Response and my response, Cal Mortgage

Dear Don:

I wanted to let you know that something has to be done to this debt the hospital owes. It was a bad loan and now it may have lead to understaffing, hiring of unqualified or suspicious people, who worked in the Skilled nursing facility and apparently killed and tortured people.

My work now is going to all the state representatives and telling them what has happened and have them investigate how this hospital managed this loan in the first place.

Let's start talking bailout. I'm sick I need my hospital. But I don't want to be injured or die there, because they can't afford the proper equipment or are able to retain qualified staff.

I realize that it's not your business to forgive and forget, as Cal mtg. has taken down districts that couldn't pay back the terrible loan program. I've done my investigating.

But it's time to find a way to get the hospital out of the hole. How can we do this?

Thank you, Laura Hart


----- Original Message -----
From: Don Morey
To: Laura Hart
Subject: Re: what the debt has done to the KVHD hospital...

Laura:

I received your message Thursday afternoon. We were on unpaid furlough Friday, February 20, so this is my first chance to respond. By way of personal comment, let me say that I like the new look you have given to your blog.

It looks like the investigation begun two years ago by the Department of Public Health which then resulted in the hospital being placed on “Immediate Jeopardy” status, has now led to criminal prosecutions. We understand that DPH has now determined that KVHD is in operational compliance with state mandated levels of care and staffing; although periodic reviews by consultants are continuing. While this period has been one of financial stress, KVHD has returned to a position of positive operating revenues. That it has been able to weather this storm without missing payments on its long term debt, is an indication that KVHD can meet the financial obligations to bondholders which are guaranteed by the Cal-Mortgage Loan Insurance Program and backed by the taxpayers of the State of California.

Don M

Dear Mr. Morey:

I’m so very glad that we can accommodate your payments. However, it is more like saying you have a car, that runs, but only in one gear, and you don’t have the money to fix it. So, it's not really doing it's job. But you have to make payments anyway.

What about all the problems that need to be addressed. The ER is a disaster, with flooding and understaffing.

They have to retrofit the acute care wing as well, because of state seismic regulations.

And we have to pay some substantial raises to our administrative staff apparently. Though you get unpaid furloughs, they get more money.

The skilled nursing disaster still needs help and we both know it. Ex-employees are fleeing the SNF or they are on stress leave. In the last 3 years, apparently, the hospital is making everyone crazy.

I could go on, but you get my point.

As far as weathering the storm, that would not necessarily be accurate. And the storm clouds have gathered again. And will always until this hospital has enough money to afford to do what makes a hospital perform up to standards and really, hopefully, beyond.

That hospital is not even worth 15 million dollars. We could put a “for free” sign on the building and nobody would take it. So, how do you even justify the first loan, then a second loan, and then kicking out managers and bringing on unqualified managers. Remember Brim?

I say it was bad lending and bad oversight and a bad debt that you should allow this hospital to bankrupt on.

When I see the covenant, I’ll know how much of a strangle hold you actually have.

Responsibility is not what government agencies like to take. My favorite quote and now experience, is “Bureaucracy is the modern form of despotism.” Unknown.

Please, speak to your superiors, and begin an investigation into this loan. The original bond, the second bond, and the refinance.

I wouldn’t loan that hospital my library card. I saw the audit, we will get to that very soon.

Take care and don’t take it personally, Laura Hart