Time-the 4th dimension. Comparing the deal in place with what would be left the day after the lease's 2026 expiration

[David Anderson]

Much time passed from 1996 to 2005 and from 2005 to 2014. The Lakewood Hospital Association's consultant, Subsidium, reported that LHA would be out of resources well before 2020. Huron said this date may be closer to 2022. Regardless, the lease was up in 2026 and there were no plans on the part of LHA or the Clinic to invest heavily in capital expenditures. Many were in the room during one of the more than 50 public hearings held in 2015 when this point became crystal clear. I came to the determination that this hospital has been closing for the last 10 years and patient revenues were not covering operating costs let alone allowing for the financing of $90M in capital needs to make the hospital safe and competitive. There would have been nothing left in six years or less if we sat idly by and kicked the can down the road for the next Mayor or Council. (Up to $90M was needed in 2015. I can only imagine how much would have been needed by 2026. If your house is worth $20M, $30M or even $50M but needs $90M of work, how much can you sell it for? How much is it really worth?)

In regards to the Lakewood Hospital Association replacing the Clinic with another partner, Metro was not an option. Neither was United Hospitals. SLH folks are suggesting that another outside NE Ohio hospital operating entity would come into Lakewood, replace the Clinic at Lakewood Hospital as the new partner with LHA (with the Clinic's blessing), invest up to $90M in the physical plant and operations upgrades to make the Hospital safe and competitive all without access to referrals (patients), doctors or a network of partnering hospitals with which to work (second tier pricing).

We can't compare the deal Council struck with a conceptualization of wishes and dreams because, despite the fact that every hospital/health care management entity in the galaxy knew that there was an opportunity to submit a plan to run a hospital in Lakewood, Ohio, no dream team emerged and no wishes materialized. It is far more apt to compare the deal Council struck to what would be in place the day after the expiration of the lease in 2026. In 2026 we would have had no hospital, no services, no doctors, no guarantee of a Clinic investment in a fully separate facility and certainly no LHA/taxpayer assets to leverage and reinvest for the betterment of the physical and economic health of our city.

Reasonable people can disagree and, honestly, I am a bit embarrassed at reading a couple of snarky comments I made toward Mr. Essi. (But, I'm only human and can only be called immoral, unethical, criminal, dumb, a money launderer, etc. without trying to exact a bit of revenge.) However, the bottom line is the bottom line. The business model by which this hospital was operating and the market in which it was operating was not allowing it to generate the patient income needed to sustain the hospital. The Clinic was not obligated to subsidize these losses or capital needs to any real extent.

We replaced, what is now considered as convoluted, the City, LHA, Clinic relationship (which, to former Mayor Madeline Cain's credit, served Lakewood well for 18 years - thank you for talking these issues through with me on your front porch and at Blackbird Bakery in 2015, Madeline) with a partnership by which the Clinic invests its own $49M, accounts for the disposition of $128M of taxpayer assets, brings 21st Century health care to Lakewood along with a fully accredited, fully functioning 24/7 Emergency Room operated by a globally recognized preeminent health care provider. It also guarantees that the 24/7 Emergency Room remain fully functioning for as long as the Clinic operates the Family Health Center. If the Clinic decides not to operate the FHC in the future, the City has first rights to the state of the art FHC and ER facility and would be in a strong position to find a new partner. However, I do not see that scenario coming to fruition at all as I believe the Clinic as committed to Lakewood for the long term. Finally, there is more than enough bridge funding to see the City to the development of 5.7 acres in the middle of our our city and the return of this 5.7 acres to tax generating, school supporting, economy reinforcing status.

Now we can continue with conspiracy theories and allegations of backroom development deals, money laundering, etc. But City Council got real serious real fast when this issue was brought before us in January of 2015. We weren't perfect and we fought a bit among ourselves along the way. ("Healthy disagreements," perhaps.) Also, the deal we struck, executed and are legally/contractually obligated to continue to execute (cannot be reversed) isn't perfect but is more than fair, accounts for taxpayer assets and, just as importantly, paves the way for the provision of 21st Century health care in a state of the art facility in Lakewood for years to come all without taxpayers being asked for one thin dime and while shedding $90M in liabilities in the form of decaying buildings and a crumbling parking garage.

David W. Anderson
Member of Council, Ward One
216-789-6463
davidwanderson@lakewoodoh.net

[Bridget Conant]

Many were in the room during one of the more than 50 public hearings held in 2015 when this point became crystal clear.

Really?

When did these occur?

Public hearings?

[Corey Rossen]

Many were in the room during one of the more than 50 public hearings held in 2015 when this point became crystal clear.

Really?

When did these occur?

Public hearings?

Strange how this is all you take from this.

[Robert Bobik]

"legally/contractually obligated to continue to execute (cannot be reversed)"

Was not the original lease agreement reversed?

[David Anderson]

Ms. Conant -

City Council held over 50 public hearings on this issue not including the regularly scheduled City Council sessions every other Monday.

CCF's Dr. Jones was asked specifically by me at one of those 2015 hearings in front of about 120 residents to comment on any potential or draft capital improvement plan developed by LHA and the CCF for Lakewood Hospital. The answer was that there had not been any potential or draft plan since about 2007 and that none was being contemplated currently.

David Anderson
Member of Council, Ward 1
216-789-6463
david.anderson@lakewoodoh.net

[Kate McCarthy]

Councilman Anderson,

Were any other entities given the opportunity to bid on providing a family health center and 24/7 ER?

Also, please explain the necessity for a non-compete clause on the hospital property.

Thank you.

[Lori Allen _]

Kate,
I believe that a publicly owned asset, according to the law, has to be put up for open bidding. We all know that this was never done. I believe there were four other health care providers interested in bidding, but it appears that Summers and Council shut them out. I believe there was no intention of ever opening the sale up for open bidding. It appears that Summers, Council, and the rest of the Extended Family knew what they were doing was an alleged crime. I believe they thought that everything would go unnoticed. They never counted on there being thousands of Lakewood Citizens that would fight for their rights!

[Marguerite Harkness]

It was QUITE a revelation to us, when we asked why Metro's RFP response offering a FULL IN-PATIENT HOSPITAL, was rejected, in favor of Cleveland Clinic's RFP response offering only a Family Health Center --- and the Mayor replied "They didn't both respond to the same RFP." OH - OH - OH - OH - OH!!!!!!! (That's me catching my breath!)

THAT was when we learned - ONE RFP went out to various hospital systems requesting a proposal for a full hospital, and ANOTHER RFP went out ONLY to Cleveland Clinic asking ONLY for a Family Health Center.

This double standard was hidden from us for over a year.

Besides those "50 public hearings", this was probably decided in those 50 PRIVATE hearings in "Committee of the Whole" meetings that dissolved into private "Executive Sessions" from which the public was excluded.

Metro came to the (correct) conclusion that Lakewood Mayor wanted a FHC with the Cleveland Clinic, and NOT a full in-patient hospital with anyone else.

The Mayor insisted on the non-compete clause. The Clinic could have been satisfied without that restriction (Dr. Donley deposition).

We have been LIED TO - AGAIN and AGAIN and AGAIN.

[Bridget Conant]

The Mayor insisted on the non-compete clause. The Clinic could have been satisfied without that restriction (Dr. Donley deposition).

That stood out in the deposition.

WHY would the mayor insist on a non-compete clause when CCF didn't feel it was necessary.

[Dan Alaimo]

The Mayor insisted on the non-compete clause. The Clinic could have been satisfied without that restriction (Dr. Donley deposition).

That stood out in the deposition.

WHY would the mayor insist on a non-compete clause when CCF didn't feel it was necessary.

In my opinion, for the sake of the land developers.

[Lori Allen _]

I believe that there was a definite advantage for Summers and Extended Company to make this deal with CCF. I suspect alleged money laundering. Still working on a few more facts before posting.

[David Anderson]

Mr. Bobik -

You asked, "Was not the original lease agreement reversed?" This is a fair question. All parties must agree to change a contract. One side can ask for the terms to be renegotiated but can't force the other side to do so.

Ms. McCarthy -

Your comments regarding other entities and the non compete clause are also fair. The RFP process was the Lakewood Hospital Association's alone. City Council was not involved in 2014 as all issues regarding the management of the hospital were with LHA and its partner the Clinic. Council's consultant during 2015, Huron, reported that LHA's process was not perfect but not fatally flawed. Again, though, the RFP process was long before this issue came before Council in January of 2015. City Council had no authority or standing to submit an RFP on behalf of LHA.

I am not sure of the context of Dr. Jones's comment, but, I assure you that the non compete clause for the hospital site was a non negotiable for the Clinic in October, November and December of 2015. However this non compete does not apply to anywhere else in Lakewood including the Women's Health Center attached to the other side of the parking garage.

David W. Anderson
Member of Council, Ward One
216-789-6464
David.anderson@lakewoodoh.net

[David Anderson]

Ms. Harkness -

Like it or not, Metro pulled out. In my opinion, Dr. Butros was way out in front of Metro's Board on this and certainly did not have the support of the County Council or Executive. Some might have seen the PD article from a few weeks ago reporting that the County faces severe limitations in its bonding capacity to finance the paving of county roads. How was the county going to finance major upgrades needed at Lakewood Hospital and an expansion into Lakewood described by some at Metro as "swing space" while already building bed-less centers in other parts of the county.

An honest question here - Would you have rather had a Metro Family Health Center over a Clinic FHC? Reasonable minds can come to that conclusion. Personally, I would rather have an entity that could put its own $49 million in its own facility. Regardless, a full service hospital run by Metro for the next generation in a 100 year old building that needed $90 million in repairs and upgrades was not an option before Council and was never put before Metro's Board or County Council for any formal, deep discussion.

David W. Anderson
Member of Council
216-789-6463
David.anderson@lakewoodoh.net

[Kate McCarthy]

I am not sure of the context of Dr. Jones's comment, but, I assure you that the non compete clause for the hospital site was a non negotiable for the Clinic in October, November and December of 2015. However this non compete does not apply to anywhere else in Lakewood including the Women's Health Center attached to the other side of the parking garage.

David W. Anderson
Member of Council, Ward One
216-789-6464
David.anderson@lakewoodoh.net

It's Dr Bronson and he stated this in his deposition ... that the Clinic backed off requiring a restrictive covenant. The discussion is on pages 238 to 241 of his deposition. Was there any concern that this restrictive covenant could subsequently be found illegal? I cannot see how the restrictive covenant in any way serves the public's interest and in Mayor Summer's deposition (pp 231-234) he seems to acknowledge that this covenant only serves to protect the interest of the Cleveland Clinic.

[Bridget Conant]

in Mayor Summer's deposition (pp 231-234) he seems to acknowledge that this covenant only serves to protect the interest of the Cleveland Clinic.

Exactly right.

So why is it in there? Why did the Mayor insist on the non-competitive, restrictive covenant?

That's not good business.