Local group still in the race

A group of local physicians is back in the running to buy the Pardee Care Center.

Pardee Hospital is weighing an offer from Hendersonville Physicians and Associates for the 130-bed nursing and rehabilitation center on the campus of Blue Ridge Community College.

The news came less than one week after it looked like the physicians' group may no longer be in the running.

A committee recommended last week Pardee enter into negotiations with UHS Pruitt, a Georgia-based corporation that runs 66 health care centers in the South, including Ivy Hill Health and Retirement in Brevard.

The Pardee Hospital board of directors met behind closed doors Monday. When they emerged, hospital leaders decided to consider both UHS Pruitt and Hendersonville Physicians and Associates, a group of nearly one dozen investors and doctors that include Dr. Larry J. Russell, Dr. Amal Das, Dr. Steven Lackey, Dr. Gail Clary and Dr. Lateef Abumoussa.

The group would lease the care center to Ardent Health and Rehabilitation, which runs Beystone in Fletcher.

Back in the running

The hospital's chief executive officer would not divulge the reason the board brought the physicians' group back into the competition.

The two groups offered the most money out of 14 bidders after the care center was placed on the market for struggling financially.

UHS Pruitt offered $8 million and committed to $750,000 in renovations and upgrades at the center. Hendersonville Physicians and Associates offered $8.45 million.

Pardee leaders took into account how the buyer would continue the center's quality care, protect the employment of care center associates and work with community agencies, such as Hospice.

Ohio-based Laurel Health Care Co. and Lutheran Services for the Aging out of Salisbury also made presentations to Pardee's executive committee last week.

"As we came forward, there was some information that all of them didn't have available," Pardee CEO Kris Hoce said. "We got some of that information on Wednesday and Thursday. Given that information, I made the recommendation that we pursue further due diligence and discussions with not just UHS Pruitt but with the Hendersonville Physicians and Associates group."

"There were enough issues raised that we felt like additional due diligence was prudent and necessary for us to fulfill our fiduciary responsibilities, and as such also felt it was prudent for us to add the second-ranked bidder," Hoce said.

Hoce would only say the information was related to the three criteria -- quality care, employees and partnerships with community agencies.

Public concern

Public information about patient care concerned Mike Earle, a local insurance agent who attended the Pardee board meeting Monday.

Three finalists run local facilities whose performance is tracked by the U.S. Department of Health and Human Services. Records show the Laurels of Hendersonville, run by Laurel Health Care, had three health deficiencies between Sept. 2006 and Nov. 2007. UHS Pruitt's Ivy Hill in Brevard had 19 health deficiencies in that time. Ardent's Beystone facility had two health deficiencies.

"The board is recommending that their first priority was to find a facility that put patient care as a top priority," Earle said.

Earle said he thinks the care center should be sold to Hendersonville Physicians and Associates, whose business partner is Ardent. Earle's father stayed in Ardent's Beystone facility.

Delay

Lutheran Services President Ted Goins Jr. urged Hoce by letter Saturday to delay the executive committee's recommendation to the full board for 30 days.

"The thirty days would allow Pardee Hospital to hold a public hearing to hear from citizens who donated to build Pardee Care Center and from the community on their desire regarding the future of Pardee Care Center," Goins wrote. The delay would also allow Lutheran Services to strengthen and share more information on its proposal, he said.

Lutheran Services offered $7.1 million for the care center. It runs five nursing homes, two retirement centers and an adult daycare operation in North Carolina.

"We're never going to be the people that pay the most for a facility, because if you put all your money into the building, there's no extra money to take better care of the residents," Goins said last week. "We would rather come in at a reasonable debt and then be able to continue to provide the kind of care that Pardee provides now."

Hoce said because Pardee is county-owned, an upset bid process would take place. Lutheran could make another bid at that time.