ROGER MONROE
If we’re to believe WCBU-FM, and there’s no reason not to, Methodist, Proctor, and Pekin hospitals have been transferred by Unity Point Health of West Des Moines, Iowa, to Carle Foundation of Urbana for $75 million. The deal, which Unity Point Health is calling “an agreement,” is pending approval by the Illinois Health Facilities Authority.
There is confusion about the agreement raising a multitude of questions. Unity Point says it signed a “strategic affiliation agreement” that will build deeper and broader services in the community, but did not explain how.
In an unsigned internal memo, Unity Point officials call the agreement a “partnership” with Carle and two sentences later state, “this acquisition is made possible through funds set aside to support strategic initiatives.” The memo also refers to “the acquisition budget.” Quoting another section of the internal memo, officials said, “After the deal closes, Unity Point Health-Central Illinois and its subsidiaries would become a part of the Carle System through a member substitution from Unity Point Health.” Sounds like football.
What is member substitution?
What we do know is with approval by state review, members Methodist, Proctor and Pekin hospitals will have new signage acknowledging ownership by Carle.
What we don’t know is why Unity Point Health is going to receive $75 million. Dr. Keith Knepp, president and CEO of Unity Point Health-Central Illinois said, “This is not a traditional purchase arrangement where those assets are being bought and sold by the two health systems. Rather, there’s some financial consideration to account for the needs of each organization.”
I asked some people who know finance and they were unable to explain what Knepp said, other than to suggest the CEO needs to define the financial considerations. They also asked what is the $75 million for if not the Unity Point assets?
I have a deep love and affection for Methodist Hospital and its employees. Both our sons were born there. I’m a long-time Methodist. My wife and I were married in a Methodist Church. From March of 1968, to August of 1993, I served in administration in public relations and marketing.
I wrote a history based on reading months and years of trustee meetings. The hospital and its nursing school opened in 1900 thanks to Methodist Episcopal Deaconesses Lucy Hall, Minna Kay Riggs and Ida Mae Phillips. The first administrator was the minister of the local Methodist Church. Trustees were Methodist clergy and church members.
That’s how the hospital functioned for decades: It was owned by the Methodist Episcopal Church. Even in later years after the church decided to hire a professional administrator, the board of trustees had oversight. There were 36 trustees. Half were to be Methodist ministers and half Methodist members. Chairing the board were people like Dr. Ira Galloway, directing minister at First Methodist Church. Others included Merle Yontz and Ellen Derges Foster, both First Church members. With the arrival of the late Jim Knoble as CEO and President, by-laws of the trustee board started to gradually change and soon the Methodist Church’s control and ownership ended.
That leads to more questions. When Unity Point took over Methodist Hospital, was there a purchase agreement? Who got paid? How much was paid? If Carle is paying $75 million for property (Methodist, Proctor and Pekin hospitals) worth an estimated $355 million, is that an acquisition that’s fair and equitable or just a “good deal” for Carle? Or is it?
Rumor is hospitals are struggling financially because of poor and delayed payments by state and federal governments for Medicaid and Medicare services. Why is a large and relatively successful hospital organization like Unity Point Health operating in Illinois and Iowa so eager to transfer Methodist, Proctor and Pekin hospitals to a small health system like Carle Health?
Is this a subject worth discussing? I suggest it is because the future of the three hospitals defines the future of healthcare in central Illinois. OSF St. Francis Health is large and getting larger, but bigness never necessarily equates with unequal quality or the best.
As former hospital administrator Norm LaConte used to say, “Proctor, one of Peoria’s three fine hospitals.” That’s what we have today. Let’s hope it remains that way regardless of who owns the three healthcare facilities and its affiliates.
AND THE WINNER IS?
Peoria County voters spoke loud and clear Nov. 8. By a margin of 70% to 30% they said eliminate the office of Auditor. Peoria County State’s Attorney Jodie Hoos took quick action and announced closure of the office as of Nov. 30.
Local media had been falsely reporting current Auditor Jessica Thomas would be able to remain in the position for the balance of her four-year term. Wrong. Hoos notified Thomas by letter she was to vacate the office. Hoos also stated any legal bills generated by Thomas after the end of November would be her responsibility.
Thomas apparently has at least one lawsuit pending against the county alleging the ballot question was illegal and unfair.
TIP OF THE HAT TO (SOME) POSTAL CARRIERS
It’s winter with cold temperatures, sleet and snow for the next four months. Working through it all six days a week are postal carriers who walk their beat, going door to door, dropping mail into porch mailboxes hour after hour. Unlike carriers in many nearby towns and cities, Peoria’s workers get to ride only to their neighborhoods.
They have it rough. I found it amusing, though I didn’t laugh, when I got a note from the Morton postal service informing me I had to not only shovel snow from in front of my roadside mailbox, but also had to remove snow yards before and after the mailboxes. That’s so carriers who sit inside their warm vehicles don’t have to get off their butts to deliver the mail. How thoughtful that they want me, at age 88, and others in the subdivision, to go out and shovel 2-4 feet drifts left behind by snow plows. I’m surprised they also didn’t ask for hot coffee and cookies. In the meantime, God bless those carriers who walk their routes.
QUOTE OF THE MONTH
“Let us be grateful to the people who make us happy. They are the gardeners who make our souls blossom.” — Marcel Proust
2 comments for “Straight talk: Carle Foundation gets three of our fine hospitals for $75M?”
Recent Comments
Roger- the way the head honchos at MMCI/UnityPoint have treated both patients and the local docs in our community for years is why they are tanking & going broke and having to unload all their properties in Central Illinois at fire sale prices.
They have the most ignorant set of idiots running the place – keep in mind all the recent head honchos there like Debbie Simon (a nurse that used to work on their medical floors) and the Knepp’s (general practitioner docs from Eureka who couldn’t even make a simple medical practice work) know less about running a bg business and dealing with the top medical experts in the community than my dog does.
No wonder just about every doctor who had the ability to refer his patients elsewhere, did so and their revenue and market share plummeted. They did this to themselves and their stupidity had little to do with delayed Medicare payments.
I know you have loyalty to Methodist from your time there- but isn’t al all the same Methodist you knew. It is now a weird Frankenstein monster created by the stupidity of former CEO’s like Bryant, Simon, etc who drove the entire system into the ground them blamed someone else as they got fired.
I have had my Dr. for close to 40 years. Since Carle Health took over there have been big problems. I see his old staff have been entirely replaced. It is Sunday and my Dr. office is closed. Unity Point nurses are still taking calls so I was referred to a Morton Clinic. I have an eye infection and breathing problem. The receptionist, when I arrived barked at me to go sit down. That was her greeting. When she called me up she first demanded I wear a mask and pointed to a box of them. I said I could not breathe and she said to “hold it below my nose.” Yes, you read that right. Also, there was a woman in the lounge area with a child who had a cough and neither had a mask on. She then said she had no proof of my Medicare on her computer screen and wanted to see my card. I had to set the mask down to get into my purse and wallet. She snapped at me and told me to put the mask on over my face because it is mandated. She appeared belligerent and unhinged and I asked her if masks were mandated why she was not wearing one. She said: “I am not the one who is sick.” My response was: How do I know that?” I looked at her and said: This is ridiculous and she jumped up off of her seat and loudly yelled that she would not be cussed at! She then went flying around a corner and was loudly complaining to someone about me. When she came back she stood in front of me and demanded I read “the rules.” I told her I was not interested and she could entertain herself all day reading them. I walked out the door. I just wanted medical assistance. Not some receptionist having a psychotic meltdown, lying, accusing me of cursing at her, behaving inappropriately, and creating a scene. I have never seen anything like this in a medical facility. I began looking up Carle Health online when I returned home. Ahh, now I get it. They endorse “equity and inclusion,” and that is exactly why that person is allowed to sit behind that desk at the clinic and carp, gleek, and fleer at any patient who walks through the door. In this fine Republic there is still a majority that do NOT endorse Socialist “equity,” but rather equality where rewards come from effort, respect is earned, and each individual chooses what they do with opportunities. As for the three hospitals taken over by Carle for a fraction of their worth. I am trying to do a deep dive into that. I suspect Big Pharma is what is standing behind the curtain, and a few other bad actors are involved in this investment. Kind Regards