Time-the 4th dimension. Comparing the deal in place with what would be left the day after the lease's 2026 expiration
Posted: Wed Oct 12, 2016 10:28 pm
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
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