(LOOK AGAIN) Cal Mtg. doesn't want to see this

Cal Mtg wanted Measure M too, not just this new GOB

Premature accusation from March of 2009 as I saw the financial collapse last year. This post has been on the blog for more than a year, but I put it there in anticipation of what is happening at the hospital now, default and deception. This is an interview I did when I was that popular reporter who wrote what the hospital wanted me to, as I recieved free healthcare and other benefits for my support.

Much like you see with the local newspaper the Kern Valley Sun, I too, wrote advertisement like articles which were totally bias to help the paper or the coporate owners make money. I'm as stupid as the current writers for the Sun, but then I woke up.

FLASH to 2006 when we were (me included) pushing the general obligation bond to the community.
Remember, Predatory lending is defined by a pattern of who benefits.

Dejavu, four years later we are back not with the excuse we have to seismically upgrade the building or close down: now they want us to pay off a 24 year old debt that should never have gone that far.

I'm tired, and I will try to get time tomorrow to reveal the rest of the interview and if necessary explain the obvious implications.

READ ON:

Interview with Gary Evans, Cal Mtg., regarding the Cal Mtg. program and what sort of help and relief the community can expect. Mr. Evans said this was "his opinion." This interview took place in November of 2006, right after the general obligation bond to build a new wing on the hospital, Measure M, failed.
This is a transcript from a digital recording.

Me: What is Cal Mtg.?

Gary Evans of Cal Mtg. : We are a division of OSHPD, but we are funded entirely from insurance premiums.

Why was this program created?
GE: There is a need throughout California for healthcare, private, non-profit, excuse me. Non-profit health facilities in California are unable to raise monies on their own, their own credit worthiness to build facilities so this was created to try to assist organizations to borrow money to build health facilities in needed areas.
(Aside: I can tell you that this "explanation" of what Cal Mtg. is NOT or does not even begin to describe the powers that be here. At the time of this interview I could only hear clicks, while now I'm immersed in the double talk, a translator of lies. They are a sinister presence building their portfolio and their record for not allowing bankruptcy against their almost unpenetrable facade.These people are big time, they are not afraid of some reporter type, your average gal about town. They tolerate me and probably poison my water. Oh that's right that's already being done.)

Is there any possibility they (KVHD) could go through you to do upgrading, the seismic retrofitting; or are they pretty much out of the game with the debt what it is?

GE: Their debt is, umm, significant for a hospital their size. And to add additional debt to be paid by revenues from the hospital would probably weaken the hospital. So, we would probably not be in a position to do that. I think the GOB (general obligation bond) is the only reasonable way that could happen.
(Of course a GOB would be great for everyone involved except the community. A community who has no say, gets no answers, is repeatedly lied to, thrown out of their jobs at the hospital for traveling staff, and is expected to pay the bill for all the mistakes? If the mistakes were gone, along with the mistake makers who are still here, then this community might step up and help with a bond. Until then, there's no amount of Public relations fluff that can bring back trust. Only truth elicits trust.)

Regarding, bankruptcy: 
 
GE: Well, any organization can petition a court to approve a reorganizational plan and in that plan it would be possible for the court to say , umm, its reasonable that you shouldn't have to pay this debt; you aren't able to pay this debt and it could be erased.
That's highly theoretical and the fact, the facts of the situation would be reviewed by the judge: is there organization paying the bills? Can they survive without going into that kind of reorganization? 

And my guess is that the attorney general's office of the state of California would fight pretty vigorously to oppose any type of reorganization at this point. 
(That was 2006 and this is now. KVHD is in trouble and it won't get better but worse. How would a judge look at the situation now? And how does it look to Cal Mtg now? KVHD currently enjoys some sort of pay off with Cal Mtg. with another recent loan transaction, probably costing the mental midget of math, Chet Beedle, CFO, a bundle but like the DOJ and the Dr. Pormir plead out to drugging people, calling it a legal "first"--of course making it all better fro the rest of us. We the people are so duped by this slick outfit, I can only appreciate their incredibly insignificant presence, yet oh so powerful. A great job putting this organized crime group together. Seriously. Kudos to the excellent deception. No bankruptcies would probably never occur as they might allow for "SCRUTINY.:" And we don't have any scrutiny.)
 Re: Legistlative relief such as was discussed with Senator Roy Ashburn.
 GE: It seems to be more of a hope than a reality. Its never been done before that I'm aware of and, um, I would guess, I guess the Senator's office would be a better place to answer that question.
I would be surprised if anything could be done that way.
(Everyone would be surprised. We have yet to see a politician really stand up for their promises, platforms and principles. It's the system called the popularity contest, not who is best qualified for the job, or who will stand up for what is right.)

Re: Payments on bond and management


GE: We are, we have insured their bond issue, so if they can't make payments on the bond issue, we then have to make the payments.
We are interested in maintaining appropriate management at the hospital. So, if they terminated management and hired somebody we felt was not qualified to run the hospital; we do have the authority to say no in that situation.

(Well, what kind of oversight was it on the part of Cal Mortgage when they allowed a CEO to come in with some phony credentials? Did they, like Dave Green, from Brim Management, actually see those credentials? So, then I see that there is culpability on the part of this government, insurance, monster. Since they hire people, and that person may not be qualified, and then that person does very bad things; I'd say it goes back to Cal Mtg.)

(Look again) The Chet Beedle interview:CFO part of problem? Part one.

UPDATE: Cal Mtg. here's your man, Beedle, attacking any employees in 2006 who weren't backing Measure M, the bond, that was to be used to build an extension onto the hospital, and the depreciation monies were to be paid to the debt. The plans were faulty and now again, here we are after another GOB. Funny, from what I understand we didn't go after a GOB until KVHD got into the HIGH RISK revenue bond deal which has been in default for 24 years and now they have a management company trying to cut costs so we don't have to keep getting lines of credit from Cal Mtg. to move to operations where we pay off our bonds.)

"They push me, I push back harder." Chet Beedle, CFO, KVHD (regarding the employees, not Cal Mtg.)

It was June of 2006, the year KVHD was making its move to decide whether to put a general obligation bond, Measure M, on the ballot for November. It was also the year the skilled nursing facility struggled under short staffing and mismanagement, being tucked away while elections were being decided.

Chet Beedle recently announced at last week's finance meeting, that the reserve for the bond debt has been depleted and likely, come this August, more or the rest of the reserve will be used to pay the state, Cal Mtg., putting us, the district, at risk of being in default. Which could cause this state agency to come in and force a management company in to solve our problems for us.
Well, Cal Mtg. sent BRIM, never really left, they left Chet Beedle behind who came on as an official employee in 2003.

Here's a partial transcript from an interview in June of 2006, when the CFO, Beedle, was explaining the bond, the debt, the general obligation bond needed for Measure M.

The hospital had two months to get paperwork ready to put the measure on the ballot. And it would be hiring a new Director of Nursing for the Skilled Nursing facility, named Gwen Hughes, so the hospital could concentrate on its efforts to land this bond the community would pay for in property taxes.

The Revenue Bond is borrowed on future revenues

Laura: any idea whether retrofit versus expanding?
Chet: we don't know yet, its got to be taken into consideration, a new roof, or get into asbestos or those kinds of things.

(Beedle went on to explain the debt.)
Chet: If you just put it on the market (the hospital), you would have got six or seven million for the whole hospital. So, when you borrow 21 million dollars the basis for what you're going to do just isn't there and actaully after that they relatively lost money almost every year and up into the late 90's. Four million in one year. (he said it was caused by a capitated contract with BFMC but the story changed many times much like Ott's did.)

...so the hospital was very close in 1999 to actually make the board think they had to take bankruptcy because they couldn't pay the bills.

(Is that what we might be thinking right now, again, because of the nursing center, Sycamore management contract, legal matters, penalties, traveling nursing expenses, etc.? Are we back to that time. Is Cal Mtg. here yet? Are we ready to tackle our own investigations and not fall aside to outside state and local agencies who have not helped at all in the past?)

Chet: When you take out a 21 million dollar bond, a 21 million, one part of that bond is one years worth of pricinple and interest, you're supposed to borrow that money but put it in reserve just in case anything should happen...they didn't pay their bond payments in 1999 at all. So, all this revenue was used up and the state guarantees these bonds, and the state was relatively speaking, gonna, could have, taken the facility because they have the rights to the assets when they do this, this insurance guarantee. So, what the state did was make them hire a management company for a period of time.
(Chet said the original company the state recommended was "too expensive" so they sought out another. Hence, BRIM, management, and consultant Chet Beedle.)
Chet: So, they didn't specify what firm they needed to hire, so they decided to look at other firms and one of the firms was BRIM, and they decided on BRIM.
Laura: What did BRIM do to help the hospital. what exactly did you guys do?
Chet: Again, we put in the policies and procedures that BRIM had on the finance side, I basically got them working in productivity, I actually negotiated an agreement with BFMC, a long term pay out, or actually a reduction of half a million and then a payment of the amount that they owed. then I kind of worked on the long term debt of plan where we would make a lot of long term debt payments and satisfy the state that this was going to be okay.

Laura: what changed the debt?
Chet: What changed is actually the hospital in 2003,, actually for almost a year what happened, when the CEO that was here who decided to go elsewhere, Dave Green, Pam applied for the job. She was interim about, I want to say, four months or so and then the board decided to hire her as permanent CEO, she actually worked on the side of revenue, I was here day to day on the expense side or the cash purchases and recievables side, and just tried to do a better job of collections and a better job of how we paid our bills and how we managed our cash and a little bit at at time, it takes a long time.
(Chet said the hospital began to get better and he came on as CFO in 2003. And BRIM left in 2004. He left out the part about having to acquire these loans he said we don't qualify for, to pay costs)
Chet: The board agreed, BRIM left, we went forward and actually from about July 2004 and on we made money every month.

MEASURE M: THE GOB BOND ON THE FAST TRACK

Laura: You have to declare the amount right for the ballot prior to the measure going on the ballot?
Chet: You have to to know what percent, the amount that goes on the ballot has to be based upon what you're going to recieve, the answer is yes.
Laura: But you'd have to have this all in by August, which would mean July willl be a very long month.
Chet: Very definitely. I'm not sure that the declaration on the 6th of August I think it is has to state all of the specifics, you have just have to tell them that you're to go on the November ballot, the specifics maybe able to come later if you know what I'm saying.
Laura: And you'll need the specifics right away, you've worked with an architect so far?
Chet: We have an architect we have been using, for, we haven't done a lot with them, but yes, uhhu.
Laura: Is that the one with the Rural Health Design Network, with the Yarboroughs?
Chet: uhu, that's the one we've been using. However, when we get ready to go for the bid on the architectural drawings, for let's say we're going to do a new building, or partial building, okay? Because it's greater than 25 thousand we actually have to go out for a bid, that's by statute, we will go out to bid with various architects out there. You have to get bids in after going over 25 thousand dollars.
(Well, amazingly, the contract went to the same architect firm associated with RHDN. They did drag in two other bidders, but Mr. Jamison, Mr. Armstrong, and Barbara Casas all saw that they should stick with Aspen Street Architects. Sticky board members and sticky organizations. Considering the final product, the plans, were of no use, except to have the hospital pay to have them drawn, it was a waste.)

Why do we need a general obligation bond?

Chet: The hospital could not really go out and borrow more money, we've just been through this long story that they probably borrowed three times more than the hospital is worth and that they paid for, so the situation is, no one at this point would lend the hospital more money on the hospital, even though our financials are good, we still have that big amount of debt already out there and so the simple fact is the hospital cannot go and borrow any money on its own. the only alternative is if it's going to do something as far as a construction project, I, any, whether its retrofit, whether it's new, whether, it doesn't make any difference it has to go through a tax obligation because that's the only vehicle that creates new money into the organization, you can't borrow that money okay?Yeah, there's enough money to pay that outstanding debt even though its extra high from before, and there's enough money for us to make a profit and pay our bills, but there's not enough money to do construction. So, that's the only way it could happen.
Laura: So, as of right now, you're able to make those yearly payments on this revenue bond?
Chet: Oh, yeah, we've done it all along, actually ever since 1991 they've been making all those payments except for one year. (According the contract the monies paid are supposed to be made from the earnings from the project. Paying from loans, shorting staff, trying to build a building quickly so he can use the depreciation to pay Cal Mtg. is not something he was sharing back then)
Laura: As far as the SNF goes they started out with 150 beds and I'm sure they made projections on filling up 150 beds...
Chet: you bet.
Laura: So, when they got into trouble and couldn't build that many beds, that's where the real trouble started for the hospital?
Chet: That plus the fact, that even the structure itself that they did build they probably paid twice what they should have paid, because all of the changes, because of the resizing, so they really spent 21 million on a 13 million dollar building if you really want to hear what I'm saying.
Laura: Yeah, I do. (Where the hell were you OSHPD and CAL MTG.?)

(Beedle speculated that they would have been able to utilize the money from the new building for expenses, and retrieve monies from Medicare for the depreciation. There was a lot of hope that this bond would go through.)

(However, the hastily thrown together 12.5 million dollar figure that was supposedly with a two million dollar buffer, was admitted to having been too little money anyway. The hospital would have been forced to come back to the community on it's original plans for another bond. But in the end the whole conception was incorrect. The plans were unusable. Former KVHD Chairman, Brad Armstrong, vehemently denies any wrongdoing on the part of his board quorum to this day.)

Forcing the Issue

August 2006, the board proceeds to move forward on the bond, which has a tentative price tag, and faulty plans. At the same time, things are not going well in the SNF, staffing was cut, nurses worked while sick and burn out, but the bond was going to the community.

And when the employees complained that there were internal problems, the CFO, CEO, CNO, and human resources set out to show down with their own staff by supplying quotes and human resources documents.

In a separate audio interview coming up, Chet Beedle said, "They push me, I push back harder." (employees)

Next up: going for measure M, employee intimidation, the loss, internal investigation

BREAKING NEWS: KVHD former CEO, PAM OTT, INDICTED

Sources say Pam Ott will be in court this week to face charges in the elder abuse cases involving her time as administrator/CEO of the Kern Valley Healthcare District.

After months of waiting to see if the California Department of Justice, Attorney General, Edmund G. Brown Jr., agents from Medical Fraud and elder abuse, could bring truth to the case against the district, it looks like a new defendant, former KVHD CEO,Pam Ott, will most likely be facing a judge this week.

Although Ott is one of many responsible for the chaos and system breakdown which took place at the KVHD nursing center, and one of several administrators who fled the scene as civil lawsuits, threats of closure and exposure, were looming in 2007.

But Ott was the leadership, and it was the leadership who tried to escape responsibility for their actions blaming it on others, covering tracks and creating scapegoats.

More than two years after, Kern Valley Healthcare District, CEO, Pamela Ott, resigned during the crisis in the skilled nursing facility, sources say that Ott will be in Kern County Superior court on Tuesday, Sept. 8, to face her indictment and responsibilities for her part of what happened at KVHD in 2006/2007.




With an on-going state investigation netting enough evidence to bring Ott back to Kern county where she originally fled from as the KVHD nursing center was on the verge of closing because of poor practices, possibly lack of knowledge, but certainly lack of oversight by the hospital's administrative team.

The original three indictments, from Feb. of this year, but regarding the time period of Aug. 1, 2006 to Jan. 25, 2007, of Dr. Hoshang Pormir, Gwen Hughes, Director of Nursing and Debbi Hayes, Pharmacist did not fit the evidence of those closest to the situation.

The administration led by Ott, ignored or punished negative information from the employees, the press and residents of the Skilled Nursing Facility as investigators from the state's Medical fraud and Elder abuse Bureau of the Department of Justice set upon the hospital.

Recently, things began to change in regard to the investigation, and on August 14, the state put another charge onto the pharmacist, for conspiracy, injurious to the public. Hayes, plead out on the count, receiving a one year suspended jail sentence, and three years probation along with community service.

The Pharmacists role in the upcoming court hearings is still speculation, but she may end up as a witness in the case. Nothing solid on that yet.

Though the Department of Justice is quiet as to its intentions, waiting until late Friday, as the Kern County Superior Court website showed a "new" item on its calendar for Sept. 8, when Dr. Pormir and Gwen Hughes have scheduled pre-prelim hearings, there was a third item: Motion to amend complaint.

Calls and emails came in asking me about this, and finally, with some certainty, we have learned that Pam Ott has been indicted. At this time we don't have the exact charges, but will get those to you after the holiday.

We will be in court on Tuesday, Sept.8, and we will have our cameras.

As to others who still linger at the hospital, there is no word, if there any other indictments coming up. We will be watching closely.

But I would say to the state, and its investigators, that Ott has been gone for two years, yet the problems remained. The nursing facility was reputed to be short staffed again, and high priced contracts, costing the hospital almost three million dollars, did not solve the problems.

Chief Financial Officer, Chet Beedle, has repeated many times since 2007, that the hospital has never been short staffed. Though he recently admitted to the fact that LVN's and RN's were supposedly doing the work of nurse's aides, who spend most of their working hours in direct contact with the residents, and some strongly disagreed with Mr. Beedle's observations.

In 2006, Ott, Beedle and Bob Jamison, indeed lead this community on a wild goose chase for a general obligation bond that would have not sufficed, and architectural plans that were not workable, and finally, watched the staff shrink in the nursing facility, care for residents compromised, then directed a stranger, a new director of nursing to order whatever pharmaceuticals she wanted, as Gwen Hughes was supposed to have years of experience regarding chemical restraints.

Documents from the hospital showed that Ott signed off on the skilled nursing facility annual surveys, yet, the state allowed her to get away with some serious stretching of the truth about the actual problems.

Including short staffing. Click on document to read.

Employees claimed to be harassed and frightened, and most certainly overworked, dominated by an administration which stuck together refusing information about what was truly going on at the district.

And board members who hired Ott, with credentials from a diploma mill, appear to have allowed her to run roughshod over the district, employees, residents, patients, and even doctors.

The day after Ott stepped down, board member, Brad Armstrong, allegedly went into Ott's office, closed the door behind them, as human resources manager at the time, Michelle Rosado, fired several employees who were obviously thought to be a threat.

On that same day, Heidi Sage, Administrative Assistant, who worked in the CEO's office, was not at work while the terminations were taking place. Sage's mother, Tish Orr, who is a witness in the indictments, and someone I interviewed, went out on stress leave, because of the lack of help with the situation in the nursing center.

Armstrong has never answered to any questions regarding his role in the skilled nursing facility systems which failed. Or the short staffing where only the employees would say that they were not adequately staffed, and therefore care was compromised, but not the former chairman, Armstrong.

The twenty year board member (and that's what term limits are about folks, do you want 20 years of the same mistakes and attitude, or just 8?)

Armstrong, had an opportunity in 10/2006 to listen to the employees and order an investigation. But the chairman treated it like a mutiny, chastising the employees for not going up chain of command. Though the employees said they had already been to the CNO, Sharon Brucker, and Pam Ott, with Armstrong and the board, the open door policy slammed on their fingers.

This man, Bob Jamison, board member and local radio star, used blogs and his radio show to attack those who would believe that there were serious problems at the hospital.

He allowed, the now indicted, CEO, Pam Ott, to come for an hour on his talk show to give her side of the story. (See "Here's your witness Jerry Brown: Ott on QAB)

I asked Mr. Jamison at the last board meeting this month if Ott was indicted if he would take her back to the radio station and defend her.

His answer was just to stare at me.

My hope is that we clean out all the dirt, and that the people I have mentioned throughout this blog be put under oath and then tell their stories under the penalty of perjury.

This hospital needs to heal, Ott's indictment is a good start. But there are others who need to face their participation in the situation. Hopefully, in court, but if not, then there must be other ways to deal with them.

More info and pics to come...Will keep you updated.