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‘Emergency funds’ for optimism

January 14, 2014

Saturday’s rally to save Lake Shore Health Care Center was more than a community gathering, it also brought good news. State Sen....

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(8)

lakeshoresupporter

Jan-17-14 10:18 AM

Mismanagement? Yes, by the people LERHSNY (Hamot) put in place to close Lake Shore. They can deny it all they want, but Hamot is responsible for this. Look at their record. They closed a hospital in PA. The CEO of that hospital is now the person "looking for a buyer" for Lake Shore. It wouldn't surprise me if Jonathan Lawrence was given another high paying position in one of their corporations too. Back to the money, that 9 million includes hospital equipment billed to Lake Shore and delivered to Brooks. What else does it include? A lot of highly paid upper level management salaries that did absolutely nothing for Lake Shore but run us in the ground!!!!

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jo1952

Jan-14-14 2:48 PM

Why does the observer board want to save LSH but close CCH? Perhaps their intense hate for public employees.

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Dcronlg

Jan-14-14 2:16 PM

Besides Capt, LHS has had operating issues for a number of years, some consecutive, and CAPEX wouldn't account for that -- operations would.

They have simply been burning through cash to keep the doors open and the lights on. They are obviously a bigger operation that the market can support -- so significant, corrective longterm downsizing is on the horizon -- assuming any buyer sees viability potential...

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Dcronlg

Jan-14-14 2:11 PM

Perhaps, Capt, perhaps -- the truth is that no one save the Board, the judge and upper mgmt know the situation.

That being said, what we do know is that EOY 2012, they had an operating loss of $9M -- we should also assume that during the year, they had forecasted inflows/outflows at least quarterly (if not monthly) and did some pro forma analyses as well. Given this info, they shld have taken steps, some draconian, to cut expenses and aggressively pursue receivables. In short, they had no option but to take solid steps throughout last year and at the end, they still had a $9M gap.

So, this is where BOY 2013 begins. Hence, my cash run rate of $750K/month or $1M/40 days.

This also means that whoever buys the place will have zero choice but to severely curtail operations to make the whole enterprise viable -- a big OUCH for the community.

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Captain

Jan-14-14 1:56 PM

Dcron: If everything remained constant, then yes, the $9M loss for '13 equates to approx $1M for every 40 days. But surely the board imposed some changes to reduce such losses? Debt acquired thru capital improvement projects last year is not occurring now, either, and wouldn't it be reasonable to assume that monthly operating expenses are now less than last year's simply b/c #11 temporarily excuses LSH from paying down any debt it may have been paying last year?

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rumblefish

Jan-14-14 10:53 AM

Observer, double standard, why that's, that's the ping and the pong but commenter cop will find justification in everything the Observer says or prints

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Dcronlg

Jan-14-14 9:30 AM

The money buys them only 40 more days. whatever the outcome, be prepared a seriously scaled back operation.

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Chuck392

Jan-14-14 6:48 AM

I thought the Observer was in favor of consolidation of duplicative entities and be*******with the consequences. Or might there be a double-standard?

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