Lakeside Hospital Teams With Blackhawk Healthcare
By Terry Hagerty
Assitant Editor - Bastrop Advertiser
Bastrop, Texas (July 4, 2009) Lakeside Hospital is back in the black, according to financial officials involved.
The previously announced foreclosure proceedings announced by Oklahoma-based Stillwater National Bank were curtailed when Blackhawk Healthcare, LCC (Austin) announced Wednesday it had finalized its purchase of hospital operations. Stillwater representatives said they had filed the foreclosure papers because the hospital had amassed almost $6 million in debt. On Thursday, Gary Schiff, one the main investors in the hospital, joined Blackhawk officials at a news meeting at the facility to talk about past financial matters and future plans for expanding the hospital’s offerings.
A Rough Start
“The bank (Stillwater) wasn’t convinced we were focused (on resolving the financial situation),” Schiff said. “I have to admit, (the foreclosure proceedings) worked, because they told us we had until July 7.” Schiff added, “I don’t fault (Stillwater) for the proceedings; we’re not proud of it. The community knows we had a rough start.”
He was referring to the history of financial operations of the hospital.
Blackhawk Healthcare now becomes the fourth administrator of Lakeside Hospital since it opened in February 2006. The facility is at 3201 E. Texas 71.“We got behind (on financial matters),” Schiff said. He is part of an original team of seven founders of the hospital, the other six being physicians from the community. He added that Lakeside also has 57 limited partners. He credited the partners with helping turn the hospital around.
“Those partners have put money into operation,” Schiff said, “They have stepped up, otherwise the hospital would have cratered long ago.” Schiff said he couldn’t talk much about the details of the financial problems because “potential litigation” is still involved.
A New Day
Three Blackhawk Healthcare officials talked extensively of their new plans for Lakeside, which has a current staff of 110 and total assets approximating $19 million. The officials are: CEO Matthew Hainline, President Todd Biederman and Jeffrey Madison, Executive Vice-President of Operations. During the course of conversation, Schiff referred to Blackhawk as “The White Knights,” in taking over operations.
Headquartered in Austin, Blackhawk describes itself as “an owner and operator of small community and critical access hospitals.” With its Rockdale hospital operations about 50 miles away, Blackhawk officials said Lakeside will be able to share medical expertise and diagnostic capability with the Bastrop facility. Biederman said those plans include a full-time general surgeon and full-time cardiologist, an orthopedic surgeon (including joint-replacement operations), immunologist and advanced diagnostic equipment. Madison said the partnership with Lakeside allows Blackhawk to “continue our relationships with our existing doctors and also search for other specialists to serve our patients.