NV: Hospital District concerned about Renown’s purchase of ESMG

June 25, 2008Staff Report

SILVER SPRINGS–The Silver Springs-Stagecoach Hospital District Board of Trustees voted at its meeting last Thursday’s to direct District General Manager Kari Larson, legal counsel Mike Pavlakis and Board member Bill Brown to attend a meeting on July 3 with officials from Eastern Sierra Medical Group and Renown Hospital concerning a change of ownership of the medical group.

At that meeting, representatives will discuss what the purchase entails and the lease status between ESMG and the SSSHD board for the Lahontan Medical Center.

Board member Vicki Aveiro asked why the entire board was not invited to attend the meeting, to which Larson explained Pavlakis requested an initial meeting between the named parties and then a second meeting could be held which would include the entire board.

“He felt that was the best course of action,” said Larson of Pavlakis’ request.

She added Pavlakis indicated in an email that the July 3 meeting would address outstanding issues under the lease and the impact of the change of ownership.

Larson further explained Pavlaskis is unclear as to what kind of aquistion took place, adding Renown could have purchased the assets but not the business.

She said, “That will come out clearly after that meeting. He doesn’t have a clear understanding of what they (Renwon) bought.”

Larson continued saying Pavlakis also indicated such issues as Eastern Sierra Medical Group’s designation as the medical provider to test prostitutes that work in Lyon County brothels for sexually transmitted diseases will also be discussed.

The SSSHD general manager said Pavlakis also indicated that possibly Renown can bring additional services and resources to Lahontan Medical Center.

Board member Kay Bennett also indicated she had heard the Lyon County Brothel Committee intends to convene to discuss the brothel medical provider issue.

Board Chairman Mike Langevin indicated for years ESMG’s contract as the medical provider for the brothels kept the Lahontan Medical Center operating, saying, “It a very lucrative account.”

Larson will update the Board of the July 3 meeting at its regular meeting on July 17.




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