Public hearing Tuesday on LRGH-Concord deal

LACONIA — The public will get a chance to weigh in next week on the proposed sale of LRGHealthcare to Concord Hospital at a hearing being held by the New Hampshire Attorney General’s Office.

On Tuesday, the Charitable Trusts Division will hold a public hearing via Zoom from 4 p.m. to 6 p.m. People can learn more at doj.nh.gov/charitable-trusts.

Most issues regarding the sale were resolved in U.S. Bankruptcy Court late last year, but it will likely be a couple months before the deal actually closes.

A routine hearing is planned for 9 a.m. Friday before Judge Michael Fagone. Members of the public interested in listening in can do so by calling (855) 855-8556, Access Code 7890736#.

“Tomorrow’s hearing is to resolve any remaining concerns related to Concord Hospital’s assumption of third-party payor contracts,” said LRGH President and CEO Kevin Donovan. “All issues have been worked out ahead of time so we do not expect major issues.”

“There will be more hearings as time goes on with the goal still to close by April 1, 2021. That date assumes we receive all regulatory and legal approvals, including authorization from the New Hampshire Attorney General’s office and the probate court.”

Robert Steigmeyer, president and chief executive officer of Concord Hospital, said the attorney general’s charitable trust and antitrust divisions are conducting regulatory review. He said this review process is “well underway.”

Steigmeyer said bankruptcy proceedings have gone off without problems.

“I believe the various parties worked together well and the process went smoothly,” Steigmeyer said.

A week ago, Advanced Orthopaedic Specialists in Gilford announced the decision to disband the practice had been made after they learned Concord Hospital would not renew the provider service agreement it had with Lakes Region General Hospital since 2004.

LRGHealthcare said in a statement that the provider services agreement did not meet requirements to maintain a financially viable healthcare system.

In fact, Concord Hospital will not assume any of the LRGHealthcare professional services agreements now in place, including the one with the Laconia Clinic, Donovan said.

“Concord Hospital will, however, determine if employment offers can be made to the physician and advanced practice providers of the Laconia Clinic,” Donovan said. “Those decisions will be made on a specialty by specialty basis through discussion with the Laconia Clinic providers in the coming month.”

The bankruptcy occurred because LRGH accumulated a huge debt load. It was losing more than $1 million per month before the situation grew worse through the COVID-19 pandemic.

Steigmeyer elaborated in an email on Thursday.

“The only thing I would say or emphasize is that we (Concord Hospital) take the responsibility of getting this right for the Lakes and Three Rivers Regions very seriously,” he stated.

“Getting it right means establishing a local, sustainable community based health care system. Clearly any issues of the past that contributed to a bankruptcy need to be addressed upfront if we are to be successful. I would also note that we will continue with an ‘open’ medical staff model which means any provider that is qualified can join the medical staff and continue to serve these communities.”

Donovan said plans would be determined to continue to provide local orthopedic services.

On Dec. 24, Judge Fagone approved an order in favor of the sale of LRGHealthcare to Concord Hospital for $30 million. The assets being sold include Lakes Region General Hospital and Franklin Regional Hospital.

LRGHealthcare filed for bankruptcy on Oct. 19 after years of losing money.

Net proceeds from the $30 million sale are to be applied to the biggest facet of LRGHealthcare’s debt, a $111 million facility mortgage owed to Key Bank and insured by the U.S. Department of Housing and Urban Development.

LRGHealthcare has 1,400 full- and part-time employees and is the largest employer in the Lakes Region.