Page 73 of Ten Day Affair
Estimated break-even scenarios under system integration
Coastal Baptist buyout path – Pros/Cons
It’s thin, but it’s something. A blueprint, or at least a breadcrumb trail.
Then I pick up the phone.
Not to call Angela, or to loop in my board.
I call Elliott Bancroft. COO of Coastal Baptist System. We haven’t spoken in a year, but he’s the only one I trust to give me a real answer without flagging it to my investors.
He answers on the third ring.
“Cole Houston,” he says, amused. “Either you’re selling something or about to ask for a favor.”
“Maybe both,” I say, leaning back. “Hypothetical question.”
“I’m listening.”
I keep it high-level. Coastal hospital, a long-standing name, financially underwater. I explain it has good bones but is bleeding money. Debt held by private equity, but no upgrades made yet, no branding shifts.
I leave out the part whereI’mthe private equity.
“Sounds like it’s primed for a concierge model,” Elliott says. “That area’s got the wealth for it.”
“It does,” I admit. “But what if that’s not the best outcome? What would it take for someone like Coastal Baptist to absorb the debt and keep it operating as a traditional nonprofit?”
He pauses. “You’re not just fishing, are you?”
“I’m testing feasibility. Let’s say the goal is to preserve public care access, legacy programs, trauma center, all of it.”
He exhales. “Then you’re talking full acquisition. We’d take over the debt, maybe buy out the property, and fold it into our system. If it worked, we'd keep it public-facing, keep the ER running, but cut or streamline the lower-performing departments. There would be no luxe amenities, no paywall medicine. It’d be functional, not flashy.”
“And the return?”
“For you? Modest at best. Break-even if you’re lucky. Probably five to ten percent below what you paid, since no improvements have been made. We’d be buying theliability, not the vision.”
So there it is. A way to keep Sam’s hospital from being gutted and keep her mother’s name from being stapled to a premium membership plan. But it comes at a cost.
No upside. No investor excitement. No three-X windfall.
Just peace of mind. I'd do it in a heartbeat, but unfortunately, it isn't just me. I have a board and investors. There's no way in hell any of them would agree to that.
“You trying to protect someone?” he asks quietly.
“I’m considering my options.”
“That’s a first.”
I ignore that.
