BANDON — The Southern Coos Health District may need to reassess whether a $300,000 physician recruitment process is necessary.

Hospital Chief Executive Officer Jim Wathen said he will have to speak with the hospital board on what direction to take in light of information received by a physician he thought was leaving the area.

Wathen said he was given a verbal resignation in early August by local private practitioner Dr. Gail McClave, though he had not received written notice. In response, Wathen called a special board meeting on Aug. 12. The board voted unanimously to approve up to $300,000 to recruit and retain a new physician.

The money was to come from funds set aside after the sale of Ocean View Care Center in 2005. The care center closed its doors in June 2004, and subsequently sold for $4 million. According to hospital Chief Financial Officer David Rollins, $2.25 million is left in the Ocean View fund.

After hearing of the board’s action, McClave expressed surprise and said she had not yet made up her mind about leaving her practice.

In a recent statement to the newspaper, McClave said:

“I am a part of this community. I plan to remain a part of this community. I plan to continue to provide health care in Bandon. I am working to create a long-term, sustainable clinic system for Bandon. I also plan to honor my commitment to medical mission work sometime in the future, while remaining a part of the new health care system in Bandon.”

Wathen said he still hadn’t been able to talk with McClave, but the board apparently needs to “reassess our position” about recruiting a replacement.

According to Wathen, McClave had been on a leave of absence, which ended on Sept. 9.

If a new physician is recruited, about $20,000 of the $300,000 would be used to pay the recruiters. The remainder would cover the physician’s salary for two years plus moving expenses and the other costs of helping a new doctor set up a private practice, Wathen said.

Dr. Greg Aitchison, a member of the hospital board, said he would prefer to keep the money for other needs and not to spend it to recruit a new doctor if it is unnecessary.

According to Rollins, of the proceeds received from the sale of Ocean View Care Center, almost $1 million has been used to pay back loans from other district entities, to pay off outstanding debts and also as severance pay for the laid-off employees.

Rollins said that another portion has been used to augment operations, especially over the past year, when the hospital was without a surgeon and had reduced activity. This has helped the hospital avoid laying off staff, he noted.

Rollins also said that more than $300,000 has been used for recruiting.

Though McClave apparently is staying, another local physician is leaving. Wathen said Dr. James Springer will leave his practice by the end of 2008. Pete Johnson, CEO of the North Bend Medical Center, has confirmed that Springer will move to a new position in Idaho. NBMC is advertising the position.