The KVHD administration has been talking about putting a general obligation bond on the ballot to pay off the debt, but what they haven't spoken about was they knew this was coming and waited for some now understood reason to act.
A GOB is not a new idea as you will see in the last document, it's been here many times before including Measure M in 2006.
Even Measure M as I mistakenly touted as completely necessary, was to be used to build an addition to the existing structure and utilize the depreciation to pay off what is called the "long term" debt.
The debt itself was a huge mistake on the part of possibly Goldman Sachs, but most assuredly on the hospital board of the time, which was 1985. Imagine this hospital putting out 22 million in bonds that can't be bankrupted and then they could not even finish the construction project this money was to be used for. The nursing center is half the size, so therefore, half the revenue projected.
Now they want 20 million from the community and they are somehow with less than the original debt, be able to pay off the first mistake and build a new ER and remodel an "imaging" center, which would be radiology.
But we have, according, to our CEO, Tim McGlew, and CFO, Chet Beedle no other options at this time.
Well, let's begin.
We knew a year ago January there were problems. I knew. But yet the person who is paid good money to keep this hospital functioning and safe, Beedle, for some odd reason didn't want to address the issue head on with our insurer.
After gathering support from KVHD chairwoman, Kathryn Knight, and Assemblywoman, Jean Fuller, to go to Cal Mtg. and simply ask what are our options, how can we solve these problems, can we defer payments, it was suddenly cancelled. (see email)
There was some bullying or as they like to call it here, politics, and nothing happened. No answers were given, no explanation provided.
Yet Beedle had 19 months to financially "manage" this hospital. Now the only solution that has been allowed to be discussed is the property taxes. A short message on bankruptcy was touched upon, and a parcel tax was considered, and there it ended: until now.
As I discussed in the previous blog (KVHD is not only hospital waivering) the problems with debt and spending are nothing new, but we heard some new excuses at the meeting which need to be addressed.
(click on documents to open, hit back button to close)
Millions of dollars have been lost out of the surgery department, salaries paid to a surgeon, nurses, and anesthetists, and what sorts of numbers do we see in this document: one, two and all the way up to five.
At the board meeting nobody, including the person in charge of the finances, CFO, Chet Beedle wanted to give a reasonable answer or explanation. They laughed basically and left it at that. (video coming soon)
Do you think those numbers are funny?
Look for yourselves.
Another issue came up regarding billings for co-payments from two years ago and financial manager, Beedle, answered by telling the community that by delaying their billings it was his effort to "help the community."
Old business is right, as you can see we have been talking about billing issues for a long time too, earlier than the document shows, I assure you.
But most know around town how bad the billing situation has been, they have been getting unknown bills. Accounts receivable is money you want to collect as soon as possible as people move or die or lose their jobs, and to say something as ludicrous as this was intentionally done to help the community only creates more of a rift between the hospital and it's voters for a bailout, AKA GOB.
And then there's the issue I'm still exploring as to why in January of 2009, the board knew there were serious problems, of course Beedle did too, but only one board member and one representative took the chance to try and address the problems that were already there. It was a meeting with the insurer of the large debt burden to try and find a way to stay afloat. (look under Cal Mtg. proposition)
If you're thinking right now that the insurer, Cal Mtg. in the Office of Statewide Health Planning and Development, should just pay our debt and that's it, then you need to understand that they don't do that. They are different. And we signed a wonderful contract binding the community's property to the debt.
There is no bankruptcy for the long term debt. Not that there couldn't be bargains, and negotiations by people who know how to do these things, not those who just say they can.
So we see clearly that decisions made with a board stamp, a consent agenda, have wrecked havoc on this district, and yet we are seeing nothing more than the same soup served up again and again for answers. It shows that time and care need to be taken especially at this particular time.
I would not be saying these things if there weren't sufficient evidence to "prove it" and the board had better prove it has been using due diligence when making decisions.
This new GOB has been thrown together like scrambled eggs and toast so far, much like they did in 2006, as the architectural plans were unfairly put forth on a "voting ballot" as usable. It turned out those plans were not even close to being able to come in within cost, but even more egregious, they were unusable and we paid good money to Aspen Street Architects for many years for nothing.
Final document, shows we have been here before, many times, but this is particularly interesting as this was during the time BRIM management who gave us both CFO Chet Beedle and former CEO, Pam Ott, that the insurer has on it's list of options, that GOB.
Now, here's the email I received saying there would be no meeting with the insurer as we don't have to do anything, and the board was looking into it. When has this board here and now, with one exception, Kay Knight, asked any hard questions about what we are doing?
They are our representatives in healthcare. They decided to run for the board. They took on the responsibility on their own accord.
All I have heard are parrots over there, and not people with time and effort to go through the process called, "due diligence."
(these emails were the end of the attempt to address a bad situation before it got worse to the point of a bail out, rather than upgrading services, arranging an urgent care, and looking at potential architectural plans. Look at the dates and times as Beedle, having been directly asked by chairwoman Kay Knight for a meeting, denies it in these emails below. It goes backwards, the time frame, so the initial statement is the cancellation. And note the board never did again address the problem. So what's the problem? )
This would not be a good time to vote on this proposal. We should allow it more time to accumulate more imput so the Board can give the decision an educated decision. Thank you for your input and your inspiration.
----- Original Message -----
From: Laura Hart
To: Beedle, Chet
Sent: Tuesday, March 10, 2009 12:57 PM
Subject: Re: Cal Mtg Proposal
Hello Chet:
Once the board votes to go into negotiations with Cal Mtg. then the proposal from KVHD would then, it would seem, be discussed and be more specifically written.
At this point, Cal Mtg. needs to get their people together and begin the process at their end. They know basically what this hospital needs to succeed and survive. And they know we don't have it.
And they have known this for a long time. I remember three years ago the hospital was purchasing a PAC system, for 80K. It was reconditioned, but what ever came of it? Now we're just dipping our toes into a digital radiology system.
Where is the true plan for expansion? What will it cost to keep up?
Which makes me wonder again, about the agency itself. From what I've read they are there to help keep rural hospitals growing and properly serving their respective communities.
One doctor who is currently under indictment, said that the ER is antiquated and he can't get doctors or staff to work up here.
And because of the looming indictments hanging over the hospital, with potential lawsuits, there is a sense of urgency to get this matter handled.
I'm assuming again that you yourself realize this.
Other issues of note that bring about urgency and fair play in this matter would be the needs of the hospital itself. The technology that you need. The structural repairs and additions. But more importantly a new plan for the skilled nursing facility.
Not just a note to public: it smells good in there. Nice murals. That doesn't work when people have died under suspicious circumstances. And these people live in this community. And these people are not getting complete medical records.
And local employees are being ignored by the largest employer in the valley.
We apparently have a truck load of rental nurses coming from Alabama or somewhere because of the staffing issues.
We can do better than this can't we? Or do you think this is the epitome of success for this hospital? I'm just wondering at this point.
Politics being played at this juncture will not help this hospital, the people and the valley. We have a reality to face and we need to do it. This is about elected officials, oversight agencies, the administration, and the public doing a good job. It's about new viewpoints, new avenues, new ideas, and new people.
This board needs to move forward, vote on the negotiations from this end, and Assemblywoman Fuller will then by order of the board begin the inroads for negotiations with Cal Mtg.
Other representatives of this valley, this district, the state can and will be utilized as well.
We need to learn from our mistakes and not hide from them; make things better by getting a clean start; and acting responsibly by taking action to get this done.
This is the first step.
And one of your employees, wrote on the Kern Valley Sun blog, that if people don't like the hospital they can drive down the canyon bleeding.
Another remark involved tearing down the hospital and creating an urgent care. Take a look it's coming from your management.
Is that helping our cause?
As far as the paperwork, there needs to be distribution of this material. I agree it is probably a mountain, but somehow, wouldn't it be quicker to scan this material into the computer so that it is easily accessed, rather than repeatedly making copies which would cost more?
Tell me we at least have that technology; I do.
Thank you again for your attentiveness to this matter. Let me know how you can make these documents available.
Laura Hart
----- Original Message -----
From: Beedle, Chet
To: Laura Hart
Sent: Tuesday, March 10, 2009 11:15 AM
Subject: RE: Cal Mtg Proposal
You are welcome for the response. I am not aware of any scheduled negotiations with Cal Mortgage. Relative to any current documents from Cal Mortgage, there are none since our last refinancing in 2003. Our original copy of that refinancing is in administration and Heidi can make you copies of the portion that you consider pertinent. The documents are very voluminous and it would help if you indicate to us those you consider necessary. We do not have these documents electronically, so they would have to be scanned or hard copies made.
-----Original Message-----
From: Laura Hart [mailto:hartofthekrv@msn.com]Sent: Monday, March 09, 2009 6:41 PM
To: Beedle, RE: Cal Mtg Proposal
Hello Chet:
Thank you for your response. I want to begin by saying the negotiations with Cal Mtg. will take place with what I understand, the board, yourself, Assemblywoman Fuller, and I have a private person in finance who will be overseeing the situation also.
All correspondence concerning these negotiations will go on to the Attorney General, Jerry Brown and Governor Schwarzenegger as well.
I will need all current documents regarding Cal mtg. and the most recent refinance for reference.
Copies will be sent to the other parties as well. You probably should email them to all of us involved.
xxxxx will be contacted shortly as to the intentions of following through on this proposal as well as adding other provisions as well as possible numbers which favor the hospital at this point.
They need to know they will not receive monies for at least two years. That's a definite. Our upgrades, with equipment, training, and construction will not allow for payments for at the very least two years. And any monies in the account deemed to go to Cal Mtg. will not at this point.
All the information I am receiving says we are on the side of doing what is appropriate with our bond and insurance situation.
Maybe the disparity between traveling nurses and community employees which is quite disproportionate at this point, can be rectified and mended with a new balance of monies.
I'm going to cc this letter to the board members so that they may stay in the loop on this matter.
As we both know there will be a serious cleansing process taking place to get the stains out of this district and upgrade the care and facility at the same time.
I repeat, thank you, for your support of this community. We need to hear more new voices and ideas from the valley itself.
God bless us, Chet, we need it.
Take care, Laura Hart
The reason the bond is so needed is because all of the people on medi-cal and other forms of government aid. These people use the hospital as a doctors office or 24 hr clinic. That is not the purpose of the hospital. Also about 80% of what is on your blog is just wrong. Don't know what your "sources" are but making up something and writing it in a blog is not journalism. The hospital does a lot of good for the community and if it isn't helped by the people that use it then it will go away and you can choose Bakersfield or Ridgecrest for your "emergency" healthcare 1 hr either way.
ReplyDeleteIt is just that attitude that causes so many problems. It is not my fault that I ended up disabled and unable to work. I have medi-cal. I use this hospital. I have good insurance too. But before I got that other insurance I was one of your so called "People on government aid" I raised my kids on government aid. Where do you suggest that everybody works to get that other insurance? McDonalds? Vons? Mostly those businesses will keep an employee just under full time so as not to have to provide insurance. I don't know if it's the same for our hospital. And have you looked at the insurance rates for individuals or single families lately? It's worse than rent. The only reason I have good insurance is I'm on my sister's policy through her work with LA county.
ReplyDeleteAs far as this blog being wrong? Laura can back-up everything she reports with documents and video and voice records. What do you have anonymous? You to ashamed to even identify yourself? With a comment like that I'd be hidin' who I was too.
We need our hospital. We need to know that when we go to the ER that we will receive appropriate care by someone who treats us with respect and dignity, even if we can't treat them very respectfully because were sick. It's amazing how a kind quiet word can sooth the most up-set patient.
As far as going to Bakes or Ridgecrest for ER? For good diagnostics I would only go to Bakes. You take your chances if you go here.
John Davis is my name. So what is your disability? My mother is on medi-cal becuase of a true disability not becuase she drank, drugged or ate herself disabled but because of a drunk driver that smashed into on her way home from work. I would bet that 80% of the people on disability here aren't in the same catergory. Why would you expect someone to treat you with respect and dignity if you "too" sick to do the same in return. I have been in the ER before too and I was never "too" sick to treat someone respectfully. So how are you on your sisters insurance is that not defrauding the state of california or county of LA. Either way I'm not from here and would never choose to live in kern valley as you or everyone else that lives here has "chosen" to live in the kern river valley. So it's McDonalds or Vons fault that you don't have insurance? Maybe if you took a litle more responsibilty for yourself and didn't blame everyone else for your problems you would be in a little better situation then you are now. That's the attitude problem not only here but all across our great country. It's always someone else's fault.
ReplyDeleteQuestion: Debbie Peugh,
ReplyDeleteIs the Bond needed or not?
You went off on a tantrum but never said is the Bond a good Idea or not.
Well John, I was disabled in an accident also. I broke my neck. Don't be judging what you don't know.
ReplyDeleteAs far as the bond goes, I don't want this administration to get the bond because They have not been HONEST or forth coming with this community. Plus no other options have been looked at. What about restructuring the debt. What about selling the hospital like they're doing in Reedley. You can see the story in the Reedley Exponent, the link to which is here in this blog. This community will never pass a bond for a hospital that they use only if they have to.
The bottom line is yes we need the bond, but we can't trust the current administration to manage it properly.
Okay so you and my mother are 2 out of the maybe 2-3 hundred thousand people in California that are on disability that are disabled through no fault of there own. I know that isn't really the actual count but I'm sure it's a lot more that aren't actually disabled. Restructure how? If the administration is so bad at dealing with finances why would someone hand out another loan to help out someone that can't pay there bills. That's how people get into credit card debt. They run up a card and then when the minimum payments goes up to more they can afford or the 0% introduction rate goes up to your actual 29% they roll it onto another 0% card. Who would buy the hospital if it were to go up for sale? The............People? How when they won't even pass a bond. No one would buy the hospital its leveraged up over it's eyeballs.The hospital should only be used if you "only have to". That's what your doctor is for all your headaches and sneezes and coughs. Not go into a facility where the cost of one ER visit is $1000 or more. What other options bankruptcy? So the hospital can tell the little debtors to screw off and the one they owe the most money to cal-mortgage gets there money no matter what.Then have to go back to those same people they told to screw off and ask them for credit to get supplies. You might want to do a little more research before you start talking about other "options".
ReplyDeleteIf you don't care if the hospital is closing don't vote for it. If you vote for it, then you will probably save the hospital from being shut down. Is that what you want?
ReplyDelete(Laura Hart here: Why do you think the hospital will close down, where are you getting that information? The hospital will not close down if the bond doesn't pass. And the bond passing doesn't even guarantee the future of the hospital.
If they don't get the bond, and the new ER, they will however, get a new set of managers to bring new eyes to a tired situation.
Who do you think would be closing the hospital, a thought? Cal Mtg. could potentially do this.
A stream of lawsuits could kill it off. But it would regrow.
The question is have they come to us and said, bail us out? No, they have said, we are building a new ER with your money, vote for it. It's hardly representative of what is really going on.
But I appreciate your comment, but must disagree about the actual possibilities: it's not just black and white. Thank you.)