WMBB News 13 - The Panhandle's News LeaderCommissioners Approve Bay Medical Lease

After sixty years as a public, not-for-profit hospital, Bay Medical Center is going private.  In a split vote Tuesday, Bay County commissioners approved the lease of the hospital to Sacred Heart Health System and LHP Hospital Group.

A handful of citizens came forward to oppose the deal and ask commissioners to delay their decision.  "We're giving away the local treasure for a handful of magic beans," Michael Tyler said of the $154 million agreement.  "We're not doing our children or our grandchildren that will be relying on these services forty years from now any favors."

But after nearly six months of negotiations and with Bay Medical experiencing a financial crisis, commissioners decided it was time to move forward.  Commissioner Guy Tunnell, the board's liaison during negotiations, made the motion.  "While not everyone is happy with [everything] in this contract, I think it is the best efforts of everyone involved," he said.

Chairman George Gainer, who has been an outspoken critic of the deal, took one last opportunity to let everyone know it.  "This has got to be the worst deal I have seen or known of since I've been on this board," said Gainer.  "This deal has been riddled with misrepresentation, lies and secrets."

After the 4-1 vote (Gainer was the lone dissenter), the chairman's comments drew a sharp rebuttal from Steve Johnson, Bay Medical's CEO.  "I thought it was uncalled for," said Johnson.  "I thought that the professionalism dropped down a notch [and] I think the fear that he tried to instill in our employees was unwarranted."

According to Jim Shannon, LHP's Executive Vice President, the next five weeks will be busy for the joint venture partners.  The company's top priority will be transferring Bay Medical employees to LHP's payroll system and benefit programs.

Hospital executives are glad the black cloud that has been hanging over Bay Medical is going away.  "It has been an enormous distraction to the normal day to day operations and I think that's what I'm most relieved at," said Johnson.  "We can get back to running a hospital and taking care of patients, which is what we do and what we do very well."

Shannon said open enrollment for the new benefit programs will be held during the first week of March and LHP plans to close the transaction on April 2.