Healthcare is Changing: Sale of St. John's Raises Valuation of Lakewood to Approx. $174 Million

[Brian Essi]

It is no secret that parties other CCF are interested in Lakewood Hospital. Nor is it a secret that the Predator CCF has thwarted those efforts through its control of LHA. CCF has even threatened its competitors--the FTC will deal with those ant-competitive threats and the illegal bid rigging that likely occurred in 2014 under the noses of the unwitting LHA "volunteer" Trustees.

One such party, Surgical Development Partners (SDP) from Tennessee---started discussions with Summers, et al just last month and has made an offer on the Columbia Road Property that is higher that the CCF reported offer. As of yesterday, LHA Chair Tom Gable has not formally responded to the SDP offer, but reportedly verbally told and SDP representative that the Columbia Road Property is not for sale--yet another indicia of the bid rigging and/or lack of a valid process for assessing bids.

Meanwhile, just last week, information concerning a comparable market sale of a hospital has surfaced.

http://www.crainscleveland.com/article/ ... cal-center

So, UH just paid $45.2 million for 50% of a nearby hospital---their website says they only have 221 bed licenses--less than Lakewood.

Hospital licenses are hard to come by in Ohio-----For example, based upon my initial due diligence, not too long ago, SDP spent a long time and a lot of money obtaining licenses to build and operate another hospital near Columbus.

Lakewood Hospital's licenses are not the only valuable assets in the LHA mix that are very attractive to suitors other than CCF---and it is not just the owners/operators that have an interest.

Insurance carriers are very concerned that the northeast Ohio market becomes a "two provider" town---the carriers would love to see Lakewood Hospital controlled by someone other than CCF (or UH).


The Subsidium valuation of Lakewood Hospital valued the hospital at around $70 million and is now 2 years old--the market is not static.


Using the Summers et al "healthcare is changing" mantra, Summers, LHA and City Council need to take notice of the "changes" and the fact that the CCF "low ball" non-competitive bid deal is the worst thing that can happen for Lakewood.

It would appear that the valuation of Lakewood Hospital is now closer to $90 million plus cash reserves as of 9/30/15 of $50.7 million and its beneficial interest in LHF $33.5 million.

What does the CCF get us for that $174 million in assets?

$10 million for our real estate going to CCF and unidentified private concerns and a $24-28 million "foundation" we'll all fight over but ill be controlled by CCF and elitists?

Hw does this make us the "Healthiest"?

2015 Sept 30 Lakewood Hospital Association unaudited FS - September 2015.pdf

(51.39 KiB) Downloaded 86 times

[todd vainisi]

The deal with CCF is expired and off the table, I thought. I'm hoping Mayor Summers will put his high business acumen to work and get a real deal now - hopefully one that will keep the hospital in place with the needed improvements. Unless somebody comes in with a deal for an indoor golf range - in which case I say godspeed.

[Bridget Conant]

Todd wrote:

The deal with CCF is expired and off the table, I thought. I'm hoping Mayor Summers will put his high business acumen to work and get a real deal now - hopefully one that will keep the hospital in place with the needed improvements.

Not going to happen. The mayor does NOT WANT the hospital to continue operating. Remember - there is all that VALUABLE LAND TO DEVELOP!

[todd vainisi]

Not going to happen. The mayor does NOT WANT the hospital to continue operating. Remember - there is all that VALUABLE LAND TO DEVELOP!

Frankly, I'm not sure anyone knows what's going to happen - not even Summers. Can CCF's plans be stopped by Kucinich's FCC complaints? What about the lawsuit against LHA (I think that is who is being sued) - if the defendants lose, what is the result?

[Brian Essi]

Todd,

I wish I shared your optimism and trust in the executive branch's acumen. I think that Summers is full speed ahead with demolish plans if he can get 5 of 7 Councilmembers on board.

The financial statements show a $4.5 million EBIDA loss for 2015 vs $3.39 million in income for 2014---that's a nearly $8 million swing----This is due to the premature announcement to close the hospital.

Revenues dropped nearly $19 million but CCF still paid themselves $17.7 million to manage the destruction---so CCF is getting nearly 25% of every dollar collected.

Court documents show that CCF is in full operational implementation of its planned decant---Summers, Madigan and Bullock are cheering them on while the rest of Council is getting stonewalled and told lies.

Even with all of this, the financial statements show only a $2.75 million drop in investments.

So this proves again that Bleed Lakewood has exaggerated the losses.

The hospital can easily be saved--but it can't be with the Clinic--they are done.


It will take strong leadership at City Council to do it.

I don't think Summers has the courage to change course.

[Lori Allen _]

I believe that more than likely Summers already has his five out of seven votes needed to carry out his hospital demolition deal. I believe that Dan O'Malley wants to save the hospital and Anderson is a weak maybe. Council is no longer being lied to. In fact, I believe they have known about this much longer than we think. Had it not been for the lawsuit and the presence of the assistant AG attending Summer's deposition (the one where he did not show up), this would have been shoved through a long time ago. I feel this is a catch-22, damned if they do and damned if they don't. They appear panicked and worried. My guess is because of this, they will do nothing until after the lawsuit outcome.

Let's not forget that should council pass an ordinance to demolish the hospital, I believe the citizens of Lakewood still have the ability for referendum. Do they really think that cold weather will keep us from getting signatures? In my 25 years of living in Lakewood, I have never seen what I feel to be such an uninformed and corrupt council and mayor (excluding Dan O'Malley).

We're not going anywhere!

[Brian Essi]

Lori,

I have to disagree with you.

I think that the lawsuit was important, but that was not filed until May 28th.

Summers, Madigan, Bullock and CCF wanted this done by April, but could not get it done due to thoughtful Councilmembers asking tough questions and demanding critical information.

They still don't have all the answers and it remains to be seen if they will proceed without the needed information.

I think you are selling them short.

[Meg Ostrowski]

I think you are selling them short.

I agree.

It is time to encourage, support and exercise patience with Council as they deliberate the situation without the distraction of political campaigns. With 48% for Issue 64, they likely got the message that any ordinance that doesn't satisfy those that brought the hospital issue to the ballot will do it again.

[todd vainisi]

Brian, do you have any answers to my questions about the implications of the lawsuit and the grievance filed with the FCC by Kucinich? Specifically, are either of those maneuvers able to result in blocking the Mayor's supposed plan to tear the hospital down?

[Lori Allen _]

They all supported Summers.

[Meg Ostrowski]

We're not going anywhere!

I agree. As the SAVE side recovers from the disappointment of the election, I expect they will continue the effort.

I am hopeful that once the euphoria of the election wears off on the other side, anyone who believes in keeping good paying jobs, critical healthcare services and economic activity in Lakewood will join our efforts so that we can BUILD a strong future together.

There is plenty of time, money and room for a compromise that can deliver some of what both sides were fighting for.

[Brian Essi]

Brian, do you have any answers to my questions about the implications of the lawsuit and the grievance filed with the FCC by Kucinich? Specifically, are either of those maneuvers able to result in blocking the Mayor's supposed plan to tear the hospital down?

I think the answer to your first question will come from Judge O'Donnell on or shortly after the November 19th pretrial.

I don't see he FTC acting quickly enough, but I am no expert on that government body.

Lori,

David Anderson did not endorse the Mayor.

[Lori Allen _]

Anderson was on the no on 64 postcard, however. But I don't think he was on the Summers one.