of that, Ron. I’m also aware that it's very costly to turn over tenants. We must be certain that any addition to our center has a solid reputation, has a good long term potential, and doesn’t overlap any of our existing disciplines.”
“You know that both those prospects fill the bill on all three. What’s the holdup?”
“Hold on there, Ron—don’t be so sure of yourself. Did you know that Mitchum’s shareholders are calling for the removal of their current board chairman? Are you aware that they’re conducting tests at pharmacies with in-store clinics? From what I hear, the test is going well and they’re considering a nation-wide roll-out. That would mean they would want to have a clinic in the pharmacy located in our building. A clinic that would perform minor check-ups and dispense prescriptions, if necessary. That would clearly be an overlap. So, unless they were willing to make a pharmacy in our building an exception from their plans, we couldn’t accept them as tenants.”
“Now, as for St. Stephens, were you also aware that they had a loss for the last two quarters and that they’ve had several recent resignations among their top management? Ron, these situations have to be carefully taken into consideration. They complicate the appraisal process. I realize that many companies have operating difficulties at some point, even some of our own practices, but it’s my ass on the line if things go wrong down the road.”
“I agree with you that Mitchum’s could be a problem, but not if they agree to build without a clinic. We need to discuss this issue with them immediately. I’m sure you know that rehab centers in general tend to have soft periods occasionally, but if you look at their year-to-year comparisons, you’ll see that the amount of the current slowdown is significantly less than it has been for the past three years. That suggests that their annual figures will be higher. Slowdowns are a quirk in the rehab business model and shouldn’t be a reason for denying them a partnership with our group.”
“We’re in agreement on that point, but you’re ignoring the management changes. That’s a red flag I can’t ignore. We need to examine deeper to ascertain what the cause is. The committee is committed to filling the two open spaces, but at the same time, it’s much too disruptive, from a center operations viewpoint, for us to do two separate openings. So if we can’t pass on Mitchum’s, were going to have to suspend our review for St. Stephens until we receive another suitable candidate.”
“That’s ridiculous, John, and you know it. Why not let Pete Mickelson worry about that? He’s the General Manager. It should be his call. Don’t you realize that there’s a glut on the market of space for medical offices? If we delay our approval any longer, St. Stephens is likely to accept an offer from another suitor.”
“We’ll have to risk that, but I don’t think there’s a better location or price anywhere else in town. Symington Medical Center is still the prime medical office facility in the city.”
“Damn it, John, you’re acting very arbitrary. Does this have anything to do with the Wallington Sleep Disorder Clinic?”
“Ron, how could you ask such a question? Are you suggesting that I’m being swayed by the fact that you managed to get the Wallington Sleep Disorder Clinic approved in my absence? The same Wallington Sleep Disorder Clinic that withdrew from the group seven months ago? The Wallington Sleep Disorder Clinic that subsequently went into bankruptcy, owing us six months of unpaid rental fees, and the same Wallington Sleep Disorder Clinic that managed to get the Center listed as co-owners in a lawsuit against them for non-delivery of pre-paid services? You’re not referring to that Wallington Sleep Disorder Clinic now, are you?”
“You’re being ridiculous, John. There was no way we could have known the management of the clinic would revert to shady
“You know that both those prospects fill the bill on all three. What’s the holdup?”
“Hold on there, Ron—don’t be so sure of yourself. Did you know that Mitchum’s shareholders are calling for the removal of their current board chairman? Are you aware that they’re conducting tests at pharmacies with in-store clinics? From what I hear, the test is going well and they’re considering a nation-wide roll-out. That would mean they would want to have a clinic in the pharmacy located in our building. A clinic that would perform minor check-ups and dispense prescriptions, if necessary. That would clearly be an overlap. So, unless they were willing to make a pharmacy in our building an exception from their plans, we couldn’t accept them as tenants.”
“Now, as for St. Stephens, were you also aware that they had a loss for the last two quarters and that they’ve had several recent resignations among their top management? Ron, these situations have to be carefully taken into consideration. They complicate the appraisal process. I realize that many companies have operating difficulties at some point, even some of our own practices, but it’s my ass on the line if things go wrong down the road.”
“I agree with you that Mitchum’s could be a problem, but not if they agree to build without a clinic. We need to discuss this issue with them immediately. I’m sure you know that rehab centers in general tend to have soft periods occasionally, but if you look at their year-to-year comparisons, you’ll see that the amount of the current slowdown is significantly less than it has been for the past three years. That suggests that their annual figures will be higher. Slowdowns are a quirk in the rehab business model and shouldn’t be a reason for denying them a partnership with our group.”
“We’re in agreement on that point, but you’re ignoring the management changes. That’s a red flag I can’t ignore. We need to examine deeper to ascertain what the cause is. The committee is committed to filling the two open spaces, but at the same time, it’s much too disruptive, from a center operations viewpoint, for us to do two separate openings. So if we can’t pass on Mitchum’s, were going to have to suspend our review for St. Stephens until we receive another suitable candidate.”
“That’s ridiculous, John, and you know it. Why not let Pete Mickelson worry about that? He’s the General Manager. It should be his call. Don’t you realize that there’s a glut on the market of space for medical offices? If we delay our approval any longer, St. Stephens is likely to accept an offer from another suitor.”
“We’ll have to risk that, but I don’t think there’s a better location or price anywhere else in town. Symington Medical Center is still the prime medical office facility in the city.”
“Damn it, John, you’re acting very arbitrary. Does this have anything to do with the Wallington Sleep Disorder Clinic?”
“Ron, how could you ask such a question? Are you suggesting that I’m being swayed by the fact that you managed to get the Wallington Sleep Disorder Clinic approved in my absence? The same Wallington Sleep Disorder Clinic that withdrew from the group seven months ago? The Wallington Sleep Disorder Clinic that subsequently went into bankruptcy, owing us six months of unpaid rental fees, and the same Wallington Sleep Disorder Clinic that managed to get the Center listed as co-owners in a lawsuit against them for non-delivery of pre-paid services? You’re not referring to that Wallington Sleep Disorder Clinic now, are you?”
“You’re being ridiculous, John. There was no way we could have known the management of the clinic would revert to shady
Similar Books
