Finding a formula for success at Sharon Hospital

When Sharon Hospital first converted to for-profit with the sale to Essent Healthcare Inc. in 2002, it had lost $16 million over the previous six years as a nonprofit entity. Once it became for-profit, the first years under Essent proved to be far better financially, resulting in about $18 million being transferred from the hospital to the Foundation for Community Health, Inc., with the oversight of Connecticut’s then-Attorney General Richard Blumenthal, in June of 2005. The Foundation for Community Health, to refresh our memories, is the nonprofit public charity that was created in June of 2003 through the conversion of the charitable assets from the sale of the hospital.

Fast forward to 2016, and the front page Lakeville Journal article by Cynthia Hochswender on the Sharon Hospital Holding Company, Inc., independent auditor’s report on the fiscal year ending Sept. 30, 2015. The financials show a comprehensive loss of $17,986,362. But as the hospital’s chief executive and financial officers, Peter Cordeau and Christian Bergeron respectively, explained in a meeting with The Lakeville Journal on July 7, the large loss reflects a one-off accounting change relating to the way the nonprofit money was counted in a Regional Care merger with Essent in 2011. 

The hospital’s administrators were much more encouraged by the approximate $700,000 increase in income from operations than they were discouraged by the accounting correction. When Blumenthal was contacted for a statement in 2005 at the time the money was slated for the Foundation for Community Health, he said he was not surprised that Sharon Hospital was then making money. “However, I am pleased. It means Sharon Hospital is not only serving the health needs of the community, but also enhancing the health community in the region.”

Those words could and should apply today, as far as the goals of this administration at the hospital go. Cordeau and Bergeron seem determined to carefully research the actual needs of the community as they decide what programs and services to implement. They have been reaching out to people in the area to hear complaints, suggestions and requests, which they do seem to be taking to heart and analyzing as they decide on their next steps. After some missteps (such as having temporary physicians staffing the emergency department for too long), careful consideration of the way services are delivered, as well as what services are offered, will be critical to the success of the hospital.

Here’s hoping the current administration’s optimism is well-founded, and that the words of Blumenthal 11 years ago will resonate today as the hospital moves into the future. Because the entire region not only  depends on Sharon Hospital as a center for health care, but also for employment, community programs and all kinds of essential support for area residents.

With the perspective gained over the years since 2002, it should be clear that this community institution is vital to all who need access to not only good quality health care, but also to the economic and social health of the area. It should also be clear that such success will only come with good management for its staff and excellent care for those who come through its doors in need of help.