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
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