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Show The Salt LakeTribune BUSINESS Thehallmarks ofits acquisition approachincludea well-prepared Columbia Makes and persistent takeover team, speed and flexibility in making the deal, ready access to large sums of moneyand a reputation for not overvaluing its targets. Huge Impact On Health Care Its financial success has hinged @ Continued from E-1 HARVEY MACKAY Score Big ‘With Good ‘Networking I've got a newbook out, Dig Your Well Before You're Thirsty, and before I'm accused of touting it, which I am, I want to tell what’s notinit. The bookis about howtocreate and nurturea lifetime network of contacts. Soit’s full of networkingstories. One of my best networking stories isn’t in the book, because it just happened. Last year, the basketball pro- gram at mycollege alma mater, the University of Minnesota, was in the tank at mid-season. Hopes had been high. We were supposed to compete for the Big Ten championship. To ev- eryone’s disappointment, we didn’t even get invited to the NCAA Tournament. The professionalpundits, the letters-tothe-editor writers and callers to talk shows were all over the coach, Clem Haskins. “Doesn't know howto motivate teach the fundamentals.” “Unable to get themto play togethef as a team.” Boo.Hiss. I knew Clem casually, and I could imagine the torment he was going through and wanted to let him know my feelings, too, so I wrote him letter. on aggressive efforts to eliminate excess capacity and duplicated services, along with volume purchasing discounts, exclusive supplier partnerships and refinancing long-term debt at lowerrates. cialist in Dallas when he founded Columbia. The only businesses he owned previously were two doughnut shops. But there’s a big difference be- Scott, labeled “Darth Vader” by some and “visionary” by others, quietly declares himself a “change agent,” doing the dirty work for hospital managers who tween selling doughnuts and pro- viding heart bypasses, liver transplants and gallbladder removals. Critics charge that Scott and his entourage can’t fathom the distinction, haven't had the stomach to make the hard decisions. “We have a system that’s sort of messed up,”’ Scott said. But “today there is more accountability Seott angered communities in 1993 when hesaid he would continue buying hospitals, some just in health care than everbefore.” Scott appears unfazed by speed bumpsrecently thrown in Columbia’s path. Authorities aren’t saying why to close them down. He particularly riled traditionalists when, after consuming muchof the nation’s for-profit operations, Columbia turned to nonprofits. “Columbia has gone into com- munities, taken over their resources and literally strip-mined Court calls Columbia a ‘‘corporate Pac-Man” that puts more faith in bean counters in the ac- and nurses. The patients suffer, to use the courts to stop an acquisition. A circuit judge ruled last he says, frequently losing access to services and receiving poorerquality care. “Columbia thrives on reducing September that assets of a nonprofit hospital, legally formed for charitable purposes, cannot be transferred to a for-profit joint venture. Columbia has appealed the de- resources. But we know that’s the recipe for medical malpractice,” Courtsaid. First and foremost, Columbia cision, but has retreated for now operates like a business, calling patients consumers and health- care provider, with 343 hospitals thattreat 125,000 peoplea day. Cam. from acquisition activity in Michi- i Ariz NM Alaska ae To Keep Workers Wind: Vright Brands Food Inc., ae Kentucky \12 |41 | {4 | Oklahoma [9 [34] Arizona 5 Louisiana 20 |38 | }o}1 Arkansas Califomia 4 15 Massachusetts |1 Minnesota 0 Colorado Florida Georgia Idaho tlinois Indiana lowa [9 9 |10| [5479] |20|47 2.|3 | | 8143 Kansas Mississippi Missoun |2 | [2 | Oregon cessing plant in Vernon, T battling Texas-style to retain the Penns Nevada 217} NewHampshire |3 |3 | NewMexico company’s 540 workers. Utah Virginia [2S | Washingion a morale-building barbecue. ‘With unemployment down to 4 percent [locaily), it's been really tough,” Noah saidof theti | 30 52] |71 |141] bor market, | 7 | 19} \15 | 14 centrate on keeping the employ It ney general to determine if a sale is in the public interest. “We know that Columbia/HCA is sniffing around several hospitals,” said Rep. Eileen Cody, who sponsored the proposal. But in West Virginia, Columbia hasits fans. St. Francis Hospital was two weeks from bankruptcyin 1993 when Columbia bought the Charleston facility for $56 mil- lion, saving 600 jobs in the community, said Sister Joan Kreyenbuhl, vice president of mission and ethics for St. Joseph's Hospital, another Catholic facility in nearby Parkersburg that, later joined Columbia. Still, health-care purists struggle to accept co-mingling of nonprofits and for-profits. They argue that communities, churches care services an industry. Its corporate mission statement men- gan, said state Atty. Gen. Frank Kelley. tions “quality health care” in the samebreathas ‘‘cost-effective.”” In Washington's state legisla- and universities, and not thefree- ture, lawmakers haveintroduced marketsystem, created these hos- Noah voices a concern similar to others expressed at the Ameri- _pitals. “Community hospitals are pub- lie resources; Columbia share holders are private investors, said Court, of the California consumers group. ‘Private investors shouldn't be able to dictate to whole communities what their standard ofcareis.”” Columbia counters that forprofits give back to the community by paying taxes, while nonprofits are tax-exempt. At the same time, critics say for-profits don’t embrace the costs of medical care for the poor and the teaching and research missionsof university hospitals For consumers, the debate is part of the health-care revolution. And confusion and anxiety reign. “People understand that in mergers and consolidations, someone wins and someoneloses. They just want to make sure that they are the winners,” said Wade of the American Hospital Association can Management Association's (AMA) conference in Dallas which brought about 1,500 hnman-resources executives here from throughout the country te discuss their biggest challenges They are noting a startling change fromthe recent days of downsizing: Instead of having to shed excess workers, many are finding themselves with too few employees In an informal survey condveted by the AMAof about 400 of its participants nearly half said skilled manpower is inshort suf’ ply. Theseexecutivesalso see great er shortages looming in the fv ture: Two-thirds of mining, maiitt facturing, construction, and business and professional services firms surveyed predict the problem will worsen within the next three years. And many cor panies, particularly manufactur: ing firms, are having trouble finding workers to fill specialized high-technology positions, 4¢ cording to the survey. But the AMA statistics mask a wide variation in labor markets February 12, 1996 Dear Clem: I want youto knowthat I continue to support the excellent job youare doing at the Univer- Ohno eyes sity of Minnesota. I'm disappointed at the almosttotallack ofvision exhibited by the public and especially the sports media. It should be easy for followers of Gopher basketball to recall how “shaky” the class of Willie Bur- ton and Melvin Newburn were ~ Home Equity Line as freshmen and sophomores and then howgreattheir devel- and you'll be rockin’. opment was as junior and se- niors. Specifically, I predict the Gopherswill be nationally ranked anda Big10 title contender the next two years, and I won't be surprised if Saturday’s victory at Northwestern is the begin- ning of a substantial improvementthis year. As always, I extend my best wishes for your success. Sincerely, Harvey Mackay This year, 1997, the Minnesota basketball team won the Big Tentitle, made it to the NCAA Final Fourfor thefirst time in ithe school’s history, and The 'Associated Press named Clem “Haskins Coach of the Year < Do I know anything about Opening a home equity line from First Security Bank makes sense for a lot of reasons. Nofees to open ‘basketball you don't know? Hell, no. But I do know something ,about people + Clem Haskins got a gazillion ‘slaps on the back this year when Lines up to 100% of home’s value this team rose from the bowels of the earth How many letters like mine ‘did he get last year? Not too ‘many, from what I sensed when I saw him in San Antonio last month. As I was walking through the lobby of the hotel where the team was staying, there was Clem, surrounded by what looked like a thousand wellwishers. “Harvey,” he called, shaking loose. “How are you doing? We madeit. I really want to thank you for believing in me.” I mumbled a few words. I had to turn away because something must have gotten in myeye and I didn’t wanthim to seeit Networking doesn't have to payoff in a new job or frontrow seats to make a difference in someone's life. The bandwag. Fast answers through LendLine Great Free Stuff Ett To apply, simply stop by any branch or call LendLine at 1-800-Lend FSB. (1-800-536-3372) on gets pretty crowded when people realize it's heading to- ward glory, So crowdedthat the driver seldom notices who climbs aboard Don't wait. The time to make your presencefelt is when it's just a plain old wagon and no Onewants to ride onit Mackay's Moral: People al ways remember two things: who kicked ‘em when they were down. And who helped ‘emup Get a new First Security Home Equity Line, THEN CHOOSE ONE OF THE FOLLOWING. 20” JVC Color TV Hitachi 13” TV/VCR Combo JVC VCR AIWAPortable Stereo Nationally syndicated busi ness columnist Harvey Mackay is the author of “Swim With the Sharks Without Being Eat en Alive’ and “Beware the Na ked Man Who Offers You His Shirt Apple ations murst be recewed by May 10 1997 rum ony svadatte to hownehotd. without on exmting fwet Security heme equity bne Mas ard ww ur awe requned Rate 6 based on the Wall Street Journal (WSJ) veruabte prune ‘ate pis 1.29% for inane up to 80% loan to vaho (LTV), hus 1.75% for toane from 61-00% LTV (man $50,000) phes 5.0% for tnans trom #1-100% LTV (mas 535 000) depending on home» wahee As of Fetrwary 1, 1097. the WS) prime rete was 6.25 APR The APH i variable but the manirmam rate Canal exceed 19% APR repardinns of the prime ‘ate 560 anual few waived the fires year ls Utah and Oregon there ss 52%) warty termanatio foe H the bine i choad within 24 ret: > } 71 ees we have.” 1 | AP also would requirethestate attor- which is making difficult for some companies té retain and find workers. “Wecor |8 |9 | West Virginia 7 | 5 | 3]4| wyoming [1] 1] ‘Source: Columbia/HCA a bill to ensure that public hear- This summer he plans what hehopes i {2/5 Rhode Is |o}2 South Carolina | 5 3 | 213 Tennessee {3 |5| Texas 2 |4} NorthCarolina 02] Ohio hu a fem ily-owned bacon- and ham-pr ; ae [Hospitals | Other facilities 1 Alaska Noah, man-resources manager at Miss. Alabama THE WASHINGTONPOST DALLAS — Billy Okla. Ark Texas La Columbia/HCA's holdings hospitals to for-profit firms. Beginning in 1996, community groups andstate attorneys general in Michigan, California, Ohio and other states began to stand up to the expanding Columbia. Michigan becamethefirst state counting office than its doctors country's largest heaith- Paso offices March 19, carting off truckloadsof patient records and er investmentdeals for doctors. der. Columbia/HCA Healthcare Corp. has growninto the Companies Struggle - tdabo fe x U'EM Colo ings precede sales of nonprofit Times, after a yearlong investigation, reportedpossible targets are Medicareoverbilling and improp- E3 Columbia/HCA“ FBIagents raided Columbia's El other documents. The New York those hospitals,’’ said Jamie Court, with Consumers for Quality Care, a Los Angeles-based group associated with Ralph Na- Sunday,April 27, 1997 |