By VICKI URBANIK

Porter Memorial Hospital officials have confirmed that if the same company that might buy the hospital were the top choice back in December, the county could have netted about $65 million more in cash.

Hospital officials on Monday released information on the offers submitted by the top three contenders vying to buy Porter hospital: Clarian of Indianapolis, Community Health Systems of Tennessee, and Triad Hospitals Inc. of Texas.

A task force composed of hospital and county officials picked Triad and entered into exclusive negotiations with the for-profit company in December. But last month, after two private equity fund buyers attempted to buy out Triad, CHS submitted a higher, and successful, bid to acquire Triad.

Now, the original offer from Triad stands even though CHS is the presumed buyer.

CHS has agreed to abide by everything in Triad’s bid -- including the lower cash price.

On the other hand, Triad made additional commitments that CHS didn’t, such as promise to build a new hospital within four years, support of the Magnet designation for the nursing staff, and a physician investment option.

Other than the higher cash price, CHS’ bid could be considered better than Triad’s in one other area: A commitment to continue existing hospital services for 10 years.

Hospital officials have said that money was never an issue when they reviewed the offers, and that they picked the company that they felt best matched Porter’s culture and commitment to physicians and nurses. At a recent Chamber of Commerce meeting, Hospital Board President Richard Wathen said the hospital felt it was important to select a company that already had an Indiana presence.

Of the three top contenders, only Clarian is a non-profit institution. CHS and Triad are both publicly traded, for-profits.

The information in the comparison released by the hospital includes the following:

Cash: Clarian offered a formula that included a maximum of $5 million plus a possible portion of the net operating margin for the first five years. CHS offered $145 million plus working capital. Triad offered $80 million plus working capital. The working capital will be based on a formula that takes into account certain assets and liabilities, with the final number adjusted at closing.

Charity Care: Clarian committed to provide $1.5 million in care. Both CHS and Triad offered to adopt the current hospital policy, which provides free or reduced hospital services based on patient income levels.

Services: Clarian said it would maintain core services, with a focus on areas such as cardiovascular, cancer and women’s and children’s health. CHS guaranteed that it would continue existing hospital services for 10 years. Triad guaranteed existing services for five years.

Indiana operations: Clarian and Triad both have Indiana facilities already. CHS does not.

New hospital: Clarian’s bid called for the county to issue bonds to build a new hospital, with the payback through hospital operations. CHS guaranteed a new hospital within five years. Triad guaranteed a new hospital within four years.

Board: Clarian would have set up a regional board with no guarantee of physician representation and minority Porter representation. CHS offered a local board with all Porter County residents and at least two physicians. Triad offered a local board with all Porter County residents, half of whom would be physicians and the other half representing the community.

Employees: All three offered to retain current employees, carry seniority status, and offer comparable benefits. Only Clarian and Triad committed to pursue the nursing Magnet designation, which has been a top priority for the hospital.

Physician “Integration”: Triad offered a physician leadership group and physician syndication, the latter of which would allow the physicians to invest in the hospital and increase their representation on the board to 60 percent. Neither Clarian or CHS offered such a commitment to the physicians.

Upcoming Meetings

The hospital will host a public information meeting tonight at 6:30 at the Porter County Expo Center about the hospital sale.

The official public hearing -- and possible vote -- on the hospital sale will be 6 p.m. April 24, Memorial Opera House, Valparaiso.

The public can obtain a copy of the purchase agreement with CHS at the Porter County Commissioners’ office in the County Administration Center, Valparaiso.

Porter County residents can take a survey and submit comments on the pending sale through this Friday at www.porterco.org

Posted 4/18/2007