Struggling Southeast Arizona Medical Center Turns to Consultants

A bankruptcy court judge has approved a consulting agreement between Southeast Arizona Medical Center in Douglas and Oak Brook, Ill.-based turnaround firm People’s Choice Hospital, according to a Douglas Dispatch report.

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Under the arrangement, PCH will oversee all day-to-day operations of SAMC, which filed for Chapter 11 bankruptcy in February. SAMC’s board of directors will still supervise PCH.

PCH will look to make recommendations on what the hospital needs to do to return to solvency. Staffing levels, physician credentialing, expansion of surgical procedures and telemedicine are reportedly on the agency’s radar, according to the report.

PCH’s consulting fee includes 3.5 percent of SAMC’s gross monthly revenue, but PCH officials said they will not collect their fees until SAMC is viable again.

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