THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, May 3, 1996 TAG: 9605010116
SECTION: PORTSMOUTH CURRENTS PAGE: 03 EDITION: FINAL
SOURCE: BY IDA KAY JORDAN, STAFF WRITER
LENGTH: Medium: 75 lines
Portsmouth lost a hospital Tuesday when Tidewater Health Care of Virginia Beach announced the sale of Portsmouth General to the Bon Secours Maryview Health System.
But the city still has the $12 million Portsmouth General Hospital Foundation, a tax-exempt entity created with $10 million from the $35 million deal Tidewater Health Care made with the old Portsmouth General board. The foundation provides funding for a variety of community projects.
Maryview first tried to buy the hospital in 1987 but lost out to Tidewater, owners of Virginia Beach General. The two companies were among half a dozen others, including Sentara Norfolk General, that wanted to buy the 100-year-old community hospital.
Although the two companies agreed not to reveal the sales price in this week's deal, Tidewater Health President Douglas L. Johnson said his company ``showed a book loss but came out a little ahead in cash'' on the sale.
Maryview's acting chief executive, H. Wayne Jones, said all inpatient care will be transferred to Maryview Hospital within 18 months. But Maryview will honor Tidewater Health Care's commitment to keep the hospital Downtown until the year 2000 by continuing to operate the emergency room, some outpatient care and a rehabilitation center at the site for at least four years.
Jones said Maryview will reopen about 50 of its medical-surgery beds that have not been used recently.
``We may have to convert some other space to inpatient rooms,'' he said. ``We just don't know all the specifics at this time.''
A lot of other specifics were unanswered at a news conference Tuesday afternoon. Johnson and Jones talked with city officials Tuesday morning to tell them of the agreement.
Maryview, Jones said, will work with the city on the ``best future use'' of the Portsmouth General buildings.
For at least the next 18 months, the Portsmouth General Hospital Auxiliary will operate as usual and the Foundation will keep its offices in the building.
Four of the top administrators at Portsmouth General will stay with Tidewater Health Care, transferring to Virginia Beach General.
``Maryview will put a senior leadership team in place at Portsmouth General as soon as we complete the arrangements,'' Jones said.
The two hospitals estimated the transfer of ownership would take up to 60 days.
Johnson said medical care has changed so drastically over the past eight years since his company bought Portsmouth General that the hospital was losing money. He cited reductions in federal insurance payments, the growth in managed-care plans and new technology as part of the problem for both hospitals, which together showed a 26 percent decrease in inpatient care last year.
``I really believe at this point this merger will enhance the quality of care in Portsmouth,'' Johnson said. ``Maryview will have enough patients to make everything better.''
Jones said the merger would make for ``more effective and efficient use of limited health care resources.''
Both Tidewater Health Care and Maryview promised Tuesday to give preferential consideration to Portsmouth General employees who might be in positions that will be eliminated by the merger. A special fund into which each company will put $200,000 has been created to help in retraining employees.
In addition to the hospital fronting on Crawford Parkway, Maryview also acquired all of Tidewater's other land holdings here, which include Portsmouth General Therapy Center, Urgency Care Center, HomeLife Home Health, Western Branch Family Practice and Olde Towne Family Practice. Poplar Hill Diagnostic Center, which has been jointly owned by the two companies, also will be transferred to Bon Secours Maryview. by CNB