Hospital critics present anti-Triad case

MAT-SU -- Hospital critics presented their reasons for Valley Hospital Association members to reject a joint venture offer from the Texas-based Triad Hospitals Inc. last week. VHA paid for meeting space for four gatherings after some members who are critical of the venture requested a chance to give their point-of-view.

The presentations were led by local minister Howard Bess. The speakers were Bess, Matanuska Telephone board member Katie Hurley, Matanuska Valley Federal Credit Union general manager Al Strawn and Janet Kincaid, the owner of Colony Inn in Palmer.

Bess delivered an emotional appeal to vote against Triad's offer. He first read a report that he wrote after completing research on the Internet. Bess pointed out that Triad is only three-and-a-half years old and a spin-off of the once mammoth hospital operator HCA. Bess then claimed there were links between Triad and questionable business practices that HCA and its predecessor Columbia/HCA were accused of -- including Medicare fraud.

VHA management has written statements and advertisements that say no one at Triad was involved in Columbia-HCA fraud investigations, that only two HCA employees were ever convicted as a result of the Medicare investigation and that both convictions were later overturned.

"We're getting inappropriate comparisons -- illegitimate comparisons to MTA, we're getting character assassination of our board members and we're getting mis-information and untruths that can't, in fact, at all be validated by facts. So we have some real problems with the information that Howard [Bess] is presenting," VHA spokesperson Elizabeth Ripley said.

"It's a focus on the state of big business in America and virtually no information about Triad," she said.

Bess is a supporter of abortion rights and called for a healing to the "moral ownership" of the hospital, which he said was damaged by recent battles over abortion.

"What neither side knew was what that battle would do to our community," Bess said. He then offered an apology.

"I am deeply sorry for the role I played in the destruction of the moral ownership of the hospital," Bess said.

Strawn's presentation steered clear of criticizing Triad or its board members. He offered an alternative to the joint venture -- sell VHA's assets to the highest bidder and deposit the earnings into the recently formed Valley Hospital Foundation, which the hospital board and membership recently created to do good works in the

community.

"I'm not against expanding the hospital, I simply don't want to give up more than 50 percent. If that proves impossible, my preference would be to sell it outright," Strawn said.

The joint venture would build a new hospital to replace the one in Palmer. Triad has said it will provide $75 million toward the venture, VHA will provide its current assets, which Ripley has said to be worth between $20 and $25 million.

A valuation of VHA will take place if the members vote to proceed and VHA's ownership share of the joint venture will be based on that. VHA would certainly be a minority owner but would have 50 percent control over its board of directors.

In order for VHA to remain a nonprofit, the IRS requires the joint venture board to utilize block voting, according to information from VHA. The joint venture's board will be split between VHA and Triad members and majority votes from both blocks will be required before profits or other assets are distributed or divided by the two owner companies.

After the fourth and final community meeting, hospital spokesperson Elizabeth Ripley said the presentations were likely good for the community.

"We did this in good faith, because it is a credible process. It was a very positive thing," Ripley said.

Triad's offer was solicited by VHA. The VHA board of directors voted unanimously in September to ask its members to approve the joint venture deal. The hospital has been looking for a large capital partner for at least two years and the board of directors has met with nine potential partners, according to VHA.

Hospital members will vote on the issue at a special meeting Thursday, Nov. 14.