QCourt approves resolution on FCMC non-profit status

Members of the St. Francis County Quorum Court last week met with Rick Charbonneau, senior vice president of business development and managed care for the Quorum Health Corporation, regarding the hospital’s recent change to non profit status. Justices also heard from the family of Jacob Marquis, who was killed along interstate 40 while working as a diesel mechanic with the TA truck stop in Earle. Charbonneau told justices that following restructuring and emerging from bankruptcy in 2020, the health group had accrued a lot of debt. "I have been with this company since 2019 and I have been here many, many times working with this hospital and our 11 other hospitals,” said Charbonneau. “Ever since we emerged from bankruptcy in 2020, restructuring, we have incurred a very high debt load and a very expensive debt. We are private-equity backed and we have lenders." Charbonneau explained that during a meeting with the CEO of the Quorum Health Corporation, they decided to explore the option of becoming a non-profit hospital. "As you can imagine, if you come out of a bankruptcy, the interest rate on that debt would be very expensive," said Charbonneau. "Our CEO and I spoke about 18 months ago. That is how long it has taken to get to this point. He said, ‘There has got to be a better way to serve our communities. Instead of high debt and private equity.' We kind of jokingly said let’s look at becoming a not-for-profit company, like many other hospitals are doing." Charbonneau told justices that by doing this, they will drop their rates from around 13% to about 7%, freeing up a lot of money to be put back into the hospitals the group owns. "So we explored it," continued Charbonneau. "We engaged Bank of America and many others. Low and behold we came to an agreement to buy our private equity out, all of our lenders out, by going to the bond market and raising debt. We had to raise it by $1.2 million. What that does is like if we had a house and had a very expensive mortgage with a rate of about 12 to 13%. When we issue bonds, that drops to about 7 to 7 1/2%. "That would free up about $40 million per year to go back into our hospitals," continued Charbonneau. “We are actually making money today. In my eight years here, it is the best we have ever done. But, every free dollar of cash flow goes to pay debt, unless, you know, we need a new roof. Emergency things, we can fix at the hospital, but couldn't invest in MRIs, CTs, the things that would actually provide better patient care. So, that is why we are doing this. That is the why behind it." According to Charbonneau, the group recently raised the pay rate for nurses at FCMC by $5 per hour because they can't compete with Memphis pay rates. "The ability to bring more cash flow allows us to reinvest in the assets, but also the people in the hospital," said Charbonneau. "For example, we have already made decisions. We are confident, we will get this done by October, Forrest City specifically. We just raised the wages, per hour, for all our nurses by $5. The reason we did that is we can't compete with Memphis, so we have all of this agency staffing, which costs a lot more than just hiring somebody full-time. We went ahead and made that investment now because we know we will have the cash flow to pay for it." Charbonneau said that becoming a not-for-profit entity would also open the door to partnerships with groups like Baptist Health and UAMS. "Another thing that being non-profit does for us is that it allows us to get grants," said Charbonneau. "We can't do that as a for-profit company. The biggest thing for me, in this state, is that it allows me to go out and have a conversation with Baptist or UAMS about partnerships or something like that. They really don't like partnerships with private equity companies. It doesn't look good for them. It is hard to get through their system. Immediately, I have gotten phone calls, and I have meetings in Little Rock next week about how we can work together." Charbonneau told the Court that employee morale had never been higher than it was after these announcements were made to the hospitals they own. "From an employee morale standpoint, this is the highest we have seen it since we made this announcement," said Charbonneau. "We also made the announcement that we are making an investment in what is called EHR and EMR, which are our computer systems that we have in our hospitals. What we have today is barely better than paper. But, we have had to live with it because we couldn't afford a change. When we do this, we will have to talk about how we have $20 million in free cash flow right now. When we get this done, we are going to have $150 million in reserves." "So what are you needing from the Quorum Court?” asked Justice Regan Hill. "There is an affidavit in front of you," said Charbonneau. "It is a tefra affidavit." St. Francis County Attorney Fletcher Long explained that by Charbonneau being at the meeting, it meets the requirements set forth by Wisconsin law to have public meetings and pass resolutions in the counties where the group operates. "They are meeting the obligation of Wisconsin law by having a public meeting in the counties they serve," said Long. "They are selling these bonds. This hospital operation will be barred and secured for the bond. In order to do that, Wisconsin law requires them to have a public meeting here at the site of the hospital and also pass this resolution saying that we are in approval. It doesn't cost anything." The Court unanimously voted in favor of passing the resolution for the hospital. In other business, justices heard from Cheryl Profitt regarding the passing of her son Jacob Marquis along a stretch of I-40 in SFC in October of 2025. "I wish I was sitting here today for a very different reason," said Profitt. "I wish I was here talking about Jacob graduating, starting his career, getting married someday and having children, telling me all of the stories a mother hears from her son. We had the best mother-son relationship. It breaks my heart to talk about my son in the past tense. Instead, I am here asking you to help me make sure my son’s name is never forgotten." Profitt told the Court that while he was cleaning up after a job near I-40 mile marker 262, he was struck and killed by a passing semi that never stopped moving. "He was only 18 years old when his life was taken," said Profitt. "He would come home most days, covered from head to toe like he had rolled in grease and he smelled like diesel. He loved it. One month after graduating high school, Jacob started working at TA in Earle. He was proud of what he could do. He was learning a trade for his future. On the morning of Oct. 10, Jacob went to work like he had done many times before. He was doing his job. There was a problem at mile marker 262. He finished fixing the tire and he was gathering his tools. Another semi came along and struck him, killing him. They kept going and left my son lying the middle of I-40. Nobody knows who hit him. We never got answers of who is responsible." According to Profitt, she was coming before the Court with hopes of being able to designate a sign in his honor on the overpass of Highway 540 at the Earle exit along I 40. "I don't want Jacob to become just another name on a report," said Profitt. "I don't want him to just be another statistic. Jacob was a roadside worker. I am asking for a memorial sign for Jacob to be placed on the overpass on Highway 540. That overpass means something to me. He passed over it that morning expecting to pass over it again on his way home. Every time I see that overpass or hear someone mention I-40, I think of my son." The Quorum Court unanimously voted in favor of the resolution to adopt the memorial. The resolution will be sent to state officials who will have the final say.

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