HOSPITAL MANAGER CHANGES; OREGON FIRM RUNS HOSPITAL AT CHAFFEE

CHAFFEE -- A Portland, Ore.-based firm will officially take over management of Chaffee General Hospital next week.

Hospital board President Randy Dooley said board members and hospital officials plan to meet with officials of Brim & Associates, a management firm, this weekend to sign a six-month management contract with the company.

Dooley called the contract an interim agreement. He said that after the six-month period, a permanent contract would likely be signed.

"In my opinion, this was the best possible move that was available to us," Dooley said. "I feel confident that, because of this, Chaffee General Hospital will continue to operate."

The hospital will pay Brim & Associates approximately $10,000 a month for its services, he said.

According to the contract, the hospital's current administrator, Cindy Mix, will remain in her position, but will become an employee of the management company. Other employees would continue to be employed by the hospital, he said.

Dooley said Mix will work with Brim employees, most of whom will be brought in on a temporary basis.

Mix could not be reached for comment Thursday. A hospital spokesperson said she was out of town.

Dooley said that during the next six months, Brim employees will complete an in depth study of the 42-bed hospital's needs.

He said they will look into getting bank loans, as well as federal loans and grants, to help put the hospital back on its feet financially.

The firm will also establish a long-term plan to keep the hospital solvent, he said.

"We're looking to this group for their ability to go out and find some funds for us to continue operating the hospital," he said.

Dooley said the board was forced to enter into an agreement with the company after efforts to secure funds from a Hawaiian investment company fell through.

"We had begun talking to (Brim & Associates) about three weeks ago when it became evident that our investment from the Hawaiian investment group was going to be delayed," Dooley said. "We are still under consideration for it, but we couldn't hold out."

He said because of the Persian Gulf crisis, and reports of doctors from small-town hospitals being called for duty, the investment company had become wary of investing in a hospital the size of Chaffee's.

Dooley said Brim currently manages 46 hospitals in 15 states. He said the hospitals range in size from 24- to 200-bed facilities.

Brim & Associates was the only management firm the board considered. But Dooley said, "They came highly recommended."

Dooley said after the six-month period, the management firm would very likely present a permanent contract to the hospital's board.

"There is a possibility that they will decide not to continue," he said. "There is that option, but I think it's very unlikely."

Meanwhile, the hospital board will work on finding new board members.

The hospital's annual stockholder's meeting has been set for Jan. 22.

Five positions are open on the hospital's 12-member operating board. Seven of those members are considered executive directors.