Baptist Health System works to improve finances. - The Knoxville News-Sentinel (Knoxville, TN)

Byline: Carly Harrington

Apr. 27--Baptist Health System, working to identify ways to cut costs and improve finances, has found more than $15 million in savings and revenue that can help the ailing hospital operator.

CEO Janice James said Thursday the findings, which include a range of ways to reduce costs and enhance income, are part of initial reports conducted by Wellspring Partners, the management-consulting firm Baptist hired in February to manage daily operations and turn finances around.

While the overall assessment won't be complete until May, James said there is enough data already to show the health system can return to a positive cash flow position and profitability.

'The organization has been chewing through some of its cash this year, but we can definitely reverse that,' James said.

Some operational improvements identified include matching the right workload with the right employees, renegotiating purchasing contracts for supplies, and limiting outsourced services that have rates that aren't always competitive or beneficial to Baptist.

Managed care contracts, which James said were 'not competitive,' also offer opportunities.

'There's always improvements that you can make obviously in all these areas, but it's by no means a train wreck,' James said.

The health system already has begun implementing some recommendations in areas such as managed care, physician recruitment and joint ventures.

At Baptist's West campus, efforts are under way to make the operating room more efficient and increase volume.

James said she has approved 'significant capital expenditures' for instruments and other equipment that was keeping the hospital from doing more surgeries.

On Monday, Baptist plans to open the third floor of the West hospital, which has never been used because the volume wasn't there to support it, James said.

The floor will serve patients with injuries or illnesses related to orthopedics and neurology.

Most of the recommendations are to be implemented by year's end.

In March, James said the health system actually 'broke even.' Although there was a one-time prior-period cash adjustment, the results were encouraging and buy Baptist extra time to improve its financial condition.

James declined to provide specific financial data.

Last month, Moody's Investor Services downgraded Baptist's bonds on about $193 million of debt because of 'a continuation and sizable increase in operating losses' in fiscal 2006 and year-to-date fiscal 2007.

The losses totaled $17.9 million in 2006 and $16.2 million through the first seven months of fiscal 2007.

But James and her team are optimistic about Baptist's growth potential in Knoxville.

Baptist, she said, has a lot of positive factors working in its favor, including a strong culture, spirit and work ethic from the staff, physicians and the board.

A number of markets that James said she has worked in are 'very tough,' with declining populations and a weak industry base.

'That's not true of Knoxville. Knoxville is a fabulous market,' said James, who has worked in the health-care industry for 30 years. 'You've got growth. You've got a good industry base. You've got a good labor force. You've got this downtown development project that's wonderful.'

One of the biggest challenges James has had to face is the rumor mill, which she said 'works overtime.'

'It's just a very aggressive, competitive environment, more overtly aggressive than I've ever seen. There's lots of rumors,' James said.

In an effort to tackle rumors about Baptist and its future, James started the 'Rumor Cooler' blog to answer questions from employees and physicians. She also has held employee forums at its three campuses and met with members of the medical staff.

While some rumors are bothersome, James said she focuses on the task at hand.

'Right now, we need to get our house in order,' she said. 'That's what we're working on.'

To see more of The Knoxville News-Sentinel or to subscribe to the newspaper, go to http://www.knoxnews.com.

Copyright (c) 2007, The Knoxville News-Sentinel, Tenn.

Distributed by McClatchy-Tribune Information Services.

Team Health to build computer data center. - The Knoxville News-Sentinel (Knoxville, TN)

Byline: Roger Harris

Aug. 11--Knoxville physician staffing company Team Health Inc. plans to build a $2.5 million computer data center in the Pellissippi Corporate Center.

The Development Corporation of Knox County approved Thursday the sale of 2.53 acres in the West Knox County business park to Team Health for $145,000 per acre.

Team Health plans to consolidate functions of existing data centers in Knoxville and Florida into the new center, which could be completed by April 2007, Richard McDaniel, the company's vice president of administration, said Thursday.

'We are expanding the IT platform to position the company for future growth,' McDaniel said.

The company will continue to operate a Florida data center, although some of the Florida center's programs will be moved to Knoxville, McDaniel said.

In addition to relocating current employees, 12 to 15 new jobs will be created over time at the new West Knox County data center, McDaniel said.

The jobs are the high-wage positions -- averaging more than $100,000 a year in salary and benefits -- the Development Corp. tries to attract to the business parks it manages, said Todd Napier, director of development for the Development Corp.

Team Health is buying a triangular-shaped parcel near the park entrance at the intersection of Hardin Valley Road and Cherahala Boulevard. The park is just east of the intersection of Pellissippi Parkway and Hardin Valley.

Team Health provides medical staffing, management and support services for 510 hospitals and their affiliated clinics and surgical and imaging centers in 44 states and Puerto Rico, according to the company's Web site.

In an unrelated matter Thursday, the Development Corp. authorized application for a state grant to pay for a storm water drainage system to serve Kentucky Steel Center Inc., which is building a plant in Eastbridge Business Park in East Knox County.

The Development Corp. plans to apply for a state Fast Track Infrastructure Development Grant of up to $66,000. The total cost of the drainage project is about $100,000. Kentucky Steel and the Development Corp. will provide the balance of the funding, Napier said.

Kentucky Steel, which does business in Knoxville as Tennessee Steel, supplies steel coils and slit steel to the Exedy America Corp. plant in Eastbridge. Exedy makes torque converters for the automotive industry.

Earlier this year, the Development Corp. sold 11.5 acres in Eastbridge to Kentucky Steel, which is building a $5 million facility.

To see more of The Knoxville News-Sentinel or to subscribe to the newspaper, go to http://www.knoxnews.com.

Copyright (c) 2006, The Knoxville News-Sentinel, Tenn.

Distributed by McClatchy-Tribune Business

News.

CITY & COUNTY CELEBRATE NATIONAL EMPLOYEE HEALTH & FITNESS DAY, MAY 16 - US Fed News Service, Including US State News

The city of Knoxville issued the following press release:

The City of Knoxville is joining Knox County Wednesday, May 16, to celebrate National Employee Health & Fitness Day.

Included among the activities will be a walk led by Mayor Bill Haslam, some health-related 'Lunch and Learn,' programs on 'Workday Wellness' and a badminton tournament on the City County Building lawn pitting teams from the city against the county.

Blue Cross Blue Shield of Tennessee; the Knoxville Track Club, the YMCA of East Tennessee and Court South, are all involved in the activities.

This is the first time the City has officially taken part in National Employee Health & Fitness Day.

Kessala Dorsey, a benefits coordinator with the City's Risk Management office who is one of the coordinators of the event said the city wants to support activities that encourage employees to live healthier.

Megan Amburn, benefits assistant with the county's human resources office, is coordinating the event for Knox County.

'We want to keep our employees healthy and we want to keep them around here longer,' Dorsey said before adding that the city would like the event to grow.

'When it does grow we'll have more competitions, different speakers and two or three lunch and learns going on at the same time,' she said.

The schedule begins at 10 a.m. when Mayors Haslam and Ragsdale issue a joint proclamation declaring it National Employee Health & Fitness Day in Knoxville and Knox County.

Mayor Haslam and representatives from Blue Cross Blue Shield, the YMCA, the Knoxville Track Club and Court South will then lead a walk through downtown Knoxville to Market Square and back.

The lunch and learns are set for noon to 1 p.m. in the Human Resources Conference room in the City County Building and from 11 a.m. to 1 p.m. in the Knox County Health Department's Community Room.

The badminton tournament will begin at 1:30 p.m. on the City County Building lawn.

Dorsey said representatives from the YMCA and Court South will be doing a nutrition spot while speakers from the Knoxville Track Club and Blue Cross Blue Shield will discuss the Walking Works program during the Lunch and Learn.

She said the city plans to get involved in the Walking Works program and hopes to encourage employees to walk in the downtown area and on greenways among other sites.

'We thought it would be great to make it into a competition with the county,' she said. 'We thought if we made a friendly competition out of it, that would keep up the interest.'

Dorsey said the city hopes to install software on its intranet that would allow employees in the program to convert their steps, or the distances they walked on a greenway, for instance, into miles.

UT INTERIM PRESIDENT JAN SIMEK APPOINTS STEVE J. SCHWAB, M.D. CHANCELLOR FOR THE UNIVERSITY OF TENNESSEE HEALTH SCIENCE CENTER. - States News Service

KNOXVILLE, TN -- The following information was released by the University of Tennessee:

Interim UT President Jan Simek has recommended that Steve J. Schwab, M.D. be elected chancellor for the University of Tennessee Health Science Center. Simek recommended Schwab to head the Memphis-based UT Health Science Center at a meeting of the Executive and Compensation Committee in conjunction with the Annual Meeting of the UT Board of Trustees in Knoxville. The committee approved Simek's recommendation and will forward it to the full Board of Trustees for action on Thursday.

Schwab has served as UTHSC interim chancellor since Oct. 1, 2009. He simultaneously served as executive dean for the UTHSC College of Medicine, largest of the Health Science Center's six colleges. A national search was conducted to fill the chancellor post.

'Throughout the search process, Dr. Schwab demonstrated his commitment to thinking strategically, responding openly, and acting in a collaborative and decisive fashion,' Simek said. 'His management skills coupled with his ability to innovate and build strong, mutually beneficial bonds with internal and external partners are tremendous assets that he brings to his role as chancellor.

'Under Dr. Schwab's leadership, UTHSC will continue to expand its outreach and service to the community, to increase its research capacity, and to sustain its long-term commitment to educating competent caring health care professionals to serve the region and the global community.'

Schwab joined UTHSC as the first-ever executive dean for the UT College of Medicine in July 2006. In this role he took on administrative responsibility for the Health Science Center's three College of Medicine campuses in Memphis, Knoxville and Chattanooga. In 2007, he assumed direct responsibility for the College of Medicine Memphis campus due to a vacancy in the Memphis dean's office. As chancellor, Schwab will relinquish his role as executive dean, and a search will be conducted for his successor in that post.

'It is an honor to be selected to serve as the leader for the UT Health Science Center team,' Schwab said. 'Our faculty, staff and students have many reasons to be proud of our legacy and optimistic about our future as we move forward to fulfill our mission -- to improve the health of our local, regional and global community.'

In addition to serving as chancellor, Schwab will continue serving as chairman of the UT Medical Group Board of Directors, a position he has held for three years. UT Medical Group (UTMG) is the private group practice affiliated with the UT Health Science Center College of Medicine faculty. A not-for-profit, non-tax-supported group practice, UTMG is dedicated to quality patient care, medical education, and medical research. With more than 350 clinicians, UTMG is the largest physician group in the region.

Prior to joining UTHSC, Schwab served as interim dean and chief clinical officer of the Medical College of Georgia, where he was also a Regents Professor and chairman of the Department of Medicine. Before that, from 1985 to 2003, he was at Duke University where he rose to become professor and vice chairman of medicine. He has held board positions in both the private and public sectors. Schwab is internationally recognized in the field of renal disease with more than 150 refereed publications and five books to his credit.

As the flagship statewide academic health system, the UT Health Science Center's mission is to bring the benefits of the health sciences to the achievement and maintenance of human health, with a focus on the citizens of Tennessee and the region, by pursuing an integrated program of education, research, clinical care, and public service.

The UT Health Science Center's main campus is in Memphis and includes six colleges: allied health sciences, dentistry, graduate health sciences, medicine, nursing and pharmacy. UTHSC has additional colleges of medicine and pharmacy plus an allied health sciences unit in Knoxville and a College of Medicine campus in Chattanooga.

NY firm acquires Team Health. - The Knoxville News-Sentinel (Knoxville, TN)

Byline: Carly Harrington

Oct. 19--Knoxville physician staffing company Team Health is being acquired by the New York private equity firm The Blackstone Group, stopping Team Health's plans to go public.

The company's headquarters will remain in Knoxville, and the current management team will continue to lead the company and remain significant equity holders, Team Health's co-founder, chairman and chief executive Lynn Massingale said Tuesday.

Terms of the deal, which is expected to be completed by mid-February, are not being disclosed.

Team Health employs about 7,000 health-care professionals in 44 states and is the nation's largest provider of hospital-based clinical outsourcing. It specializes in emergency medicine, hospital medicine, anesthesia, teleradiology, pediatrics, critical care and military staffing.

The company employs almost 900 in Knoxville and reported 2004 net revenue of $1.6 billion.

Blackstone's acquisition 'is strictly an investment interest,' Massingale said. 'There's no merger. Management stays intact.' Massingale said Team Health was in the process of launching an initial public offering of stock when Blackstone expressed an interest in the company.

'They elected to make a proposal to us that was compelling,' Massingale said. 'Overall, we felt it was a good opportunity to remain a private company.'

The deal will allow an investor group comprised of Madison Dearborn Partners LLC, Cornerstone Equity Investors LLC, Beecken Petty O'Keefe & Company to exit immediately.

That group purchased a majority interest in Team Health in 1999 but wanted to move on, Massingale said. That was one reason the company considered going public.

Massingale said Blackstone would give Team Health new opportunities for growth through strategic relationships and acquisitions. Blackstone's Private Equity Group has invested in about 90 companies, with current holdings including Allied Waste, Celanese, TRW Automotive, and Universal Orlando. It manages $14 billion through five funds and its target investment is $100 million to $400 million, although it will go outside that range 'on an opportunistic basis,' according to its Web site.

Blackstone has a reputation of being a 'credible, high-quality global investment firm' that has the ability to fund significant acquisitions without having to raise additional money, he said. The global investment and advisory firm also is interested in investing in healthcare.

'We believe that's a good thing for us,' Massingale said. Team Health's corporate headquarters will remain in Knoxville at its Winston Road location. It is consolidating four other administrative offices located throughout West Knoxville to 30,000 square feet in CenterPoint Park off Pellissippi Parkway.

Neil P. Simpkins, senior managing director of The Blackstone Group, said in a press release that the partnership would allow Team Health to continue to provide high-quality health-care services across the country.

'Dr. Lynn Massingale and his management team have built an extraordinary company that serves the many needs of hospitals and physicians. We look forward to helping the company continue to grow and to achieve its strategic goals,' Simpkins said. Team Health was founded 25 years ago to provide emergency department administrative and staffing services to two area hospitals. Despite its current size, Massingale said Team Health only has 6 percent of the market share.

'So there's lots and lots of room for growth in our core areas,' Massingale said. 'Our goal is to continue to do that.'

To see more of The Knoxville News-Sentinel or to subscribe to the newspaper, go to http://www.knoxnews.com.

Copyright (c) 2005, The Knoxville News-Sentinel, Tenn.

Distributed by Knight Ridder/Tribune Business News.

COVENANT HEALTH SEEKS COMMUNITY MEMBERS FOR CELEBRITY TRAINING TEAM - US Fed News Service, Including US State News

The city of Knoxville issued the following press release:

Amateur runners seeking to kick it up a notch will have the chance to apply for a spot on an elite team training for the 2007 Covenant Health Knoxville Marathon. In announcing the new program today, Covenant Health fitness expert Missy Kane encouraged individuals of all fitness abilities to apply.

'We are looking for men and women of varying ages and running experience,' said Kane, who will coach the team. 'Our training program will be personalized so you will receive the power, strength and motivation you need to run the 26.2 mile marathon with confidence.'

Five people from the community will be selected to join the Covenant Health Knoxville Marathon team that also includes celebrity team members representing the event sponsors and news media. Team members may train to run, jog or walk the full or half marathon, relay or 5K. There is no cost to apply or to participate, if selected. Adults 18 and over are eligible to apply and applications will be accepted until September 30 and are available at www.knoxvillemarathon.com or by calling Covenant Health at 865-541-4500.

Team members will be announced and begin training in November. The team will be coached by a host of Covenant Health sports medicine specialists, trainers, therapists, nutritionists and other clinicians. Each team member will receive a comprehensive runner's evaluation screening from Covenant Therapy Centers, a fitness evaluation from Fort Sanders Health & Fitness Center, and personalized training from coach Missy Kane, former Lady Vol distance coach and Olympic runner.

The ups and downs of the team members' training experience will be featured in news media and other venues, and the team will make public appearances to promote the marathon. WBIR will air a one-minute film segment on the team's progress each week beginning in December and leading up to the April 1 event. The film segments will also be available on streaming video at www.knoxvillemarathon.com

'The training experiences of the team members will generate interest in the marathon,' Kane said. 'We also hope their stories will motivate other people to exercise and to incorporate a physical activity into their everyday lives.'

In addition to the 26.2-mile anchor race, the Covenant Health Knoxville Marathon will offer a 4-person relay, 13.1-mile half marathon, a 3.1-mile (5K) run, and Cariten Kids' Run, all finishing at the 50-yard line in the University of Tennessee's Neyland Stadium.

The Covenant Health Knoxville Marathon is presented by Covenant Health and sponsored by the Knoxville Track Club, the City of Knoxville, the University of Tennessee, WBIR Channel 10, the Knoxville News Sentinel and The Point 93.1. The weekend event will include a pre-race EXPO on Saturday, March 31 and the marathon and full running events on April 1.

Despite killings, charity to remain in Afghanistan -- Knoxville doctor, 32, among 10 victims - The Commercial Appeal (Memphis, TN)

KABUL, Afghanistan - A Christian charity said Monday that it hadno plans to leave Afghanistan despite the brutal murders last weekof 10 members of its medical aid team, six of them Americans.

Police were holding the lone Afghan survivor for questioning,insisting he is not a suspect although authorities have lingeringquestions about his account of the horrific massacre in northernAfghanistan.

The attack, far from the main theaters of the war in the east andsouth, underscored the growing insecurity in the region.

The survivor of last week's attack, a driver named Saifullah whohad worked for the humanitarian group for four years, was flown toKabul on Sunday from Badakhshan province. Also taken to the capitalwere the bodies of the six Americans, two Afghans, a Briton and aGerman who were gunned down after finishing a two-week medicalmission treating Afghan villagers in the remote Parun valley ofNuristan province. One of the victims was Cheryl Beckett, 32, ofKnoxville, an expert in nutritional gardening and mother-childhealth.

The Taliban claimed responsibility for the Thursday murders,alleging that the group, most of them devout Christians, were spiesand tried to convert Muslims. Some local officials suspect commoncriminals carried out the attack.

U.S. Embassy spokeswoman Caitlin Hayden said the FBI has openedan investigation into the deaths in cooperation with Afghanauthorities.

During a news conference Monday, Dirk Frans, the director of theInternational Assistance Mission that organized the trip, insistedthat conversion was not the aim of the trip and that the Afghangovernment had given them permission to treat Afghans in the area.

He said the IAM had made no secret that it was a Christianorganization during its four decades in Afghanistan and was legallyregistered with the Afghan government.

'Our faith motivates and inspires us but we do not proselytize,'he said. 'We abide by the laws of Afghanistan' that makeproselytizing illegal.

Team leader Tom Little, 62, of Delmar, N.Y., and Dan Terry, 64,had worked in Afghanistan for more than 30 years and had raisedfamilies here.