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Taxpayer's Holding the $100 Million Bag |
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Monday, October 31, 2011, 9:36 am |
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This letter to the editor appeared in the October 31st edition of the Courier-Journal
On October 19th,
the Louisville Metro Board of Public Health held a panel discussion about the
hospital merger, which gave University of Louisville Hospital, Jewish/St. Mary
Hospital System and Catholic Health Care Initiatives a chance to answer the
community’s questions. It is
commendable that these three merger partners gave the community a chance to
answer questions; however this dialogue needed to start months ago and not
after the deal is seemingly done.
With that being
said we did find out a few answers about what health care will be like under
after the merger at the University of Louisville Hospital. The first is that according to
University Medical Center president James Taylor, the hospital is “doing just
fine”. In fact, a Business First
article from July 2010, reported that the UMC posted a $15.3 million profit in
2009. After the merger where will
those profits go? Will they go
back to the University, for more care, or will those profits go back to CHI’s
Denver headquarters? Without
access to the contracts, the public will never know.
We also learned
that University of Louisville Hospital would no longer dispense birth control. The panel said that would not dispense
birth control prescriptions that are written at the hospital, but that women
would be free to have the prescription filled at the pharmacy of their
choice. What they failed to state
is that for most women, the pharmacy of choice would be the one at the
University of Louisville Hospital.
At the panel,
they stated that employees of the University of Louisville Hospital may lose
health insurance coverage of services, such as birth control, sterilizations,
and in-vitro fertilization and that new employees of the merged entity will not
have those services covered. There
is something very wrong with the fact that this merger would even jeopardize
the health care coverage of the employees of a public agency or that new
employees working at a public facility will have less access to health care.
The panel also
reported that if the Catholic Ethical and Religious Directives change, which
has happened twice since 1994 according to CHI, and services that are currently
provided by University of Louisville Hospital would no longer be allowed due to
those changes, then University could buy out its stake in the merged
entity. They reported that a third
party would determine the cost and then the University would have to pay that
amount to CHI to undo the merger.
While the merger partners have not said what that amount is, we can
expect if CHI pours in over $100 million into University of Louisville
Hospital, they will want all of their money back. As taxpayers, we would end up paying CHI over $100 million
to essentially buy back our hospital.
On October the
19th University of Louisville Hospital, Jewish/St. Mary Hospital
System and Catholic Health Care Initiative answered the communities questions
and what we found out was that women will lose critical health care services,
current employees may lose benefits, future employees will lose benefits, and
when the ERDs change again, the tax-payers will end up
holding the $100 million bag.
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