Orangeburg County Council vowed Monday to get to the bottom of conflicting statements between The Regional Medical Center and Ponder & Company, the firm hired by council to study the hospital’s finances and operations.

Also, council pushed for specific details of close to $2 million in legal fees paid by TRMC between 2004 and 2005.

Council Chairman Harry Wimberly, an outspoken critic of TRMC management, noted that TRMC President Tom Dandridge was quoted as saying that “Ponder had contacted the hospital about a sale or lease in 2002 or 2003.”

“It’s been denied by Ponder and in a letter sent accordingly. It’s alarming to me, as a County Council person, if it’s true. If it’s not true, then certainly there were some misquotes from the hospital. ... That needs to be clarified by both parties, so we see (there’s) no conflict of interest,” he said.

Council paid Ponder & Co. $75,000 for an operational and financial analysis of the hospital. The company presented its 138-page report on June 15.

Council agreed to Councilman Clyde Livingston’s proposal that the county administrator and county attorney determine “as to where the error in miscommunication is. It’s obvious someone misunderstands what took place.”

“That’s one of the main items that needs to be clarified,” Wimberly said.

In the June 28, 2006 letter to County Administrator Bill Clark that Wimberly referenced, Ponder President and CEO David Atchison stated that “Ponder & Co. categorically denies that anyone representing the firm contacted Mr. Tom Dandridge, or any other representative of TRMC, in 2002-2003, or at any other time, to solicit an engagement to represent TRMC in the sale or leasing of the hospital to Community Health Systems, or to any other company.”

TRMC officials, however, have provided The Times and Democrat with a copy of a March 7, 2002, letter to then-TRMC Board Chairman Millie Brunson from David C. Gordon, managing director of Ponder & Co.

Explaining that “we thought you might be interested in the enclosed announcement,” Gordon then informed Brunson of Ponder’s representation of Helena Regional Medical Center in Helena, Ark., in completing a long-term lease transaction with Community Health Systems of Brentwood, Tenn. The city hospital, which had issues of declining operating results, out-migration and physician recruitment problems, had been managed by Quorum.

The letter described Ponder’s working relationship with the hospital board chairman, including assistance in negotiations leading to the transaction and advice to the board on the “most cost-effective means of retiring its existing indebtedness.”

“We are pleased that the outcome of this transaction is a better hospital for Helena, improved financial resources for non-hospital health care needs and retention of ownership of the hospital by the city,” the letter stated.

In closing, the Ponder official provided a telephone number and told Brunson that she was to “feel free to call me” with any questions.

In addition to the Ponder questions, Wimberly said he also wants further explanation on several “large line items that we asked be broken down for clearer understanding.” The resulting legal fee analysis, he said, shows “in 2004 over $1 million in legal fees. In 2005, the figure was $888,729.54.

“It would be good to get an interpretation to know what’s going on,” Wimberly said. “We got a breakdown, not an interpretation.”

An example, Wimberly said, is the $250,00 payment to Ambulatory Surgery Center of Orangeburg that’s listed under “legal fees analysis.”

“I don’t think they have a license to practice law,” Livingston said.

Before outlining their concerns with the TRMC response, council first debated among themselves as to how and when to call for TRMC’s promised detailed response to the Ponder report. TRMC Board of Trustees Chairman Willie B. Owens has asked for between four and six weeks to respond.

“I think we should give them a date for their response, so we won’t be dragging it out,” Wimberly said, adding that the delay would be bad for business. “They’ve had the report since mid-June. Personally, I think Aug. 1 would be a good date.”

Livingston then moved that council ask the TRMC board for a response by Aug. 1.

With council members involved in the state Association of Counties conference during the first week of August, the regular Aug. 7 meeting was changed to Aug. 14.

Councilman Heyward Livingston suggested council give TRMC until Aug. 7.

“As long as we get it back one week before the Aug. 14 meeting, it will give the staff time to study it,” he said.

Councilman Johnnie Wright then suggested that council “ask, if it’s possible, we’d appreciate if they’d have it back by the first of the month. ... Instead of demanding, just ask.”

“My motion didn’t say ’demand,’” said C. Livingston.

Councilwoman Janie Cooper, another harsh critic of hospital procedures, said “If you ask if it’s okay, they’ll say no.

“We should set a deadline. We’ve given them the time they asked for.”

Wimberly then suggested that council request the response by Aug. 1, “if at all possible.”

“I’m against that ’at all possible’....We have given you your four to six weeks and we want it back by this date,” said Cooper.

Wimberly then concluded that “we’d like to have it back by Aug. 1.”

In other business, council:

-- Held a public hearing and gave second reading to an ordinance establishing a fee-in-lieu-of-taxes agreement with Ecka Granules of America.

Under the standard fee-in-lieu-of-taxes inducement agreement, in exchange for its investment, the company will pay a 6 percent assessment ratio rather than the usual 10.5 percent industrial assessment.

Ecka Granules, a German-based company, plans to locate in the former Federal Mogul Powertrain Systems building on Prosperity Drive. The company is expected to make a $10.6 million investment and hire about 40 people within five years.

-- Held a public hearing and gave second reading to an ordinance for a joint multi-county industrial park agreement with Dorchester County to include additional properties in both counties in the park.

Under the economic development incentive, the county where the industry is located will receive jobs credits, while the other county will get 1 percent of fees.

-- Approved a 10-year renewal of the county’s lease agreement with the town of Neeses for the same rate of $10,000 for the entire period. The site is used as an Emergency Medical Services substation.

-- Gave consent to Orangeburg Consolidated School District Five to sell the former Bowman Elementary School property to the town of Bowman.

-- Approved two changes in the upcoming meeting schedule. The regular Aug. 7 session will be held instead on Aug. 14. Also, the Sept. 4 session will be held on Sept. 5, due to the Labor Day holiday.

-- After amending the agenda, approved the short-term lease purchase option for a $75,000 piece of property off Edisto Drive that will be used as a senior citizens’ center.

As part of the CREST program, the property will be funded by the second phase of the capital projects penny sales tax and managed by the Council on Aging.

“And we will be removing a club from a residential community,” said C. Livingston, who made the proposal.

-- Agreed to invite Chief Louie Chavis of the Beaver Creek Indians to be on the agenda at the next session.

Citing a letter to council from Chavis, C. Livingston asked that the chief, who was absent from the public comments portion of the session, be allowed to speak at the end of the session.

“If he wanted to speak, he’d be here on time,” said H. Livingston.

-- Received as information, concerns from Emory Daff on how operation costs for a proposed gymnasium and swimming pool will be funded. With his estimates of $500,000 in annual maintenance and personnel costs, he also questioned why the county should support something that many, especially in the western end of the county, will not be able to use. Told that the county would be responsible for operating costs, he said, “I need to get me a for sale sign.”

-- T&D Government Writer Tucker Lyon can be reached at tlyon@timesanddemocrat.com or by calling 803-533-5545. Discuss this and other stories online at TheTandD.com.

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