Documents show KVHD knew of financial struggle: July 2010

As the buzz around the town has been about another cost to homeowners aside from a recent water rate increase, shocking electrical bills, a freeze on cost of living increases for those on fixed incomes, pension fund losses, propane, gasoline and food now comes another hand out: more property taxes to help the Kern Valley Healthcare District pay off the revenue bonds which cannot be bankrupted.

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

Request for relief from Cal Mtg/update/bullying

Update: this letter was sent out after KVHD, CFO, Chet Beedle said we were unable to pay our bond debt payment of 1.7 million. His story changed on camera as a new CEO had arrived Tim McGlew. The new story was that he never said that even though it's on tape. We had the backing of Jean Fuller and the KVHD chairwoman, Kathryn Knight, but the whole negotiation was quashed as Beedle, former CEO Rick Carter and board member Brad Armstrong convinced the chairwoman by visiting her at work unnannounced, that it wouldn't be a good idea. Today KVHD is being audited by a management company HFS sent in by debt insurer Cal Mtg. They have been in default for 24 years and there have been at least 4 or 5 attempts to secure a general obligation bond to have the community pay off the debt in property taxes.)

Dear Mr. Morey and those who oversee the state Cal Mtg. office:

I have spoken to people in this community now and have come up with an offer that will pay back certain funds to Cal Mtg. but at the same time save our hospital. I hope that our community means something to you, and that the objective of the low cost loan program is not to simply make money, but to bring about growth and change.

At the bottom of the letter are comments from the community which will tell the story of what this Skilled Nursing Disaster has done to the image and potential life span of our hospital.

As I have said in my blog, Cal Mtg. shoulders some of the responsibility as to what has happened to our facility. For instance, when you sent Brim Management in to take over the management of the hospital when the payments weren’t forthcoming; you brought on someone who had bad credentials. Someone who is being sued in a civil suit right now, but will hopefully be brought to justice soon.

Here is the proposal for relief. We are asking for relief and we will fight to get it. Our belief is that this situation calls for action and we are asking that you take action immediately to avoid another disaster: losing healthcare in the Kern River Valley.

At the Finance Committee board meeting, the CFO, Chet Beedle painted a grim picture for this year. We have already dipped into the reserve account that we are required by you to keep, to the tune of 180,000, to help make our most recent payment.

Your next payment is up in the air at this point and it will be contingent upon the perpetuity of this hospital.

We have already discussed that the hospital building is run down; we have been short staffing and underpaying our employees; there are shortages of various equipment and services for the community. The Skilled Nursing disaster COULD happen again, if we don’t act now.

If this hospital had the almost 1 million a year it pays to your office, there could be some serious changes made that would save the hospital from being the pariah of our community. And keep frightened residents from driving down our winding canyon road to seek medical treatment.

This community will pay you back your money, and already has been for 17 years. But we have to change the program because of the emergency situation.

We could open an investigation and look at all the records, the old and the new; and truly review the success or lack of success of this program. But time is of the essence for KVHD. And hopefully, you will be able to enact this proposal very quickly.

The Proposal:

First, the original sum of the revenue bonds were 13 million dollars. Now revenue bonds are based on business projections, like in the case of KVHD, it was to put in that skilled nursing facility, the CFO says we can’t survive without.

Then I understand when construction problems occurred, your office threw another 9 million at the problem.

In the end, the estimated amount of beds in the SNF was half of the original business plan, so therefore, the payments were outside the original numbers. They couldn’t pay because they didn’t have a finished product that would generate the original projections for revenue.

Now 17 years later, the hospital limps by, always trying to make sure to pay your office, and less to make sure the facility is staffed, trained, and in touch with current standards and technologies. That’s why I can’t figure how your program is helpful?

Even if you shut them down you would never retrieve the money you loaned, because they do not have that kind of net worth.

The IRS, a voracious office, and other types of creditors, knowing that they cannot collect all monies owed, make deals. They reduce the amount so at least they can retrieve some of their losses.

Okay, here’s the numbers: after 17 years of payments will still owe 15 million dollars from the original 22 million.

We figure we have paid your office and the taxpayers 17 million dollars. Yes, there is no interest in this figure, but that is not the issue here. The issue is that you have received this money.

Since Cal Mtg. originally agreed to the 13 million dollar business plan we consider that paid in full.

We propose that Cal Mtg. reduce the debt to 5 million dollars and refinance it over 30 years with low payments the hospital can handle. Yes, that means lot’s of interest for your program. These payments should be no more than 250, 000 a year, compared to the 1 million dollar payment.

This would allow the hospital more than 500,000 a year to get the hospital upgraded and staffed.

However, with this agreement comes two years of deferred payments, meaning we pay you nothing for two years and reinvest the monies we would have sent to your office on the hospital.

Here would be the conditions the hospital would have to follow to obtain this relief:

The district would have to join JCAHO and become an accredited hospital. This would keep the SNF from ever sinking below standards of practice.
There would be no raises for administrative salaries for two years until the hospital has implemented certain requirements. And raises in Administration from this year will be reduced to the original amounts, but with just an inflation adjustment of 4%. (That’s the raise the seniors in our community are receiving from Social Security.)
The board will have two members who were involved in covering up the SNF disaster, removed and bring on two new members. That would mean, Bob Jamison and Brad Armstrong have to step down if they want to help the hospital. No charges will be brought against them regarding brown act violations, conflict of interest, and privacy violations if they agree to leave.
The current CEO and all administrators must have their credentials checked to make sure that they are in qualified for the job they are doing.
The hospital must make an effort to increase staff positions by 10% the first year and another 10% the second year to people who live in this community. And at least two of the administrative positions must be held by members of the community. This could include people already working at the hospital.
The hospital must use this deferred payment period to pay off all outstanding debts to suppliers and providers.
An outside regulator must be contracted to monitor that all of these conditions are met.
During the deferred payment period, a construction plan must be conceived to upgrade the ER, and seismically retrofit the acute care wing. The plans must be in line with the extra monies the hospital is receiving so that there are no more loans necessary.
The hospital must also use the deferred payment time to obtain technology that allows the insular facility to directly contract with doctors who can read, treat, and follow patients via new computer technology. The current radiologist is unable to keep up with the imaging, and this would bring in doctors without having to bring them here.
The board, with its two new members, must create a comprehensive plan to deal with billing issues, collections, and potential lawsuits stemming from this incident.
New legal counsel will be hired for the board so that there is a clean start after many illegal and unethical practices have taken place
A internal audit committee will be established where the board, community members, employees, and consultants can streamline and plan for success.

That would be the initial framework for our new “covenant.” There could be additions to this, but we start from here.

I am sending this out to our local officials, as well as up the political ladder, and asking that they agree to this relief package.

We need this hospital and we need it healthy. You need money. So, can we agree upon this deal?

Please send this to your attorney and supervisors and begin the process as soon as possible. I will call you on Monday, March 2, 2009 at your office to discuss details.

Here are a few excerpts of the public’s reaction to the KVHD arrests. After you read them, you must understand that this is only going to get worse for us. The employees were fleeing anyway; now they have a terrible resume to take with them.

Yes, I will blog this letter tonight so the community knows what is going on. And it will be easier to disseminate the information to the proper authorities that way as well.

Take care, and take care of us. Thank you, Laura Hart

Comments from community, Kern Valley Sun, website:
" This is what is happening all across the country:
1. Many of our elderly are taken over by courts,
2. Appointed a guardian,in most cases friends of the court,
3. The guardian then isolates the elderly person and then keeps them from family,
4. This upsets the elderly person, and they start voicing their wishes and wants,
5. So then the guardian, and doctors start medicating, the person is then easier to manage for the staff. " I hope justice is swift for these 3, no one deserves the kind of treatment those residents received on their watch. They will have to answer to their maker one day...murder is murder "
"They outta administer the same drugs to these 3 and see how it works on them!
Show no mercy, Fry em I say! "

Measure M for malfeasance: attention Jerry Brown and Jean Fuller

Ma’s gang
Follow the money...Measure M

There were many of us pushing Measure M, the ill conceived general obligation bond, hurriedly thrown together, unworkable architectural drawings, and certainly no true “sharpen your pencil” estimate.

They say when investigating, follow the money, (It’s even a favorite of Jock strap, Bob Jamison) well I can certainly cite some fringe benefits to acquiring “free” paid for by the community, monies. Like CFO, Chet Beedle, said, they could’ve taken depreciation on the new construction to help pay the huge tab when the original, 1986, board and administration drunkenly fell into the arms of Cal Mtg. and their pile of accessible money.

And I’m sure there would be some interest involved. Maybe they could not use the monies for administrative costs, but there is more leeway than you think.
With a 17 million dollar outstanding debt, the administrators and three board members set about with drooling hunger to obtain this 12.5 million dollar bond.
Reminding you (sorry if I’m redundant, but there’s a lot of information) this is exactly at the time the skilled nursing facility was left alone with a new director of nursing and a short staff which we are all aware lead to criminal and civil charges being filed against the district. Along with astronomical costs to the district in penalties and the use of management companies.
But the skilled nursing facility was hardly a priority, even though without it, the hospital would disappear. The main objective in the summer of 06’ was getting bond money.

We became the Measure M gang, and Ma was our leader. We apparently would stop at nothing to obtain these dollars.

Our gang consisted of Ma (top dog), the numbers guy, the spy, the lapdog, media attack, the henchman, the buffer, the firing squad, the idiot, and me, the unwitting reporter with a very low IQ.

I was very much involved in the strategic plots to sell the community the bogus bond, and the scapegoats, Robert and Kay Knight.

In fact, I played one side against the other. I recommended that Bob Knight vote to put Measure M on the ballot. I knew a bit about political maneuvers, so I thought the best way to win the bond money was to have a unanimous vote.

Knight kept telling me that the construction plan was not complete so how could they know how much money they needed. (It’s always sensible in retrospect.)
He also would mention the relationship between Rural Health Design Network and Aspen Street Architects.
I really, really had to work it to convince him to vote with the rest of the board. I told him it’s an opportunity for construction, more services, satisfy seismic SB 1953, bring in new doctors, and I believed every word I was saying.
I was just a parrot of all our ancillary friends who Ma sent me to for information and quotes.

Knight recounted that there were no plans or estimates he had seen. He said there were no estimates from other companies. He said that there was no fair comparison between spending less and retrofitting and remodeling, opposed to a new building.
Looking back, of course, with the first disaster with the construction putting the hospital completely out of line and incapable of paying back those 22 million in bonds, one would naturally want to step forward carefully and cautiously.
Knight said he would agree to do this if he saw some drawings and estimates. I quickly researched through our friends at Office of Statewide Health Planning and Development, the benefits of a new building as opposed to remodeling. Then I spoke to our architects who won the votes of three of the board members, and they sang the praises of componentized construction.
I went back to Knight with my information and told him to think about the vote. I told him that he would be working with the hospital and not be the bad guy anymore.
I know Mr. Knight voted against his conscience at the August 2006 board meeting, when he sided with the rest of the board to go for Measure M. I could see the hesitation and conflict in his eyes that night.

Eventually Ma admitted to the fact that there was not enough money to do what they wanted to do, what they stated on the ballot they would do with our property tax money. That was after the defeat of the measure and before they began talking about another bond measure. I have her quoted.

So, I wrote a blockbuster article to send off the Measure that you really couldn’t measure in terms of money, type of construction, or feasibility.
That week the newspaper read:

Unanimous Vote for Measure M
The night was right for Kern Valley Health Care
District board member, Robert Knight, as he motioned the board to approve the
general obligation bond measure to be put on the Nov. ballot at last Thursday’s
board meeting.
Knight, who has at times in the past been critical of the
hospital administration, read a small statement pledging his support for the
venture and his intent to unite board members in their quest to complete the
undertaking.
“I have also determined that if I support this bond issue, I then have an obligation to the residents of the district to assure that their tax dollars are spent in their best interest.”

Funny, though, I never told Ma and gang about my plan; it was a surprise.

They always told me that the Knights were subversive and wouldn’t play ball with the rest of the board. They were a negative.
I thought everyone would be happy that I got him to do this and hopefully win the bond measure. And maybe even work together with the board.

I don’t think they liked it too much. Ma asked me why I would be talking to “those” people anyway.

And the henchman and media attack were flat out mad at me about it. Media attack questioned me about it saying that they didn't need Knights vote anyway.

I had made the Knights look good and that was bad. The gang needed to continue the charade with the Knights and I had unwittingly brought them toward the core of the gang where the truth was carefully stored away.
But our gang, who had control of the board and administration, set out to defeat reason by creating a smokescreen.
Politicians were used and endorsed with their good names the flaky general obligation bond, including Assemblywoman Fuller.

Upon hearing of the board’s decision, Jean Fuller, former Superintendent of Bakersfield City Schools and Republican nominee for the 32nd district, State Assembly seat, being vacated by Assemblyman Kevin McCarthy, said she realizes how important the hospital is to the valley.
Fuller, who was born and raised in Bakersfield, and has property in the valley, said she has been coming to the KRV since she was a child with her family. Her parents, along with other relatives, retired to the area years ago. And she said because of their health problems, the only way they were able to stay in the KRV was because there were health services available. “Without that hospital they couldn’t have lived there.”
From her own experience, Fuller believes the hospital is critical to the community and the economy of the area. Without it, without any emergency services, it could create a hazardous situation for residents and those who visit to recreate.
“I just know without the hospital, it’s so isolated,
without the hospital, people would have to drive down the canyon and they could be dead by the time they get there.”
Fuller said she will be supporting the hospital in all its efforts to obtain the funding necessary to meet state requirements and improve the facility itself. “The KV Hospital provides critical care services for its area and residents, and most of the population depends on it. So, I believe this is an important bond to support.”

Mrs. Fuller was just one of many who were used for this ill planned bond.

The South Fork Woman’s club received a visit from Ma and myself and asked the organization to back the bond. These women were not easily convinced, in fact, they were a tough crowd. They looked in their book of rules and regulations before they would even consider putting their club name behind this measure.
Ma gave an impassioned speech at the club meeting looking out over some very stern poker faces in the audience. I found my dancing shoes and did a tap dance that Sammy Davis Jr. would have been hard put to follow.
We got our endorsement. (I'm so proud I could hide in a cave)

But what came next caused instant cup of soup paranoia: Kay Knight was running for the board. She was on the ballot which would mean if she won, the power structure could be possibly broken apart? The worry, Ma told me, was not that Kay would win, but that the Knights are trying to stack the board.
What?
-----Original Message-----

From: Laura Hart [mailto:muymala@msn.com]

Sent: Wednesday, August 02, 2006 2:04 PM

To: pamelaott@KVHD.ORG

Subject: election time

Pam: so, I just heard that Kay Knight is running for a seat on the board. Wow. I got the number of the other fellow who is running and I'm going to give him a call. Thanks, Laura

Laura,
Yep, you can bet that the intent is to have another BK (Bob Knight) backer in office, BK has told me many times that he needs another board member who "thinks like him". He has also told me that I should get a job in the probation department because my tenure is overdue. I checked with legal council and he sees no reason why a husband and wife can't both be on a board (as my ol' daddy used to say.........bad deal, real bad deal.)Brad is calling Dave Freeland to beg him to consider running. He is a bright, well known fellow (ran the Forestry for 35 years and recently retired). Let us pray! Friends of the hospital not yet up and running, but after tinight we will put the Masaratti in 5th and be off & running!
>From: "Ott, Pamela" ">pamelaott@KVHD.ORG>

To: 'Laura Hart' ">muymala@msn.com>

Subject: RE: Laura Hart update>Date: Thu, 3 Aug 2006 10:03:06 -0700>>

Well, here we are another day and clean undies. I did some snooping and Roger Wilson is the fellow who was at the last meeting with the big glassesand gray hair. He is the husband of one of our Respiratory Therapists who works with Bob Knight's last employee/friend, Tom Wright who is the manager of Respiratory Therapy.

Like a good dog I ran everywhere trying to pick up the scent of the board stackers who wished to take power.
This lead to Ma asking “the buffer” who had been on the board for a long time and still is, to run again to ensure that there would not be a second Knight or even a Knight supporter on the board. There were two board seats open, one was Armstrong, and the other was JoAnn Jones who stepped down from the board for a position in the hospital. This was dangerous because two seats would mean the end to the sticky three.

It seems “the buffer” wanted to leave, and several community members who believed in Ma’s propaganda, were considered to be put on the ballot.

Though they had the quorum with the board, Ma said it would too risky if Knight won. The henchman's kin was a candidate as well to make sure there were no errors.

Upon my foray into the hospital to speak to the employees, I found that most of them were against the measure. I couldn’t understand that. Why wouldn’t they want the hospital to be improved? It made no sense. (Now it makes complete sense)

Most employees were too freaked to even speak to me. One even told me I was an idiot and walked away. (I thank him for seeing me for what I am.)
But then I met up with an employee who straight up told me he didn’t believe in the management. And he did not think they would properly spend this money, that the plans were no good, that employees were underpaid; he simply didn’t trust them. He was and is Tom Wright mentioned in the email above.

When I left his office after the conversation one of gang was outside the door, possibly listening, “the spy.” She would somehow be wherever I was at the hospital. No kidding this is funny really. I would chit chat with someone and suddenly see her standing and watching.

I told Ma her problems with votes are inside the hospital. And I told her about the outspoken employee. Ma arranged a meeting to divulge the secret agenda of this employee.

The gang was going to stamp out this employee and all others who flared up.
I told Ma we should have a meeting including the employees in question before I write the story. I figured if everyone was together there would be some truth told.
The numbers guy may have had some notion that this meeting could come back on them, (and he’s probably correct) so he bocked at the first invite.
But he attended. The only invitee who didn’t attend, was a do-gooder doctor, who escaped this trap, but was shot down in flight in the end.
email Nov.28,2006
I would be happy to be a part of a meeting with administration and Dr. Pormir. I do not consider it appropriate to be a part of a group meeting facilitated by a newspaper reporter that deals with discussion regarding employees salaries when those employees are present. I believe this to be an administrative and Board function that has already been dealt with by the Personnel & Policy Committee of the Board. Therefore, I must respectfully decline to be a part of this group meeting. Nevertheless, I would be glad to express my views on any related matters to the press individually. I will make myself available anytime Wednesday for this individual or administrative only discussion.

Thank you for the invitation
(Later that day….)
I regret that you have employees going to you with wage concerns. There exists a mechanism in established policy and procedure for employees who have grievances of any sort to take first to their manager, then to administration if not resolved and finally to the Board of Directors. This is the chain of command in every hospital with which I have worked for over 35 years. Employees who don't get their way because management and the Board have made the best decisions for the organization will try to "grasp at any straw" that they can in an attempt to circumvent the system. No matter what the "threats" are, if management or the Board give in to the meteoric and allow this circumvention, in my opinion, the organization is doomed and will undoubtedly return to the days of its existence when it teetered on the brink of bankruptcy.

Let me assure you that the salary administration plan and the current management of the Healthcare District is appropriate. As the insurer for our revenue bonds, the Cal-Mortgage division of the Office of Statewide Health Planning and Development gets a copy of our financials and board packet each month. They have been and continue to be very complimentary. As a matter of fact, there is a clause in the paperwork of the last bond refinancing from 2003 that speaks to the need for the District to get their approval before changing the individuals in senior management.

If the District is to remain successful, we must rely on the management and the Board to make the right decisions for the organization. Those decisions should not be circumvented in any manner by outside organizations. The community has the right and I believe the obligation to elect Board members whom they believe will best represent their interests. Thank goodness that is what our free enterprise system is all about. Should that elected board as a body believe that there should be a management change, then and only then should that take place. The systems are there for all of us . We all need to use them as established and as intended. (okay)

Just let me know when you would like to speak with me, I will gladly and willingly make myself available to you individually or with the administrative team including Dr. Pormir. I would also like to express my personal appreciation for your efforts and know that you are trying to give the community the best facts that you can. I also appreciate your support of our efforts as the management to do the best we can for the organization.

Have a great day!

We had our meeting, which turned out very interesting. There was a lot of sharing about two employees. And many offers of quotes which turned out to be totally incorrect. That taped meeting will be coming soon. The numbers guy made sure I had the correct figures for my article.

What I said was that Tom received double digit salary rate increases while most of the other employees' salaries were frozen. All of these salary increases were granted by Bob Knight. The actual history is al follows:
1) 9/28/97 - Annual increase of xx%.
2) 12/1/97 - Special salary adjustment based upon survey of comparable positions - Increase of xxxx%.
3) 7/1/98 - Special salary adjustment for increased responsibility for Durable Medical Equipment - Increase of xxx%.
4) 9/27/98 - Annual increase of xx%.

I am sending copies of the Personnel Action Forms signed by Bob Knight for these increases to Pam as per her request. I think this tells the story.

(I think it does too.)

But there's more to tell...We're not done yet.

KVHD Elder Abuse case scheduled Jan. 5: we will get you the report

If it's rotten at the top...

Former Kern Valley Healthcare District, CEO, Pam Ott, is scheduled in court today, Jan. 5, along with the Director of nursing she hired, Gwen Hughes, and a doctor who had been with the district ten years before Ott even arrived, Dr. Hoshang Pormir.

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

For more information on the times and charges, go to the Kern County Superior court link, and you can look up the criminal as well as certain civil cases that are underway or have concluded.

Pam Ott, who seems to be the last defendant charged by the state, Medi-cal fraud and elder abuse, as well as spending time under the scrutiny of the board of registered nursing.

Ott was hired on in 2003 as the CEO of the KVHD hospital. Her resume showed two obviously, had someone actually looked at it, degrees from a school not even accredited in the state.

But that major flaw that the board of director's and former CEO, David Green, from BRIM management company, brought in around 2000, after the  board negated a contract with William Casey who was thrust upon the district by our creditor, Cal Mtg.

After Green streaked out of here leaving Ott in charge of the henhouse, things slowly but surely began to change.

The Ott regime has been dilineated on this blog, but again, the day before we head back to court I can't help wondering why there wasn't more that was taken off the top?

The people in charge at the time were all mandated reporters, meaning they would have had to turn themselves in for ignoring serious problems caused by staffing cuts which lead to unsafe conditions.

We had Ott at the top of administration, the CEO, and the one who signed the reports for the skilled nursing facility: the very same one she claims she knew nothing about what they were really doing in there. (Hey, she signed these forms as administrator, not as "I guess that's what they're doing.")

Her second in command, former Chief Nursing Officer, Sharon Brucker, was so close to the situation, knew and heard all the complaints, and finally succumbed to the paranoia brought on by Ott's fear that someone, anyone, a sick reporter, may find out.

Brucker was involved in a coupe against the hospital's own employees. Like CFO, Chet Beedle, and Human Resources leader, Michelle Rosato, all "top guns," who broke the privacy laws by trying to impugn the reputations of certain employees who didn't agree with them. (later it would be the firing squad as times got more desperate.)

Ott, Brucker, Beedle, Rosato: CEO, CNO, HR, knew nothing about what was happening in the skilled nursing facility? The top administrators?

But what about the board of directors whom this community votes into place, the one's who are to keep the people, voters, patients, rights overseen, were cramped up into a ball of three out of five. (the sticky three, a quorum in a five person board)

Bob Jamison defended Ott even after her resignation. He used the radio station, his employer, and formerly paid for advertisements by KVHD, to defend Ott.

Former board member, Barbara Casas was apparently unaware that Ott was calling her "crazy" and other names behind her back, (I have emails) as she was used basically for the third vote.

And Brad Armstrong, what can you say about somebody who has the opportunity to save lives and careers but does nothing but attack the victims? His message hasn't changed: the employees are and were the problem. (I disagree. He allowed the problem to continue and created a hostile environment where the truth that the CEO, CNO, CFO, and HR were involved was not to be spoken without recourse)

How to get fired or get a reputation: by KVHD employees

I remember the nurse who wrote this very well. She came to me after she was fired, because there was nobody out there who came to help.

We were alone in our investigation. Yes, it was reported to many agencies, whom I will call soon, because as I said, this is the year of "accountability."

Public health didn't just recieve one phone call, no matter what they try to sell you, they just didn't know how bad it really was and they had a very persuasive CEO, in Ott, to deal with.

The Kern County Grand Jury didn't think much of our situation here either.

Oh, and the media, well, they weren't going to cut their own purse strings, and some were bold enough to lie and dupe anyone who would listen.

This nurse knew that Ott was aware of the situation. Why? Because she was one of many who complained. She was fired.

I'm a nurse practitioner and I can help you

In November of 2006, one month after I had a sudden weight loss which never resolved, I had to tell my "friend" at the time, Pam Ott, that I had a nightmare experience in the emergency room.

I went in seeking "food" but intravenously, because I was wasting away. Instead I got loaded full of drugs which "blacked me out." (we will address the irony of this situation in another blog, Rural Health Clinic, Jewel of the District)

Unfortunately, they sent me home intoxicated and driving by myself. I don't rememeber how I got home. I was alarmed.

So, I told Ott what had happened, and now began a whole new round of trying to help me, checking on what I'm eating, making referrals with doctors inside the hospital so I don't get too excited and tell someone about what happened.

In this email to me from Ott, she tells me that she wants to help me get better, and that she was a "very good nurse practitioner" at one time.

Ott, according to state records, has a registered nursing license she recieved from Fresno city college in 1971, but she was not a nurse practitioner.

So, what does that make her telling me she was a nurse practitioner? A liar, yes, but also someone who would say and do anything to cover thier own butt. Who would openly lie about credentials as Ott did?

And the state almost left her behind in this investigation. Jerry, Steve, Donny, she is the one you want to prosecute, the one to put in front of a jury.

But I am dissappointed that you didn't take the top layer. You have done so in many cases coming through on your public relations pipeline: why not us? This is a form of the corporate fraud you like to tangle with. Or get money from or something like that.

As you  can see I continued the effort to unveil Ott, but I also stay on here at the hospital waiting to unveil the rest your "big time attorney general's office" chooses to ignore.

No, no, it's okay, I'll finish your work for you. If you're too afraid to get mixed up with obvious wrongdoing, I guess we will fend for ourselves.

I'm taking one of them, Bob Jamison, to small claims next month, and then I guess you will just have to wait and see what I do next.

See you in court...

Give us all a break KVHD: that's not an investigation, this is an investigation...

KVHD, former CEO, Rick Carter states in documents from February of 2009, that a report of neglect in the skilled nursing facility, was "unsubstantiated." But the KVHD investigation proves not to be so substantial:

On 11/23/08 two CNA's report to work at the KVHD skilled nursing facility and and say they find residents wet, skin rashes, a wound, and alarms not on that morning.

After making rounds they wrote up a handwritten report and gave it to the RN and LVN in charge of the SNF overnight. They both say they wrote a handwritten report, signed and dated it.

The RN and LVN are traveling nurses, who the two aides, say they gave their report to that morning.

Both CNA's who filed this report have been fired. Both have had complaints filed with the state board of nursing after their terminations.

Hospital records state that the nurses who were in charge of the SNF at the time of the report, could not be found to add anything to the hospital's own little investigation...

I just got off the phone with them.

I forgot to ask them if their licenses were under investigation too.

It took no time at all to find them and the hospital cannot say without looking ridiculous, that they couldn't have done it themselves.

I imagine the hospital has the excuse the employees had left and therefore could not be investigated by the hospital. But they would've been witnesses not the subject of the investigation.

(See stories below, "employees fighting back")