Kern Valley Healthcare District: California EDD local unemployment rates

Make an educated decision

What does it look like on the horizon right now in terms of unemployment within the Kern River Valley as the Kern Valley Healthcare District is desperately trying to convince voters any way possible, including marketing surveys, to pay an increase in property taxes, also known as a general obligation bond, tonight at the KVHD board of directors meeting, at 5:30 pm in the hospital cafeteria.

What will be the impact if the hospital doesn't get this community bailout?

Likely other answers will surface as we need this hospital to continue, however, not in the way it has been done in the past.

We have a criminal elder abuse case coming this month, August 20th at the Kern County Superior court. There are also civil cases by families of the patients who may have died because of a lack of staff and the use of psychotropic medications. And most definitively an inability by the hospital administration of 2006 until now, to handle the problems properly due to certain qualifications problems.

Although, according to the current administrators, CEO, Tim McGlew and CFO, Chet Beedle, there is no contingency plan and we are running out of depreciation which brings in 1.6 million annually from Medicare on the original expansion project in 1986.

Apparently, over the last 25 years, the financial administration has again made a gaffe in it's efforts to get out from under the government revenue bonds suggested by Goldman Sachs, according to Cal Mtg, a division of the California Office of Statewide Healthcare, which insures the bonds.

Taking accelerated depreciation rather than a straight line accounting method, the hospital will run out of the reimbursement, leaving them unable to pay the government bonds, even though they have not been able to maintain the payments and now are in "formal" default.

The excuses

For the past year, we have heard that the money problems were caused by the community which is, according to the administration, overusing the ER and not being properly paid. Beedle also said it had to do with people not being willing to sign forms which would or could possibly get them signed up for some hardship program which then would pay the bills.

What the community may not know is that we were supposed to have an "urgent care" walk in center which would take the burden off of our ER and Rural Health Clinic allowing people who are not completely an emergency to get help. In fact, Sienna Wellness, was to be hosting the urgent care, but without foresight, and political in fighting it never happened.

Many plans paid for with good money lay dormant not being used and now we are expected to believe that this hastily thrown together plan is something different. Let me explain.

During the campaign for measure M put on the ballot late in 2006, the previous GOB, (one of six attempts to get the community bailout as it has been the only answer researched) former CEO Pam Ott, claimed the GOB taxpayer money would be enough to cover all the expenses with putting up the new building.

At the same time Ott's second in command, Chet Beedle, said they would use the depreciation on this building to pay off the continuing cycle of debt, but not until the "special meeting" with a 24 hour notice, did we hear another reason as to why this is so crucial and urgent now.

Beedle said that the accelerated depreciation has caused them to have to risk losing on all sides, reimbursements, as it was a quick fix, that has now come to a close.

However the plans were not finished before they went on the ballot in 2006.

Former CEO, Ott and two community members, she called her "three legged stool" saw the problems with the construction project: they wouldn't work and they would cost more than was projected.

This was after the election and the GOB didn't pass, but the voters were unable to know what they were voting for and that it was too hurried and hardly developed for the future of this valley, it was to continue to pay our burden of debt made by bad decisions from the past.

But this went onto a voting ballot with laws and regulations coming from the state constitution as well as the elections laws and health and safety codes which are supposed to protect us.

It has been alleged in the Sierra Kings District hospital which gave harbor to our fleeing CEO, that Ott was able to use monies the Reedley citizens who voted on in the form of a GOB to expand their hospital for purposes other than what was on the election ballot.

Now at the last moment they are calling for help

The insurer of the bonds, Cal Mtg. a division of OSHPD, has the right according to the contract on the old debt or government revenue bonds, to remove administrators if found they are not able to function and keep the hospital afloat.

Cal Mtg. also had a clause in the contract where they were to show up and monitor this precarious situation. I have been covering the hospital for five years and never met or saw any one of the insurers oversight people. But I have seen emails between them and KVHD which may startle you.

Is it time for them to do this?

With money leaking out of every crevice at the hospital, should we, maybe a survey question, give the job to another financial company and rid ourselves of three and four year old billings?

Like Sierra Kings District Hospital now mired in bankruptcy, has been getting offers to buy or lease the facility. That would mean the administrators would likely be replaced, and I'm sure that is not what they want.

It's not up to them. Do any of you have an issue with giving a raise to a new CEO, Tim McGlew, during a crisis where they are asking us to pay for it? Though the ballot doesn't include administrative costs, it is rather odd that the hospital would go ahead and tell us finally they are in deep trouble and yet give raises to the top administrators.

Are the employees getting their raises or have some seen their hours cut and benefits discontinued over the last few years?

Our administrators don't live here in the valley

According to election laws board members must be residents of the valley to serve our needs, yet they throw that back at us like a handball, by telling us to write to our "other" representatives.

THEY ARE OUR REPRESENTATIVES, SO WRITE TO THEM AT KVHD and remind them they are elected "representatives" who have a responsibility to be this community.

Now, on the other hand the CFO lives in, I believe, Apple Valley, and was receiving housing assistance, an apartment from the hospital for a long time with, according to insiders in the hospital, (as little is left of the original accounting documents) for "free."

The CEO, McGlew chose to buy a house in Bakersfield as he could not get healthcare for his son who has special needs.

Not a big deal except they have no vested interest in this valley and they won't be paying property taxes along with the rest of us. But they are pushing it as the only alternative, and yet, there are many things to consider.

Let's start with the loss of the property owners hardship program

Up until last year, homeowners could receive monies from the state to supplement their property taxes if they are disabled or on a fixed income. This could have helped them off set costs on their taxes if such a bond were to be passed during this years election. However, the state is quite unlikely to restart the program, as they are pinching pennies and pitching dollars to those with more influence.

Seniors are certainly and thankfully involved in communities and politics, but the disabled have little or no choices, and through no fault of their own have had no representation, because they don't have election dollars to buy their way, and being injured and ill sometimes cannot travel or rally or basically lobby.

So, the cruelty is that the weakest are being treated the worst as they aren't being represented. But I have some iideas on that.

If property taxes do rise, we will see if this community can survive the biggest financial blow since the oil and gas prices shot up like fireworks reminding us that everything is attached to fuel and therefore it will all go up, including food.

Cal Water, has received two price increases from the Public Utilities Commission which may cause more than just another inflated bill: it may cause people to use less water making the territory surrounding their houses more prone to fire.

Edison has been increasing quickly as I have had a regular amount I paid up until this year.

With all these cost increases, and no new employment expansion plans for the valley, this bond could become the catalyst that finally overburdens the community.

Cal Mtg. was able to get their increases for what people call, "the worst water I have ever drank" from the state and threw the burden right on top of a "fire prone" area.

We didn't have a vote on that, they basically just took it. But we do have a vote on the hospital, and we might consider holding that off until true options can be explored.

Could they have missed something as they threw this together to make the deadline for the November ballot.

Finally who are employed these days with extra money?

The EDD figures from last month showed a serious problem with unemployment in the county of Kern which is at 15.7% as the whole state is lower, but not good at 12.7%.

Now, the local numbers are even more drastic as Lake Isabella is at 18.5%, Mt. Mesa home of the hospital is 20.1%.

These figures are based on available jobs, unemployment assistance filings, as well as several other factors. What isn't factored in is the fact that in this small area, people who are desperately looking for work, complain they have to "know somebody" to get a job

The numbers also do not include people who have had to take part time jobs or who have lost their healthcare benefits, so you might want to think about how these statistics are compiled and compare that to a recent survey conducted by a company working for the Bond company Caldwell Flores and Winters who are gathering "statistics" for the hospital district in hope of justifying putting a tax increase on the ballot. . (I've received a lot of calls from people throughout the community and it seems the script changed and many people told me different stories as to the questions that were asked. I myself, a registered voter, and listed in the phone book, not unsurprisingly never was called regarding the hospital's $15,000 survey.)

Even worse are the statistics from the surrounding communities as Weldon is at 32% and topping the list is Onyx at 36.8%. Wofford Heights is only 15% while Kernville, recently hit with a fire which destroyed homes and property, is the lowest at 2.7%.

Kernville will continue to have to pay for the upgrades to the Kernville Elementary School via a GOB they voted in on their property taxes, but the school is most likely going to close down. That doesn't mean the citizens who voted this bond in will not have to continue to pay it off.

Same with the hospital.

And if and when the school closes, the unemployment rates will climb too.

If for some reason, even with more money from the GOB which is scheduled in a series of four payments, along with a two million dollar loan at interest rates calculated by Caldwell Flores and Winters which will be between 6.5 and 7%, and a partial payment on the old debt, if the hospital does not manage to do this, we will be like Kernville stuck paying this off.

So, before you vote, think about this, unlike the hospital, get good information, and take your time to look at both sides of the issue.

KVHD Board of Directors meeting tonight at 5:30 pm in the hospital cafeteria. The agenda is posted on the blog.