Weekly Update: Another look at Novant... a Challenge to CEO Mike Schwartz... frontline reporting...

TIME TO STAND UP AND ASK QUESTIONS: NOVANT IN THE NEWS

Now more than ever, the citizens of Prince William county and PWHS employees need to take an active interest and look at the big picture of what it means to allow this outside company from North Carolina to "partner with" (BUY), "invest in" (BUY) or "merge with" (BUY AND TAKE OVER) our community hospital and health system.

PWHS' intended "partner" Novant is in the news for being named the 5th largest medical group in the United States:

http://www.bizjournals.com/triad/stories/2009/04/06/daily26.html

Novant, a "non-profit", owns 27% of 7 for-profit Healthcare Management Associates (HMA) hospitals:

http://www.fiercehealthfinance.com/story/hma-sells-seven-hospital-stake-to-novant/2008-04-02

http://www.wikinvest.com/stock/Health_Management_Associates_(HMA)

Based on all of this we believe the following to be true:

Novant is a healthcare juggernaut! It is becoming increasingly clear that the picture being painted for PWHS employees of a humble non-profit from the south coming to help us out is NOT what is really going on. This is more than that. This is more than old Duke University alumni CEO cronies forming an alliance to make themselves richer. This is corporate healthcare trying desperately to expand into Northern Virginia to compete with INOVA, Medicorp, Potomac and - ESPECIALLY - Fauquier to our west.

This is REALLY all about expanding PWHS' Heathcote Health Center and building a new hospital in Haymarket. They would NOT be doing this if there was not money to be made... Money PWHS could make on its own with the right leadership.

Keep in mind:

Novant will expect a return on their 200 million dollar investment and would NOT be risking this amount of money if they weren't sure they'll be able to recuperate it. All of PWHS, meaning local patients and local employees will be beholden to this out of state corporation for each cent of that two hundred million.

The fact that a local 'Board' will still be in place to provide local governance is meaningless when Novant will hold all the purse strings. Like the current Board, it will merely be a formality, a purely ceremonial position and role that does NOT provide true oversight or guidance.

Most importantly, all of our genuinely non-profit neighbors are getting by on their own, and even though Schwartz FAILED at his goal of "merging" with INOVA, the FTC found PWHS should be able to stand on its own. We believe during this process many truths were concealed, ESPECIALLY the fact that Schwartz had no plan for PWHS other than to sell it. The records of the failed, aborted INOVA / PWHS "merger" can be found in the links below.

http://www.ftc.gov/os/adjpro/d9326/080509admincomplaint.pdf

http://www.ftc.gov/os/adjpro/d9326/index.shtm

Pay attention to language such as "and integrate PWHS into..." and "acquisition"... keep this in mind as Novant "partnership" draws nearer. As we've believed and reported from the beginning, "merger" and "partnership" are euphemisms when it comes to PWHS. PWHS will be bought, PWHS will be an acquisition.

Do not forget that this is not CEO Mike Schwartz's first attempt at handing over the reins and selling PWHS.... speaking of which...

A CHALLENGE TO PWHS CEO MIKE SCHWARTZ: EXPLAIN WHY...

Why can our local non-profit neighbors do it on their own and PWHS can't?

Why can Fauquier specifically thrive and do it on their own? Potomac? Medicorp?

Why not respond to the those who believe you've done NOTHING for PWHS other than look to sell for nearly a decade and have had NO vision or alternative strategies?

Why do questions go unanswered when our readers and your employees e-mail the specific address that you have ASKED them to address their queries to?

Some more questions, while we're at it, all inspired by readers' emails and comments:

When quotes like "management attributes the overall financial deterioration of PWHS to the failed merger attempt with INOVA Health System" (http://www.reuters.com/article/pressRelease/idUS217449+25-Nov-2008+BW20081125 ) are out there in the press and your employees ask questions regarding its accuracy, why is there no response?

What is the pre-merger price tag? How much was spent during the past decade on the failed sales to Universal and INOVA?

What was the cost of the consultancy firm whose reports and reccomendations you've used as justification to sell, or "merge" and "partner" as you like to call it? Has this firm EVER told a community hospital NOT to sell?

How do you feel when you think about the 1400+ employees WITHOUT severance packages guaranteed to them?

How do you feel when you think about the fact that you'll receive a 'stay bonus' to help facilitate the "merger" while those who may be "merged" out of a job when the transition is complete will receive nothing, and possibly not even fair warning?

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We'll enjoy your deafening silence on these matters for now...or if you do decide to respond, we sincerely hope you pay for the lawyers and outside PR firm who will likely be co-writing your retort out of your own pocket...


REPORTS FROM THE FRONTLINES....

A Save PWHS reader working in the Patient Access Service department writes:

"I emailed my bosses questions about the merger but was told to wait till our next quarterly meeting. To me that just means that they did'nt have an answer for me, or maybe just not one that they could tell me without causing panics. Me and others have also wrote to the pwhnews address but no one ever writes back. If they think we can sit around and wait for some quarterly newsletter or meeting for answers then theyr'e really wrong, not when they think merger could happen as quick as fall."

This is just one of many great emails from very hardworking, very scared people.

Another employee wrote to tell us that their supervisor claims that anything they read online is really from a union that is just trying to scare people into unionizing. We're waiting for and seeking additional confirmation for this happening in other departments. Make no mistake, we are anti-union and do not think PWHS needs one. PWHS needs leadership that WANTS to LEAD and not just sell out before cutting and running. Being scapegoated as union sympathizers WILL ONLY STRENGTHEN OUR RESOLVE AND FIRE US UP, EVEN MORE.

COMING SOON: A SPECIAL HISTORICAL LOOK AT PWHS AND A REPORT ABOUT KEN SWENSON and ROBERT REGAN, SCHWARTZ'S PREDECESSORS. WE'LL BE LOOKING AT BOTH THE CIRCUMSTANCES SURROUNDING THE TRANSFER OF POWER AT PWHS AS WELL AS THE PAST NINE YEARS AND A TIMELINE OF MAJOR EVENTS UNDER SCHWARTZ'S DIRECTION...

For now, we leave you with a quote from Mr. Schwartz himself, from the November 22, 1999 Prince William Section of the Washington Post in an article titled "Health System Gets New Chief; Hospital's Spirit Drew Candidate" by staff writer Amy Joyce:

"Staying independent is not an easy task, but it's not insurmountable."