That all is not well at Rice Memorial Hospital has been apparent to many of the hospital's staff for some time.
The Aug. 9 front page article in this newspaper discusses the hospital's financial problems and points to factors facing all hospital's including declining reimbursement and fewer patient days. But massive debt is the basis for much of Rice Hospital's financial woe and blame for this falls on the shoulders of Chief Executive Lorry Massa and his administration.
The broad trends and factors alluded to have been in plays for many years. Competition from other hospitals and clinics doing outreach in Rice's traditional service area has been going on for more than 10 years.
Despite warnings, Massa chose to forge ahead with a very expensive building project. The "new" hospital, which opened with much fanfare and many accolades, was built with entirely borrowed money. Requiring even a small down payment would have changed the project substantially. Despite creative financing, restructuring of debt and other clever tactics, eventually the debt must be repaid and with interest.
This type of irresponsible borrowing and lending is the basis for the subprime mortgage crisis.
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Rice used the city of Willmar's bond rating as leverage in acquiring financing, but Massa stated he would proceed even without a more favorable interest rate.
Now, we are left with a lavish facility that has fewer beds and does not work as well as the one it replaced. And massive debt. With the hospital in financial crisis, Massa is abruptly and swiftly moving on, leaving others to deal with a problem for which he is largely responsible.
Dean Rau
Bayfield, Wis.
