Did LHA Bored Board do its job?
Posted: Fri May 22, 2015 11:16 am
Is the very fact that we are even discussing the possible closure of Lakewood Hospital, a gross, public, admission of the colossal failure of the Lakewood Hospital Association board to do its job?
The LHA board should have supervised its tenant the Cleveland Clinic and required CCF to uphold all covenants in the lease which would maintain Lakewood Hospital as a profitable, fully-functioning hospital to continue serving the community.
Half of the Lakewood Hospital Association board members (including its president) and half of the Lakewood Hospital Foundation board do not live in Lakewood.
Why should folks who don't even live here, have any say in running (or closing) our hospital? They allowed Cleveland Clinic to run our hospital in such a way that it would appear to be losing money and therefore ought to be closed.
Only 5 of the LHA board members (including Mayor Summers) were on the "step two" committee that deliberated privately to recommend killing Lakewood Hospital. The other board members heard(*) only what this clique chose to tell them about the decision. (*I originally wrote "board members knew" - but perhaps nothing of what they have been told, is true, so perhaps there is nothing that they "knew." Only, what they "heard.")
The board (and we the community) were told that Lakewood Hospital would run out of money in 3 years. (Really?) If this is likely (which it doesn't appear to be), it is due to Cleveland Clinic greedily sucking out $25 million every year for administrative expenses related to regional administration, marketing (definitely not for Lakewood--haha), executive team compensation, special projects, legal fees, consulting fees, dues and licenses, travel (Dubai?), etc. - as well as Cleveland Clinic's continued misdirecting of Lakewood patients and doctors to its other Cleveland Clinic hospitals including Fairview and Avon.
If it weren't for this egregious administrative charge every year, Lakewood Hospital would easily post a substantial profit, $19 million in 2014 alone.
Lakewood Hospital's Balance Sheet is strong. Current Assets (money coming in within one year) are more than two-times the Current Liabilities (bills coming due within one year) which is a very strong position. (It should always be more than 1.0, but for it to be more than 2.0 is exceptionally good.)
Lakewood Hospital's long-term investments are worth more than $53 million, which is stronger even than 2011 or 2010. (Say again - why should we take this money, to bulldoze our hospital???)
Lakewood Hospital Foundation's assets are worth more than $33 million. (If we bulldoze the hospital - who gets this money? A new foundation with Cleveland Clinic on its board, to "benefit" the surrounding communities - instead of our hospital?)
To all of this, Lakewood Hospital says: "The reports of my demise are greatly exaggerated."
The LHA board should have supervised its tenant the Cleveland Clinic and required CCF to uphold all covenants in the lease which would maintain Lakewood Hospital as a profitable, fully-functioning hospital to continue serving the community.
Half of the Lakewood Hospital Association board members (including its president) and half of the Lakewood Hospital Foundation board do not live in Lakewood.
Why should folks who don't even live here, have any say in running (or closing) our hospital? They allowed Cleveland Clinic to run our hospital in such a way that it would appear to be losing money and therefore ought to be closed.
Only 5 of the LHA board members (including Mayor Summers) were on the "step two" committee that deliberated privately to recommend killing Lakewood Hospital. The other board members heard(*) only what this clique chose to tell them about the decision. (*I originally wrote "board members knew" - but perhaps nothing of what they have been told, is true, so perhaps there is nothing that they "knew." Only, what they "heard.")
The board (and we the community) were told that Lakewood Hospital would run out of money in 3 years. (Really?) If this is likely (which it doesn't appear to be), it is due to Cleveland Clinic greedily sucking out $25 million every year for administrative expenses related to regional administration, marketing (definitely not for Lakewood--haha), executive team compensation, special projects, legal fees, consulting fees, dues and licenses, travel (Dubai?), etc. - as well as Cleveland Clinic's continued misdirecting of Lakewood patients and doctors to its other Cleveland Clinic hospitals including Fairview and Avon.
If it weren't for this egregious administrative charge every year, Lakewood Hospital would easily post a substantial profit, $19 million in 2014 alone.
Lakewood Hospital's Balance Sheet is strong. Current Assets (money coming in within one year) are more than two-times the Current Liabilities (bills coming due within one year) which is a very strong position. (It should always be more than 1.0, but for it to be more than 2.0 is exceptionally good.)
Lakewood Hospital's long-term investments are worth more than $53 million, which is stronger even than 2011 or 2010. (Say again - why should we take this money, to bulldoze our hospital???)
Lakewood Hospital Foundation's assets are worth more than $33 million. (If we bulldoze the hospital - who gets this money? A new foundation with Cleveland Clinic on its board, to "benefit" the surrounding communities - instead of our hospital?)
To all of this, Lakewood Hospital says: "The reports of my demise are greatly exaggerated."