UPDATED:New tax measure talk of the town: Cal Mtg. and KVHD

Uncle Tim and Uncle Chet want you, but mostly your money

The news is out, the first item in the latest strategic plan is the very thing that KVHD administrators and board members don't like to talk about...your money becoming their money...taxes.

The 2010 Measure G, fell like a rock in the election under the pressure of a failing economy as hospital administrators quickly threw together a 20 million dollar GOB without notifying the community until late in the election year or having solid plans to share with people who had questions.

It probably didn't help that also in August of 2010, CEO Tim McGlew, took a raise while employees salaries were frozen, then they came to the community for more money which was to put on a new ER with radiology. McGlew is also the highest paid CEO to date, coming into a 25 bed acute care hospital, at over 200K dollars, annually, with two raises in two years, and two defaults in two years.

(How would that justify a merit raise which should be the standard in the industry using practical as well as ethical policies when paying its hired help?)

It's the Government's fault: they are government

CFO, Chet Beedle has been relieved to blame the on-going hospital financial problems on the current recession, but anyone with a knowledge of the district's history, knows this started 25 years ago when the district borrowed against valley property owners taxes to expand the hospital.

They sold bonds. Revenue bonds.

And those who know the history also understand that excuses and scapegoating are almost what they do best at KVHD.

The original sin

The expansion deal of 1986, as we know, went bad, and we paid twice as much and only built half the construction project. Do your math. You will need to add a lot of zeros, but this cost not only money, but the quality of healthcare in the valley. The ability keep up with rapidly changing technology. The inability to keep and retain quality and community requested services.

It also left them antiquated, with equipment such as PHACO machines for cataract surgery, and cardiac equipment purchased by the KVHD Hospital Foundation, stored away, not put to use, though I'm sure it was depreciated.

Hard to believe, but we had two PHACO units, and one was stored in the closet of a chiropractor for several years until he asked them to remove it. (The lack of sense and continuity in their spending is outrageous, we have barely touched on it yet)

Why should you care?

This is your debt. If you own property within the boundaries of the Kern Valley Healthcare District: you own that debt. If the hospital stops existing and paying that debt, you will begin paying that debt. Ask the residents of Concord or Pittsburgh, California, as they are finally nearing the end of paying state creditor with the office of statewide healthcare planning and development, OSHPD, our friends and anchor, CAL MTG.

The reason for my redundancy on this issue, is that many residents do not understand that they are the debt holders. When the hospital added another 6.8 million this year, I did not hear anyone flinch, when they apparently "agreed" with the district to go forward with this "Beedle deal," and encumber themselves further.

But that's not the whole story: The GOB and the new debt reserve/ not a loan though

Board Counsel, Scott Nave wrote to me shortly after I sought information from Cal Mtg. regarding the latest encumbrance, 6.8 million you and your family and future offspring recently spent.

There is a serious conflict in this area, where Mr. Nave, of Leimeux and Oneill, and the legal counsel for Cal Mtg., Don Morey, have completely different stories regarding this latest financial venture created by CFO, Chet Beedle, who has his own story, as well as CEO, Tim McGlew.

What happened to our rights?

In an effort to understand the deal, as the timing was shortly before the board voted to allow the community to hear information from another attorney, David Weinstein, who was to speak regarding all the options the district might have concerning negotiating with debt insurer, Cal Mtg. or the viability of bankruptcy, etc.

Weinstein's visit, which was solely informational, and cost less than the seat warmers in KVHD CEO, Tim McGlew's Jaguar convertible, should have been accessible prior to the decision to go forward with another "quasi-financial" deal with Cal Mtg.

But as everything KVHD, they continue to prowl at night, creating business plans that go to financial institutions without board approval, offering tax dollars to gain approval for extra money on their line of credit, holding off anyone who might know more than the CFO or have ties to others that are benefiting from these illegal and unethical practices.

Mr. Weinstein came to the valley, he spoke for 3 hours, but that was after the CFO, and CEO, had safely sealed the latest stop gap agreement for 6.8 million which would have changed the information he would be giving as we asked for information prior to any more spending. And the board voted for it.

You likely didn't hear about the options, as the local media, actually, refused to take the information or cover the story. Ask Sue Barr of the Kern Valley Sun Newspaper or call for a video copy.

So who do we believe?

Okay, two attorneys, a CFO and a CEO, walk into a bar, the first one says...I apologize, but this is a joke, to have to constantly juggle all the different answers that should be simple and straightforward.

As I said, the first item on the new strategic plan is to begin the campaign for another general obligation bond, GOB, that is collected in property taxes from residents of the valley. The bond CANNOT be used to pay the debt, but somehow I believe they will "funge it."

Nave responds in an email:

The District has not eliminated a general obligation bond from future plans. In fact, it was one of the first items in the strategic plan. Cal Mortgage is aware of and, to our knowledge, in concurrence with this plan
But Cal Mtg. said they were clearing up the confusion:
I hope this clears up any confusion surrounding the current situation between the District and the Office. The intent and effect of this plan should be to increase Medicare and Medi-Cal cost reimbursements to the District and lower overall costs, particularly in the short run, to allow the District to implement steps to increase revenue and reduce expenses.

This will result in more time and money which the District can use to improve services, make capital improvements and generate sufficient revenue to support the District’s medical services without the necessity of a general obligation bond measure.

Don Morey

What we have here is one story from KVHD that they are in sync with Cal Mtg. and all believe they should go forward with a tax hike next year.

But as Cal Mtg. responded above, they gave them this last bit of crumbs, to avoid having to overburden this valley with a GOB...so they say.

We're playing hot potato with this

Now, on January 5, 2011, Chet Beedle requested that Cal Mtg. make this agreement, but on December 2, 2010, the board had voted to let the community hear about ALL the financial options, which were to be presented by David Weinstein initially. We asked for this information and the board voted to go forward.

But just as in 2009, when I had asked the board and administrators, and even local government to try and negotiate some sort of deal, a deferment, anything that could stop the bleeding, again the CFO, Chet Beedle, managed to keep that from happening. Beedle and then CEO, Rick Carter, along with Bradley Armstrong, began harassing the board member in favor of attempting a solution.

It was called off, because of bullying on the KVHD end.

Just a minutes

Mr. Beedle repeatedly lied about the financial condition of the hospital on video, and in emails. The only thing Cal Mtg. has done is read the minutes from the meetings and have some secret meetings. That is why I had to protest the minutes at a board meeting, with long time administrative secretary Heidi Sage, who was not putting in my comments verbatim as I had requested.

The film is rather funny, as the board members argued with me that I could NOT pull the minutes from the agenda, as they didn't even know the meeting basics. I guess that is what the board attorney Scott Nave is being paid the big bucks for.

But they also lied to Cal Mtg.

In a series of emails beginning in November of 2009, between KVHD CFO, CEO, and Cal Mtg. case manager, Mabel Chan, it becomes clear that the administration was hiding the dire situation occurring financially from both the community and their insurer.

Beedle was attempting to get a total of one million for his operational line of credit, but was being turned down. He offered up the fact that the bank who would fork over the full million would also get to manage the GOB monies he told Chan that our community was supporting at that time...Feb/March 2010. He said they had 80% support.

According to CEO, Tim McGlew, in an email dated April 2010, they had not done a survey as I had inquired after reading the correspondence, and he was going to "look into it." I'm waiting patiently.

The defeat of the bond measure last year, showed the community has learned more about the issue and turned their backs on the district and sent them a clear message...on a billboard: NO ON MEASURE G.

The Beedle request on behalf of the district:

Here again, Cal Mtg. accepts Beedle's request for assistance as the piggy bank or AKA the debt reserve fund is depleted for the second time in just over ten years.

Yet, Cal Mtg. justifies the deal by simply saying the hospital has been struggling for last few years (it's 25 years to be accurate) and that the district is now attempting to reduce costs.

They also attempted to cut costs in 2005 which lead to an investigation into "short staffing, dehydrated patients, falsifying staffing documents and physical restraints in the nursing center."

It makes you wonder if there isn't some liability on both parties here in the elder abuse case or at any time when the hospital failed to provide proper and legal staffing.

Low rent district

The CFO had free rent for 10 years and now is paying $60 a month, is that what Cal Mtg. is talking about when they say reducing costs, because Beedle only began paying rent shortly before they admitted to the community they were in default on their debt covenant.

But again Beedle on film, told the audience at the July 2010 board meeting, that yes they were in default but received a special "waiver" from Cal Mtg. And when I asked Cal Mtg. what this waiver was about, Don Morey, said he did not know what Chet meant by a waiver.

Again, always discrepancies between the stories from Beedle and McGlew and Cal Mtg.

If you aren't confused now, you will be soon