There's hope on the horizon for hospitals in Mexico and Fulton

story by Matt Pilger, editor
Posted 10/22/22

It is a question you hear almost every day if you live in Audrain County and Callaway County. Have you heard anything new about the hospitals opening in Mexico or Fulton? On March 25, 2022 Noble …

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There's hope on the horizon for hospitals in Mexico and Fulton

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It is a question you hear almost every day if you live in Audrain County and Callaway County. Have you heard anything new about the hospitals opening in Mexico or Fulton? On March 25, 2022 Noble Health, the then owners of the hospitals closed the doors at both locations stating they would restructure then re-open.

Most people already know what happened next. On April 20, 2022, less than a month later, Noble Health sold the hospitals to new owners Platinum Health for $2.00. Just last month (September) Platinum Health Systems' administrators informed Callaway staff that they would not re-open their hospital, and then later, emailed employees stating that every position at both of the closed hospitals were terminated. The future for reopening the hospitals once again looked very bleak. A deadline loomed in September for the hospitals to be reopened.

After weeks of meeting with community members and hospital staff a businessman by the name of Owen Shuler went to Jefferson City with Audrain Community hospital CEO Amy O'Brien to determine the level of support the state would give to the vision Mr. Shuler has in reforming healthcare by implementing corrective revenue cycle management with advanced technology systems integration. Introducing new administrative and compensation methodologies into healthcare operations is typically met with resistance even though cost savings significantly lessen the financial burden on families. With these two hospitals currently non-operational, new methodologies can be discussed in the hiring and onboarding process as systems and procedures are modified and modern technologies utilized to manage work flow and patient monitoring. Preventative care and health maintenance standards minimize more expensive catastrophic events. Sharing the cost savings with physicians allows primary care and specialty care providers to share in the success of a healthier population.

 

Shuler is the CEO of privately-owned Shuler Capital Corp that he started in 1986 to work out distressed real estate and for recapitalizing general partners of impaired limited partnerships. Since then, he has been active regarding, energy, aviation, defense, and transportation. In 1997, he came back to his family’s business of healthcare when he crafted a revenue cycle management optimization plan, validated by Arthur Anderson, to streamline billing, collections and administration yet focused on physician - patient engagement to enhance quality of care and patient outcomes. His family owned and operated a skilled nursing facility from 1954 to 2004 where he was exposed to the initial implementation and adoption of Medicare and Medicaid during the 1960s, as well as all the dynamics of the healthcare industry. While he will be the first to admit this is his first hospital ownership opportunity, he is comfortable with the prospect stating “the natural fit with his technologies and executive management experience makes sense” admitting quickly that the process for executing a successful turn-around is based upon the strengths of the team. While he claims to only be “junior varsity,” he relies upon the “varsity team” around him including many in the community who are working selflessly to bring back quality yet affordable healthcare to our communities.

 

Behind the scenes multiple community leaders are saying Mr. Shuler is pursuing this deal the right way and making sure all of his ducks are in a row before saying anything. One community leader who wished to remain anonymous said "He (Owen) is asking the right questions and doing his due diligence. If this was done previously the community would not be in the situation it is in now." One of the biggest challenges facing the deal is some of the legal questions around billing, predatory loans utilized by Noble Health and legal issues around indemnification assurances by Platinum including unpaid vendors and employees. Another community member wishing to remain anonymous said "Mr. Shuler's top priority is getting past employees paid, getting physicians hired to run the emergency room and getting vendors in place to run the hospitals at a high level." Currently the hospitals in Mexico and Fulton have a December 20, 2022 deadline to have their operating licenses reinstated by the Missouri Department of Health and Senior Services.

If a new owner purchases the hospitals, that deadline could be extended for up to another 90 days however this option is not expected. Will the hospitals remain closed in Mexico and Fulton? That is a question that remains to be answered, however it seems there may be a path forward.


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