Lakewood Hospital Foundation Assets To Be Transfered to Cleveland Foundation

[Bill Call]

If the Lakewood Hospital Foundation dissolves before Lakewood Hospital closes the assets of the Foundation are transferred to Lakewood Hospital. The Hospitals rights to the Foundations assets are listed in the Hospital financial statements as "interest in Lakewood Hospital Foundation". That interest was about $32 million in 2013.

Mayor Summers has agreed in principal to transfer those assets to the Cleveland Foundation. The City of Lakewood will received nothing.

This deal gets more insane with every passing day.

Why not close down the Foundation and transfer those assets to the Lakewood Hospital Association? If the Hospital closes those assets become City property. If the Hospital remains open those assets could be used to support Hospital improvements.

Someone is in a big hurry to give away City assets.

[Meg Ostrowski]

If the Lakewood Hospital Foundation dissolves before Lakewood Hospital closes the assets of the Foundation are transferred to Lakewood Hospital. The Hospitals rights to the Foundations assets are listed in the Hospital financial statements as "interest in Lakewood Hospital Foundation". That interest was about $32 million in 2013.

Mayor Summers has agreed in principal to transfer those assets to the Cleveland Foundation. The City of Lakewood will received nothing.

This deal gets more insane with every passing day.

Why not close down the Foundation and transfer those assets to the Lakewood Hospital Association? If the Hospital closes those assets become City property. If the Hospital remains open those assets could be used to support Hospital improvements.

Someone is in a big hurry to give away City assets.

Bill,

I am confused. According to buildlakewood.org, a new hospital will replace the current one. Why wouldn't the assets transfer to the new hospital for improvements? Or is that what they think they are doing?

From their website:

Q: What is Build Lakewood?
A: We’re a group of fellow Lakewood citizens who support the development of a new Lakewood Hospital ER & Family Health Center by the Cleveland Clinic in Downtown Lakewood.

[Bill Call]

I am confused. According to buildlakewood.org, a new hospital will replace the current one. Why wouldn't the assets transfer to the new hospital for improvements? Or is that what they think they are doing?

From their website:

Q: What is Build Lakewood?
A: We’re a group of fellow Lakewood citizens who support the development of a new Lakewood Hospital ER & Family Health Center by the Cleveland Clinic in Downtown Lakewood.

You would think the lies of Build Lakewood would have sunk their campaign. But no, the lies worked well.

It is difficult to determine the motivation or goals of Build Lakewood and Mayor Summers because of all the secrecy surrounding the hospital issue. We are left with speculation. I always thought that calling the new medical office building a Hospital was based on their desire to maintain some control of the Foundations assets. No Hospital, no Foundation.

The Mayors support for the transfer of the Lakewood Hospital Foundations assets to the Cleveland Foundation is evidence that they no longer care about the Foundations $32 million; or maybe they never cared.

The plans of Mayor Summers and Build Lakewood are the real mystery. What do we have so far?

Lose 1,500 jobs.
Lose hundreds of millions in economic activity.
Lose $1 million in rent.
Lose $1 million in income tax revenue.
Lose quality health care in Lakewood.
Lose $32 million in foundation assets

and

Sell the Columbia Road building at a 50% discount.
Demolish a perfectly good parking garage
Demolish the new emergency room
Demolish the Hospital
Demolish the existing family health center
Demolish the existing medical office building

All for

A small medical office building on the corner of Belle and Detroit.

Can someone from Build Lakewood please explain why this plan makes any sense?

[Brian Essi]

If the Lakewood Hospital Foundation dissolves before Lakewood Hospital closes the assets of the Foundation are transferred to Lakewood Hospital. The Hospitals rights to the Foundations assets are listed in the Hospital financial statements as "interest in Lakewood Hospital Foundation". That interest was about $32 million in 2013.

Mayor Summers has agreed in principal to transfer those assets to the Cleveland Foundation. The City of Lakewood will received nothing.

This deal gets more insane with every passing day.

Why not close down the Foundation and transfer those assets to the Lakewood Hospital Association? If the Hospital closes those assets become City property. If the Hospital remains open those assets could be used to support Hospital improvements.

Someone is in a big hurry to give away City assets.

Bill,

I am confused. According to buildlakewood.org, a new hospital will replace the current one. Why wouldn't the assets transfer to the new hospital for improvements? Or is that what they think they are doing?

From their website:

Q: What is Build Lakewood?
A: We’re a group of fellow Lakewood citizens who support the development of a new Lakewood Hospital ER & Family Health Center by the Cleveland Clinic in Downtown Lakewood.

Bill,

I don't know your source on this, but Lakewood Hospital Foundation has a big chunk of "restricted" money--that is money that donors earmarked to the hospital. Back in April, Kristen Broadbent (LHF administrator) told me that LHF would need to get permission from the Ohio Attorney General to repurpose those funds. I've also heard along the way in this ordeal that the Cleveland Foundation wanted more control than the LHF folks were willing to give up. LHF currently relies on CCF for all of it compliance and reporting work--hence Mrs. Broadbent has a ccf.org email--they need to partner with an organization with infrastructure that ca handle the compliance or bring it in house.

I've been operating on an assumption and Mayor Summers' words that folks at LHA and LHF still want to "control the money"--this way they retain their perceived or real status, power and livelihoods.

So if your source is correct, even Lakewood's Sudo-Elite are being decimated and running scared by the wrath of the Predator and our foolish and shortsighted Mayor.

The Predator's divide and conquer strategy is in full swing.

Meg,

I have a problem getting past your premise that the BLers "think"---I just see a herd of "easy" buttons that the "leaders" push. The sheep can't see the slaughterhouse ahead.

[Jim O'Bryan]

Brian/Bill

I am confused on why Mayor Summers would have anything to do with the Lakewood Hospital Foundation and what they do. Are you sure of that?

The reason I ask is if it was illegal for Mayor Summers and his wife Wendy to be on LHA and LHF, how would it be legal for him to be on both?

When I spoke with Ken Haber back in January, he made it clear that LHF funds would be held by the Cleveland Foundation while they sort out what can be re purposed and what cannot. The biggest issue is without a Lakewood Hospital, LHF has no focal point for their funding, and it has to be held somewhere.

Approximately 25% of the funds held by LHF are restricted funds. Each one has someone controlling it, and they have got to be talked to and sold on getting on board with no hospital, but giving it to another private foundation for active living and wellness.

In Ohio, PRIVATE FOUNDATIONS can do damn near anything they want with their funds, unless restricted. The range of this is from board members and employees getting huge sums of money, and or liquidating it and paying themselves to handle the liquidation, to doing what they promised. Private foundations are private.

This is my single biggest issue with all of this. Why take an estimated $70 million in assets, and give 2/3rds to a corporation that just screwed us, and the rest to a panel of people that helped them? This is what I cannot figure out about Build Lakewood. What are they building? And wouldn't it make sense to have $70 million "to build with" instead of $24 million?

Why would anyone be in favor of a "private foundation" right after we lost $35 million to one?

Just seems odd to me.

I can see hoe people hate hospitals, and love rec centers. But how does someone get excited about giving people that screwed us over our entire future?

.

[Nadhal Eadeh]

Bill,

You're spot on. I recently asked council members via email the following:

"Let’s assume that the $300 million dollar figure in lost annual revenue is correct. Here are some questions that should be asked:

1. How will $300 million taken out of the local economy impact schools? Will class sizes increase? Will we lay off teachers?
2. How will $300 million taken out of the local economy impact city workers and services (police, firefighters, etc)?
3. How will the $300 million taken out of the local economy impact the census in 2020. Will Lakewood drop below 50,000 residents?
4. How will the $300 million taken out of the local economy impact area businesses. What’s the multiplier effect of job loss?

See below for the economic impact of a small rural hospital:

http://www.hospitalimpact.org/index.php ... nst_the_im

5. With the loss of the city’s largest employer, will taxes be raised to maintain critical services?"

These are the cold hard economic facts..........whack a mole economics can't replace the loss of revenue and the subsequent job loss to the city. This is common sense.

[Brian Essi]

Bill,

You're spot on. I recently asked council members via email the following:

"Let’s assume that the $300 million dollar figure in lost annual revenue is correct. Here are some questions that should be asked:

1. How will $300 million taken out of the local economy impact schools? Will class sizes increase? Will we lay off teachers?
2. How will $300 million taken out of the local economy impact city workers and services (police, firefighters, etc)?
3. How will the $300 million taken out of the local economy impact the census in 2020. Will Lakewood drop below 50,000 residents?
4. How will the $300 million taken out of the local economy impact area businesses. What’s the multiplier effect of job loss?

See below for the economic impact of a small rural hospital:

http://www.hospitalimpact.org/index.php ... nst_the_im

5. With the loss of the city’s largest employer, will taxes be raised to maintain critical services?"

These are the cold hard economic facts..........whack a mole economics can't replace the loss of revenue and the subsequent job loss to the city. This is common sense.

Nadhal,

What response did you get from Councilmembers?

[cameron karslake]

Nadhal,

What response did you get from Councilmembers?

This should be good, as long as we get a response besides what we usually get: crickets.

[Nadhal Eadeh]

Cameron/Brian,

It's been a few days now and I have only gotten one response. A quick thank you for writing them.

On a side note, I find it interesting that the city spent:

-$500,000 on a Subsidium hospital study
-$250,000 on an additional (Huron) study

No money was earmarked for an economic impact study. $300 million is a very big deal. This will have the greatest impact on the Lakewood City Schools.

Im sure there are several prestigous Ohio universities that would be more than willing to assist city hall. Of course, it's doubtful that they want the true economic numbers revealed.

Nadhal