Copley Resolves to Acquire Orthopaedics Practice

by Amy Kolb Noyes

MORRISTOWN - If all goes as planned, Copley Health Systems will be
acquiring a local orthopedics practice this winter, currently owned by
doctors Glen Neale and Bryan Huber. Neale and Huber, and fellow
orthopedist Eric Mullins, will become Copley employees. Meanwhile, Neale
and Huber are having a new medical office building built near the Copley
campus on Washington Highway. Copley will be renting space in that new
building from Neale and Huber to house Mansfield Orthopedics, according
to hospital spokesperson Peter Wright.
The Copley Health Systems Board of Trustees adopted a resolution
authorizing the acquisition of Mansfield Orthopedics back on July 19.
The resolution outlines terms of the deal, including a transaction
deadline of March 31, 2005.
A memo containing the entire text of the resolution and a two-page
explanation from board chair John Merrill was circulated to Copley
employees last week. Merrill stated in the August 31 memo, "This
decision followed several months of study by a sub-committee of the
Board, assisted by members of the administration. It was initiated by a
request to the Board from Drs. Neale and Huber for support for their
plans to hire a third orthopedic surgeon and to build a new orthopedic
facility. After considering various methods of support, it was the
Board's judgment that this action represents the best way to ensure the
continuance and growth of a strong orthopedics practice serving the
Copley community..."
Wright said Neale and Huber brought a proposal to the Copley Board this
spring. He added the proposal will ensure the stability of one of the
hospital's "five core services."
"This gives us some stability," said Wright. "We're growing so we can
fulfill the growing demand." He noted Mansfield Orthopedics is currently
servicing patients from the Copley coverage area, as well as patients
who would normally go to hospitals in Newport and St. Johnsbury. He said
Newport has no orthopedic surgeons, while St. Johnsbury has only one
orthopedist. Wright said there is a nationwide shortage of orthopedic
surgeons, with half the hospitals in the country looking for orthopedists.
Wright said although the hospital is currently focusing on surgery and
orthopedics, those are just two of the five core services identified in
the hospital's strategic planning process. The other core services
include primary care, women's and children's services and emergency.
Wright commented, "All of our core services are important to us."
Merrill also discussed the five core services in his memo and stated,
"...Orthopedics makes a very significant contribution to the hospital's
overall profitability." He went on to state "the Board acknowledges that
acquiring an additional practice may seem inconsistent with the
hospital's current strategic focus..." Merrill added this was a topic of
"spirited debate among Board members..."
Merrill acknowledged a lack of information about the acquisition plan
has led to persistent misconceptions about the project. He wrote, "The
Board recognizes that its decision has caused some controversy,
particularly among certain members of the medical staff. For example,
there are those who feel that the Board acted in a precipitous and
secretive manner. The Board regrets this perception. In fact, the
acquisition was under active review for several months prior to the
vote, and while aspects of the discussion were necessarily confidential,
the Board believed that there was widespread general knowledge of the
proposal.
"The Board also regrets that it did not communicate sooner the details
of its decision. Some of the controversy seems to be based on
misinformation and a lack of information..."
Merrill went on to elaborate on details of the proposal, including that
the acquisition will not include payment for "soft" assets and, he
noted, Neale and Huber must first get a ruling from BISHCA before the
new facility can be built. Merrill also stated many of the details have
yet to be worked out, including details of the lease and employment
contracts.
Merrill concluded, "The Board is firmly committed to supporting a strong
and stable orthopedics practice as part of Copley's overall mission to
provide five core services. The Board's recent decision is intended to
accomplish this result. The Board, however, is not inflexible. If there
are suggestions to improve the current plan, or a better way to achieve
the same end, the Board will give these suggestions full and appropriate
consideration."