Officials at Palm Drive Hospital in Sebastopol, Calif., said its outside management firm did not do enough to offset financial loses even though the firm helped the hospital exit bankruptcy, according to a Press Democrat report.
Palm Drive hired HealthTech Management Services in Aug. 2009 to help turn the hospital around, according to the report. The hospital pays HealthTech roughly $720,000 per year for management fees as well as the hospital CEO's and CFO's salaries and benefits.
The board of directors reported the hospital was down more than $1.7 million this past year, but the management firm defended its performance, saying it helped the hospital out of bankruptcy and helped the hospital start new initiatives such as a new physical therapy center, according to the report.
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Palm Drive hired HealthTech Management Services in Aug. 2009 to help turn the hospital around, according to the report. The hospital pays HealthTech roughly $720,000 per year for management fees as well as the hospital CEO's and CFO's salaries and benefits.
The board of directors reported the hospital was down more than $1.7 million this past year, but the management firm defended its performance, saying it helped the hospital out of bankruptcy and helped the hospital start new initiatives such as a new physical therapy center, according to the report.
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