Saturday, November 28, 2009

The State of Shannon

Guidestar posted 2008 990 reports for various Shannon affiliated organizations. Fitch recently rated Shannon Health System's bonds.

Rising stars include:

Shannon Trust-Earned $22 million in oil royalties. For the first time it deducted Shannon Medical Center from its balance sheet.

Shannon Medical Center-After $15 million in help from the Trust, the hospital had an $8 million excess. It sold investments during the credit crisis at a loss of $7.2 million. The hospital gave $70,000 to Esperanza Clinic via a grant and provided over $37 million in charity care. The hospital's interest in net assets of the Shannon Trust were $65.5 million at year end. The hospital filed updated bylaws with their 990. Article V provides for dissolution and liquidation of the corporation.

Shannon Medical Management (new)-This division provides management services for Shannon Clinic. It had $26.7 million in program service revenue in its first year of operation. This is likely associated with the system's demand that doctors become employees of Shannon, in independent practice like arrangements.

Shannon Joint Ventures (Kidney Dialysis)-Program service revenue rose from $2.9 million in 2007 to $3.5 million in 2008

Falling stars include:

Shannon Health System-Program service revenue declined from $7 million to nearly zero.

Legacy Health Plan-shuttered, winding down $6.1 million in assets

Legacy Management Services-shuttered, winding down $414,000 in assets

Legacy Health Solutions-shuttered, winding down $2 million in assets

Shannon Rural Health Clinics Inc.-no filing in 2008, 2007 report showed payment for providers in El Dorado and Ozona

Shannon Surgical Center-Had no revenue and no assets

Shannon Clinic-Program service revenues of $85 million, the lowest number since 2003. $19.5 million deficit for 2008. The clinic paid Shannon Medical Management $26.7 million.

Shannon Real Estate-had a net loss of $5 million in assets for the year. $2.5 million was transferred to Shannon Medical Management.

Angelo Healthcare Services-no longer listed on Shannon 990 reports as a subsidiary.

Floating stars are:

Concho Valley Surgical Partnership-received a loan of $3.4 million from the hospital. This is for the Shannon outpatient surgical center on Sunset Drive.

Regional Cancer Treatment Center-the hospital has a $1.8 million investment in RCTC (book value). This facility is undergoing expansion.

Shannon Business Services-seems to be a catch all category, including support for the helicopter service, the purchase of Dr. Vernon Ryan's practice/Shannon SportsMed, Shannon Wellness and fundraising (Children's Miracle Network).

An eye to the health reform future reveals what about Shannon's stars?

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