. "We're trying to come up with all the options within the next week or 10 days," he said.

Rossi said the hospital has held talks or is scheduled to hold talks with several southern New Jersey hospitals, "more than two" of whom have actively showed interest in some form of relationship. Rossi said he did not want to use the word "merger," but he confirmed that some of the conversations have been about combining operations.

AtlantiCare Regional Medical Center is one of the candidates, hospital spokeswoman Jennifer Tornetta said. "Kessler's board approached us, and we are talking with them about solutions for Hammonton's immediate and future health care needs," she said.

Bridgeton-based South Jersey Healthcare's administration declined to comment on whether it has had recent discussions with Kessler, spokesman Greg Potter said.

Kessler chose in August 2006 to negotiate an affiliation with South Jersey Healthcare, having also considered AtlantiCare and Camden-based Lourdes Health System. But the Bridgeton organization ended the talks within three weeks of that announcement.

Officials from Shore Memorial Hospital in Somers Point and Cooper University Hospital in Camden said they have had no recent talks with Kessler, and a spokeswoman for Virtua West Jersey Hospital in Berlin declined comment.

New Jersey's government would have to clear any partnership, Rossi said. State agencies in December left the hospital out of a $44 million grant pool and rejected a request to let Kessler's doctors join the loan effort with a $1.5 million contribution.

Rossi said in mid-November the hospital would need to close if it did not get $5 million in loans in the next two months.

"We have made improvements to the organization and we're losing less money," Rossi said when asked why he felt comfortable calling off the deadline for funding. Since replacing its billing contractor, he added, "we're doing better on the billing and collections."

There have been more patients, too: about 59 on Monday, after a year in which the hospital averaged 45 per day.

Kessler has missed recent payments on employees' health insurance, Rossi said. Workers are still covered, but that could change in as soon as 30 days.

The hospital has survived day to day before.

In September 2007, it abruptly sold its halves of a hospice and home health care agency to co-owner AtlantiCare for $2.75 million, needing to pay health insurance and payroll taxes. Three months later, the hospital emerged from bankruptcy, having gotten $1.5 million in donations from the community.

Kessler's assessed property value is about $14.5 million.

To e-mail Eric Scott Campbell:

ECampbell@pressofac.com

The governor needs to be reminded there is another 1/2 of New Jersey; South Jersey.     As usual we are the forgotten people down here.  As far as Kessler goes the administration needs to learn their lesson and not let a small handful ruin them.  Kessler could have mergered years ago but no one wanted to deal with the board.   So what if the name changes so long as we have a hospital.

Anonymous wrote:

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Does it really matter who operates or runs the hospital as long as we have a hospital in Hammonton? Hammonton is a great location for one of the hospital groups to have a location.

Jon Corzine should re-visit his hospital funding formula and and spread the $44 million dollars around the state. Kessler has significant charity care that should be reimbursed by the state of NJ. State mandates care but pulls the funding? The steady constant strain of taking from the smaller communities and funneling money to the welfare aided urban areas must stop.

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As long as we have a hospital in Hammonton, it doesn't matter what name is on the door.  But Corzine and the Democrats don't want to help and rather just want to critize the hospital. 

I looked up critize in the dictionary but it wasn't there. I can only assume you meant criticize.
I hope you are not inferring that this hospital does not deserve criticism!!!! The public, the government, the employees have every right to criticize this hospital. There have been many problems that have directly led us to where we are today.
Having said that, you need to put away your bigoted attitude and try to work on positive solutions to the problem. To make statements like yours about Democrats does nothing but fuel more division between the parties and hinders positive motion towards a solution. It's not that Corzine doesn't want to help, the statement was made that the money was denied because their was no plan for the future presented to the State in the request for funds. Do you really endorse throwing taxpayers money at a project that has not even taken the time to present a "plan" to right the ship?
We all need to help work in a positive manner to fix this situation. I have written to Gov. Corzine, Sen. Whelan, Sen. Lautenberg, the County Freeholders, have you? I have asked them to look into the problem and given my opinion that there needs to be a drastic change in this hospitals management, focus, services, etc. to survive for the future, have you? I have written to Atlantic County Democratic leaders to see if their are any other avenues available for us to pursue, have you?
Stop pointing fingers and start putting that energy into positive work that will benefit this community.

Why would Jim Rossi make an excuse for Jon Corzine not to come up with the $2.1 million dollars slated for Kessler Hospital? The local Hammonton residents have already donated alot of money keeping the hospital afloat.....why is ROSSI (the Kessler acting CEO) making an excuse for the state of New Jersey, AKA Jon Corzine, not to deliver $2.1 million in emergency state aid?

If $44 million can be allocated to Corzine's North Jersey Hospitals.....I would demand that the governor come up with $2.1 million for Kessler Hospital!!!!! What is the downside to pressuring the governor into allocating a small amount of money to support KESSLER HOSPITAL!!!!! Hey Jim Rossi why must we only use private Hammonton donations and/or loans to support the hospital?

If you are the acting CEO of Kessler Hospital, please find a little backbone and plead your case directly to Governor of the state of NEW JERSEY........JON CORZINE!!!!! When he gets back from IRAQ ring his phone everyday until he provides us some help!!!!!!

http://www.pressofatlanticcity.com/179/story/368394.html

This is an example of the good things that happen when the Mayor and his Comedy Team are not in charge.

Thanks you Hammonton First!!!!!!!!!!!!!!!!!!!

Anonymous wrote:

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I agree.  Trying to hold on to it was their big mistake.   At this point forget merger.  Just give the hospital to Atlanticcare so that we have a hospital or 24hour urgent care center.

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The only thing some were trying to "HOLD" were there cushy positions or titles while employees at Kessler worried about losing their jobs and not having the insurance premiums paid for.  That's why they didn't want people to ask questions.  They kept saying, "Now is not the time to ask questions." The writing was on the wall when one of the main reasons Kessler was hurting was that it was at  less than 40% capacity regardless of whether it was Charity care or not.  EVERYONE KNOWS that for serious health issues you have to Philly or New York.  A small hospital NEEDS affiliation with some sort of Cancer or Cardiac Center to have a chance the last 10 years in the current healthcare system.