How involved should the Town of Hammonton be in Kessler's problems?
Article published Jul 12, 2006 Town, Kessler officials discuss finances
By BEN MERITT Staff Writer bmeritt@thehammontonnews.com
HAMMONTON -- Town officials were meeting Tuesday with Kessler Hospital administrators in an attempt to help resolve the local medical facility's financial difficulties.
Mayor John DiDonato last week offered the hospital the services of the town's Fiscal Oversight Committee. Hospital officials welcomed the offer.
The hospital's financial situation has become a concern, DiDonato said, since news of the hospital missing health insurance payments for 200 union employees and the pending cancellation of that insurance on July 26.
"We are doing everything we can to save the hospital, but time is not on our side," DiDonato said. "And we need everyone's prayers."
DiDonato along with FOC chairman William Crescenzo, were meeting Tuesday with hospital officials and Commerce Bank representatives to work out a financing arrangement to give the hospital, which has 600 employees, the resources to take care of its outstanding debts.
"We hope this meeting can set that groundwork in place," DiDonato said prior to the 3 p.m. meeting at the hospital.
Meanwhile, AtlantiCare, a regional healthcare organization based in nearby Egg Harbor Township, issued a statement late Tuesday afternoon.
"We have reached out to the leadership team at Kessler Memorial Hospital to arrange a meeting to see if there are any opportunities to work together," said AtlantiCare Chief Executive Officer George Lynn.
In a statement issued Monday, Michael Gonnella, Kessler's chief executive officer, welcomed the town's assistance.
"We are enamored to the town and its leaders and we are open to all suggestions and ideas," Gonnella said.
Unless a new agreement is worked out between the hospital and representatives of Union 1199c, the employees' health benefit coverage will cease on July 26.
In that regard, Kessler spokesman Mark Miranda said Monday that talks between the two parties are still ongoing.
Information provided to the media by a Kessler employee recently said the hospital, despite not making the required health payments, still made those deductions from recent paychecks.
"It should have gone directly to the union," Miranda said, adding that the hospital is investigating the matter.
DiDonato said he is hoping the FOC, which crafted the town's budget earlier this year, will be able to help the hospital right its financial ship.
"We met with the hospital last week to discuss their situation. We worked through the weekend to develop some funding possibilities," DiDonato said.
One possible source could be from the U.S. Department of Rural Development, the mayor said, with the town checking to see if any monies from that agency can be used somehow in the matter.
The federal department administers several programs that work in partnership with the private sector and community-based organizations to provide financial assistance and business planning. According to the USDA Web site, the financial resources of its business program are often leveraged with those of other public and private credit source lenders to meet business and credit needs.
Miranda last week disputed claims that the hospital, which opened in 1964, was going bankrupt. Earlier this year, Kessler officials stated the hospital was, in fact, expected to turn a slight profit in 2005 after losing nearly $10 million the previous two years.
When asked about Kessler financial straits, DiDonato said, "They have some serious money matters."
I'm for helping Kessler out but I don't think the FOC did any good when they were giving their input regarding the school budget. I think the school is still headed for trouble and town council made it worse with their lease/purchase deal. I hope after Kessler their not 0 for 2. Our town can't afford for it's leaders to make mistakes.
