Community member solves accounting error at hospital: KVHD under Fire

My meeting with Mr. McGlew: Community member fought to prove accounting error: What happened to HFS, the auditor, or Kern Valley Healthcare District?



Kern Valley Healthcare District Chief Financial Officer, Chester Beedle, didn't take well to the idea he had a mistake on the books, claiming there was no such thing over a period of several months last year, ignoring a local resident.

Beedle is a high paid CFO in comparison to the position in other comparable sized hospitals.

His resistance to the issue could have left 75K dollars disappearing into the fiscal year where even Rick Jackson, the "regular" and mostly overused auditor, couldn't find it.

HFS, Rick Jackson, Cal Mtg. working with the wrong numbers

Then the question becomes even more strange, as HFS, was in the hospital to do a report which was supposed to help KVHD through another "default' with debt insurer, Cal Mtg., yet they did NOT find the missing monies.

The HFS engagement as they call it was derailed as the company was heavily criticized by board member, hospitalist, Dr. Robert Goss DO, who said they had left "giant holes" in their report.

HFS missed the 75K dollar accounting error, which would put the figures they gathered for the report...umm, 75 thousand dollars off. Would that money have thrown off their report, and the giant hole, was made of this figure?

During the time frame May 2010 to November 2010, HFS was in the books looking around, and auditor Rick Jackson, also had the numbers, but it was not the "professionals" that brought out the mistakes: it was a woman in the community who simply began reading the KVHD financials.

I do believe this woman deserves a finder's fee, as that money would be long gone had she not persisted, trying to get around the CFO's claims that there were no mistakes on his books. (so then it wasn't a mistake?)

After months of effort to be heard on her discovery in the financials, she met with KVHD CEO, Tim McGlew, who said to her after five months, that he had "discovered" the mistake.

The meeting is on video below, showing clearly, that McGlew waited for months, and then suddenly, "Oh, my God" he exclaims, he had found it the night before.

In the community they do not trust


Certain board members and CFO smirked and ignored the woman's claim as I'm sure they thought there could be no way someone might be "alert" as she wasn't paid she just happened to enjoy reading the financials. (I missed the error too, it was hidden behind that million dollar dinosaur we call the "old debt.")

Dr. Gross, DO, formerly the chairman of the Finance Committee never even asked that it be considered. Yep, "formerly" chairman of the Finance committee.

There was no effort for five months to find this error, or to even consider that they could have made a boo boo. The Chairwoman of the board did not even ask that it be looked into, as Victoria Alwin, spends more time with her three minute egg timer trying to control public input as the board has repeatedly complained that meetings run long.

You would think there were enough "eyes" to catch this 75K salmon swimming up river, but apparently these eyes need glasses or we need to hire on or say vote in a whole different type of board: one that is open and one that can add.

75K minus 144


During the way overdue meeting, Tim McGlew, explains he had suddenly found the error the night before: Of course this was several months after the woman persisted in her contention there was a 75K dollar "problem."

She complained at the meeting in front of the board members who had the same documents in front of them as the mathematically superior resident and if there was ambition to understand the books, the board members could have, I mean, should have, done their math.

Instead of backing down, she made a call to Chet Beedle the numbers wizard, and reported she had been told there was no mistake and not to call again. Then he humbly, "positively" hung up on her.

Next was Heidi Sage, as a visit was made, in an effort to help, and the woman claims to have been berated and escorted out.

(Now I agree with McGlew, "Oh my God." )




"I told them they need to own up to their mistakes: Tim McGlew KVHD CEO. Then he blamed it on Barbara Figeuroa, the KVHD controller, who always remains in control as she seems to always be the one they turn to when they need to explain away some error.

On the video you will hear McGlew defending Chet Beedle, but pointing the finger at "Hidey Sage."

Just to remind Mr. McGlew that he is the CEO, who should have taken it upon himself to follow his own words he used when I suggested we sell or lease the hospital as a solution to the debt or option in lieu of Measure G: "...that would take away the input of the community."

Obviously, that is a cursory response, as he didn't follow his own advice when he allowed this financial error to be overlooked, I imagine if McGlew can drive a Jaguar, he can afford a good calculator. Why didn't he catch the error or any of them?

I'm now sure this woman deserves a "finders fee" and I'm going to suggest that she at least be given 1% of the money which would have gotten away....

KHVD under Fire contributor: Advice from a patient

Bad experience: no recourse

I have this best nurse, she has helped me so much, she's my friend and customer, and she gave me some advice you can take or not.

No names, but she told me you don't tell this community about all your issues or nobody will help you. The doctors and nurses stick together and they will lie.

She is the hardest working nurse I know, she's one of the smartest people I know. I respect her so when she told me not to report a molestation by a doctor I got mad real mad.

I felt like a victim, she's wrong and you don't report it they walk all over you, and that ain't okay. But I got to have a doctor, I have a lot to live for, I want to be here with my grand babies.

I know if I speak up I won't be able to get healthcare.

My husband agreed that if we stay here we can't let our business out for everyone to know in this small town where they talk about us. We decided to complain to the nurse board because theres no choices around here we thought it would be safer this way.

We gave the state board our complaint two years ago then no kidding we got a letter 3 days ago. That made me want to write this to our valley.

What took all these years to type a stupid letter only backed the doctor saying they did nothing wrong. My friend hit the nose that they protect each other, and the state board what a fake.

Our family planned on retiring here around the lake, but if we do we have to shut our mouths about what happened.

It's a crappy feeling being afraid to tell anyone but our advice is to be picky picky picky when you look for a doctor. When we had to change doctors we did it by asking around I even talked to the staff. We feel lucky it is worth the drive to feel safe again.

Complaints are the answer

Laura Hart here...

I've heard so many stories over the last five years I've had dealings with the Kern Valley Healthcare District, that I will continue to urge this community to take back its hospital district, its tax money, until there are measures taken to satisfy all safety, HIPAA, requirements and even a "drop" of quality to bring it back together.

The more complaints I receive, the more chances this community has to recover it's healthcare district and make it into something that has transparency in all it's financial dealings, leading to proper staffing, level salaries, and even a neighborly atmosphere.

Sadly, this story hit me as it is so typical of what I have encountered since I began investigating this district. FEAR.

What did they do with all the complaints I sent?

In a question to the hospital about how they handle complaints and grievances, where the information goes, to who or what, I was rather unhappy with the answer and will pursue this information further.

I expected to hear about a clear and fair playing field, where complaints aren't always promises which never manifest, where investigations actually take place with data to provide information and the response was that most of our complaints hit the round file unless you're ready to move into a court room and likely lose the battle.

So, when CNO, Mark Gordon, glows about his few patient surveys, he is not talking about all the material, because they are not tracking it I found out. They seem to have lost pictures a woman sent to me with a complaint as there were used syringes on the floor under her daughters gurney in the ER.

And when I asked Michael Philps the strategic planner who rode up the mountain on his SHIP to impart his knowledge of KVHD's future, he expressed that in his sessions with the community he wanted ONLY positive comments.

We just read a story about a woman who is afraid to complain, yet that is the answer to actually creating solutions. If we had no problems we wouldn't need Mr. Philps, therefore, any information derived from this type of selective surveying, is useless.

But we need more people to step forward. Until there is significant support and a plan of action on the part of the community, I will keep all correspondence anonymous unless directed to reveal your names.

White collar crime

Well, if anyone should be able to tell both sides of this mountain hospital drama, politics and medicine, it would be me. However, it would have been over and done, possibly solved problems, had there been more complaints and more voices.

But the author of the story is correct, she has a small town to live in, and only one hospital, planned on living rural, and if she wrote a letter to the editor with her name, exposing her situation, immediately she would be a healthcare pariah, along with her family.

The employees of the hospital who have known the activities of this district for a decade or so, have followed the KRV staple, "don't ask, don't tell." It's common in white collar crime situations for people to use the excuse, "I was only following orders."

I have not completely done all the research on the ROC laws, but their intent is to keep people from saying just that: "I didn't know." The government has chipped away at the rights of patients, creating caps on lawsuits, obviously the California oversight needs a serious optometrist, and this makes it "dangerous for patients."

These laws are interesting, but they are not the only ones the feds or the California AG could have used to clean house so that there was a chance of survival, which is waning. These are the same people in charge of the new "healthcare reform" which means if they can't reform a small, rural, unsafe hospital, then we can expect widespread failure in the coming years.

Put the board on the stand

In an ironic way this hospital and community had a chance to make great changes to this district when the 2007 elder abuse case came to light. Had there been interest from law enforcement, or maybe our current Governor who has a penchant for penny pinching, we could have taken action.

There could have been a way to charge more people such as nurses who knew the situation at the nursing center, but again didn't want to lose that $10 an hour job, over an elderly persons health.

Nurses went out on stress leave and somehow got away from this case, yet they were the very ones overseeing the situation, daily. One nurse, of course, was the mother of a long time employee, so she hit the road before the storm, as I'm sure she was notified.

Employees lied to the DOJ, and a few even admitted it. But then that was probably not included in the Public relations releases from Sacramento.

And we all know three members of that board colluded and obstructed the investigation while letting the former CEO, Pam Ott, who had diploma mill credentials, go off to Sierra Kings in Reedley and take them down the road to bankruptcy.

Sierra Kings survived: they voted

As KVHD hits the skids, unable to make debt payments on their "new and improved" 6.8 million dollar loan (but they say it's not a loan even though we pay interest and borrow money?) there is much to be discovered as to how we can "force" proper healthcare in this valley.

While Ott is alleged to have managed to get into the GOB the Reedley taxpayers paid for expansion, and also the employee pension fund which cost some people their retirement, the Kern Valley Health Care district allowed her to walk away from a serious situation and knowingly put another community in jeopardy.

But the fighters in Reedly, unlike the divisive KRV, came together and found a way out, and now in the last two years while KVHD CEO, Tim McGlew, and CFO, Chet Beedle, were street peddling for local tax dollars, they went thru a bankruptcy and leased their hospital and are open for business.

And together they saved healthcare for their residents.

I need your complaints and have sympathy, actually more empathy, for all who have had to endure the lack of quality, safety, defamation, negligence and improper billing practices.

There are many solutions to these problems, but when you see the same mediocre practices, lack of vision (due to a crystal ball shortage they say) for the future, and little or no true communication with the people of this valley, the only way out is actually using this democracy to take action. (yes, we need instructions)

So, I'm going over the "stratragic" planning plan, that looks awfully familiar, like all the others we paid for, and I will bring up the options, ALL the options, we have if we intend to create quality healthcare in this valley.

The only way is to unite, stay away from petty differences, and mull over the true options, we the debt holders of the district, meaning we are the owners in every sense, have an obligation to each other in terms of taking responsibility for this mess.

Critical Access Hospital Network CCAHN Strategic Plan 2010-2011

Draft – CCAHN 2010-2011 Strategic Plan. By MJ Philps & Associates January 29 ...

http://www.ccahn.org/sites/main/files/file-attachments/CCAHN_Stragegic_Plan_DRAFT_2010-2011.pdf

KVHD News: State Medical board rules on Dr. Hoshang Pormir

The State Medical Board in action

According to the Medical board of California, former Kern Valley Healthcare District physician, Dr. Hoshang Pormir, currently charged in the hospital's elder abuse case, has had a ruling in his case with the state's investigation into negligence involved with the nursing center at the rural hospital during 2006 and 2007.

Documents from the Medical Board show that Pormir has been given two years probation and limits on his scope of practice such as having a "solo practice" or working with the elderly, were amongst his limitations.

http://www2.mbc.ca.gov/LicenseLookupSystem/PhysicianSurgeon/document.aspx?path=\DIDOCS\20110815\DMRAAADE2\&did=AAADE110815170725193.DID&licenseType=A&licenseNumber=49827

What about the elder abuse trial?

With the quietly revealed probation and restrictions on one of the three defendants in the KVHD elder abuse case, we still have a trial date for March 12, 2012, at the Kern County Superior court.

Not that a plea bargain can't be reached, as they sometimes wait until the very last moment to cut a deal and avoid a trial which could be a greater risk than taking a lesser sentence.

As of the last reports, Dr. Pormir, along with fellow defendants, former KVHD CEO, Pamela Ott, and the former Director of Nursing, Gwen Hughes, still face criminal charges as well as civil cases waiting in the wings as this case may be overshadowed by new cases coming to light out of the public healthcare district.

With a growing list of cases against the hospital in civil court, and several cases emanating from the skilled nursing facility mismanagement, KVHD faces great financial losses in the coming months and years, which could turn out to be the death knell for the ailing hospital.

The community has recently been alerted that the first thing on KVHD's list of "stratragic" planning which was revealed at a special meeting so the community to join in, has a new tax measure at the top of the list.

More vanilla ice cream and a community that is expected to pull the hospital out of debt, which may be impossible with the upcoming legal cases. A letter to the editor of the Kern Valley Sun Newspaper from a former KVHD backer, and a long time volunteer, was turned down by the hospital as she fell after a meeting and broke her teeth.

The angry sounding letter, seemed more disappointed than anything else, but it seems the hospital can dish it out, but won't pay for it, and according to the author, asked that her dentist give a discount.

With the hospital unable to make its monthly payments to debt insurer, Cal Mtg., they stagger on with ideas which would have worked years ago, but with no circumspection, the hospital faces major hurdles, and one of which is convincing unhappy customers to come back to a hospital which cannot provide worthy or adequate healthcare. And then pay some more property taxes too.

Who is William H. Ginsburg?

After a few reactions to the Medical boards' decision with Dr. Pormir, most were shocked by the seemingly "light penalty" which includes a 40 hour course and payment for the classes.

But Dr. Pormir, who has had several different attorneys since the elder abuse charges were brought against him, one being Donald Etra, somewhat famous for his work with celebrities, and his visit with George Bush in the White House.

However, the attorney who is listed as handling the Medical board case, is William Howard Ginsburg, someone sounding familiar, but most don't remember that a young, Monica Lewinsky, and a President, Ginsburg was handling Lewinsky.

These are big attorneys who have been around and know the right people, and so far, this is the first of the cases being handled by the state agency, Consumer rights, Nursing board, so there will be more information to come soon.

Dr. Pormir still has some mountains to climb, but it seems he is being helped by some top notch attorneys, though he has recently had to change to another attorney, financial problems being the reason, he still must face elder abuse charges.

Hughes was first to bankrupt, as the hospital's liability insurance does not cover criminal matters, and then Pormir and Ott claimed hardship and have been assigned attorneys by the court, while Hughes has a public defender.

With money short for years at KVHD, since the late 1980's when they failed to complete an expansion, and have had an anchor around their credit for 22 plus years. However, the actual costs will never be accounted for in anyway, be it the patients who were mistreated or harmed, the suspicious deaths, the management company costs, the losses to overpriced contractors, the contract with debt insurer Cal Mtg. which keeps costing more and doing nothing.

Why did HFS come in to help with a default, chosen by KVHD CFO, Chet Beedle, and then they are not finished with the job, because as board member, Dr. Gross DO, claimed they left "giant holes" in the report which were corrected by the CFO in the finance committee? What was the point of spending more, as these pennies have added up to millions, and this debt is owned by the community.

You do have power but you have to care

But there are several things this community could do to take back this hospital district and we will discuss this shortly.

We could vote a tax for the hospital, but then they haven't exactly helped us, so that may not be the answer. We don't know where the money goes, the community had to catch a 75K error: what's wrong with that picture?

We could also vote out the whole district and start over. We could also vote to take our tax money back from the district until they clean out the parasitic practices and conflict of interest.

There's oversight that the county of Kern could have sent in a long time ago, assigned someone to the hospital. No, we have seen no action on the part of the county or it's representatives to shift control so that there is transparency finally forced on the part of KVHD and it's partner, Cal Mtg.

What do you want to do? Class action lawsuit? Bring in the feds to use the much underused, ROC laws, also known as the "should have known" laws. This would bring the mice out of the woodwork, the employees too frightened to lose their jobs would have to speak up or be charged as they "should have known."

Just a thought, what about you, have any thoughts?

Former Auxiliary President "punched in teeth" by KVHD? No support from CEO, shocking...

Auxiliary: Giving support, serving as an aid, helpful. (Also, used as a "reserve" in case of need)

Sadly, I received a few phone calls referring me to a letter to the editor in the Kern Valley Sun Newspaper this week. I saw the name, I know this person, and she and I have only agreed on one thing: the auxiliary has used their time and energy to keep the hospital going and after all these years of service, they have kept it going on the volunteer pay scale, free.

You see without the auxiliary there would be no hospital right now. It was parasitically run dry starting in 1986, continuing thru this year when the administrators went ahead and remained the "band of brothers" with Cal Mtg. the insurer of a great big "giant" debt, and took more money under what seems to be false pretenses...(coming soon)

Where does the money come from?

The driving force behind the hospital is the auxiliary and the Hospital Foundation who have been volunteering and donating, truly backing the hospital...As I said the auxiliary runs a thrift store which continues to have more profit than the hospital itself.

This time a volunteer decided not to "take one for the team."

When I ran a business, a plumbing business some may remember from previous posts, our company flooded the former Northridge Mall. We carried liability insurance, probably more than KVHD even though they deal with life and death.

The contractor expected us to pick up the bill for the damages and repairs, and after a meeting, we made a deal, and the issue was over and done.

Could I have gone pressed the issue trying to scrape a few dollars off the bill, sure, but then our reputation would be gone and no contractors want a bunch of irresponsible plumbers whose work reflects their very own survival.

That's not the way it is in medicine

This letter to the editor where this former volunteer alleges she took a fall following a "volunteer" meeting and knocked out her front teeth, is an absolute atrocity, but it's also a warning to those who go to KVHD: IF YOU ARE HARMED YOU WILL LIKELY LOSE YOUR CASE EVEN IF IT'S SIMPLY TO REPAIR DAMAGES CAUSED BY THE HOSPITAL.

In recent years the government has tried to cap damages in medical malpractice cases. They have wanted to take away what they call the "punitive damages" which are above the costs involved in the damages.

That makes this KVHD far more scary now doesn't it?

(These are a few of the cases against the Kern Valley Healthcare District. KVHD is desperately trying to avoid these costs, as it reaches a certain point, the costs are not paid by the insurer, they will become the debt of the hospital. And again, your reminder as a resident, if you don't take action, you will be paying for the debt the hospital accrues: (see your property taxes)

Lobbying and the big one: The American Medical Association

The AMA has so much power that it's difficult to even get any help, as they have opposed everything regarding patient safety and they have their people in political offices around the nation trying to make us believe they can harm us and get away with it.

But in other probably less damaging cases lawsuits hit the millions regularly.

Now if you say something sexual to a co-worker, something that would be outside the parameters most of us use in terms of work, you could get a "sexual harassment" suit against you. Say, if your supervisor said "you would be a happier person if you got laid," this would certainly be a lawsuit that could likely pay off far more than a medical malpractice case.

If you have enough evidence, pictures, witnesses, some of those sexual harassment cases have gleaned millions of dollars.

But people who complain about doctors, negligence, treatment errors, will expect to be fought every time as these court cases are expensive to try, and even more, with the "lack of honey" for the attorneys because of the monetary caps, they are not taking these cases generally unless it involves death or birth.

KVHD won't even pay for repairs?

I've been in the claim process recently with KVHD too as I have been damaged and require specialized help. I got a few letters from the KVHD CEO, Tim McGlew, that he had contacted Betagroup, that there were investigations underway I never heard another word about any of my "personal" complaints. I have heard back from other people I sent complaints in for, but not mine.

And in this sample of the letters going back and forth between the CEO and I, McGlew after having a conference call with Jim Gutzman, himself, and me, quickly dismisses Gutzman as not being affiliated with the hospital.

From what I understand, the PA finds patients in the acute care wing and hustles them over to the clinic, his boss is a board member, the KVHD hospitalist paid by the district, and the owner of Sienna Wellness Institute, but the CEO instantly separates the PA, and suggests I speak to Dr. Gross DO. How much conflict of interest is in this situation?

A McGlew email: PROMISES

Laura,

Have you attempted to contact the Pharmacy about your medication? I’m not familiar with your concern on this matter. Drugs are available from different manufacturers. Some come with scoring lines, which make them easier to cut, and other manufacturers do not. The pharmacist could tell you better.

I’m not aware of any comments that Jim Gutzman may have made to or against you. Jim is not an employee of the hospital. He is employed by Dr. Gross. If you have concerns with Jim, I would suggest you contact Dr. Gross directly.

I have contacted Beta regarding your concerns. I will see to it that you get the medical information release form sent to you. I have also asked Dr. Sacapano to review all of your concerns regarding your ED visits in December and January.

Tim

Instead, much like the author of the letter from the former auxiliary "workforce" who says she only asked for the teeth to be repaired, has been run through the mill even though she defended these people for many years, now she is doing a good job of defending herself.

(Like I warn you all: one day you're the good guy because you are a believer in the KVHD propaganda, and then suddenly you need them, and they are long gone.)

If it's true that Tim McGlew offered this woman repairs to her teeth, but expects a discount from the dentist to do it, then...you people holding these huge bills from KVHD may want to get your discount too!

We can't do it alone

I have been hammered by KVHD, others have died, some are abused, many are defamed, and yet the community does not know what to do. In the letter to the editor, the person damaged said she felt, "humiliated" she has been jumping through hoops, doing everything possible.

The reason the only way to get this hospital under control or simply lease or sell it, is like the lions and the wildebeest out on the Serengeti , the big cats isolate one target and go after it, while the rest of the pack runs off taking cover within the group.

Now the lions cannot take on a whole group of sharply horned, and frightened animals. And sometimes you will see the pack run off the lions as it's all about the numbers.

The comments under the letter to the editor were from people who obviously would turn on their own kind...cannibals. They don't want to "get involved" or "look bad" which they already do. Kudos to the author for defending her actions which only the courageous can do.

I'm researching some information that I have shared with only a few people right now, that may make you feel more powerful come next week.

With a Kern County Superior Court civil claims department showing a growing number of cases being brought against the district, it is time to realize that only way to rid ourselves of the current administrators and board members who have not lived up to their "oaths" to represent the people of this district, is to come together.

I will share with you more options next week, and before you take a single step into the KVHD ER, know that you should never be there alone, and you should take notes, take down names, try to get them to give you ALL your records and tests, demand a diagnosis, alert your primary care physician, or do the best thing: STAY SAFE AND GO TO ANY HOSPITAL OTHER THAN KVHD UNTIL THE COMMUNITY WORKS TOGETHER TO CORRECT THESE PROBLEMS.

We need volunteers

For those of us whose health has suffered due to the negligence of this hospital, and it's insurer, Cal Mtg. who has swept away the money for the future, the people who have had billing issues, those who have not received medical records in a timely fashion or at all, communication with primary and ER, late prescriptions, fraudulent billing, it's time to volunteer to send out flyers.

The research now becomes how many people have suffered, and if we come together, we DO have options. Please email me and I will send you the flyers and an information packet on your patient's rights. Thank you ahead of time.

Letter to the editor: http://www.kvsun.com/articles/2011/09/03/opinion/letters/doc4e5d33eb7babd587688931.txt

Kern County Superior Court: KVHD cases growing...

http://www.kern.courts.ca.gov/home.aspx