Tense debate over hospital at work session
Aug 27, 2009 | 755 views | 4 
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According to county attorney Bill Weathington, that might be a good thing.
“St. Vincent’s may feel like they’re putting in too much,” said Weathington. “The commission may feel like it’s putting in too much. Judge Hereford thinks he’s putting in too much.
“And maybe, if everybody thinks they’re putting in too much, maybe we’ve gotten to the point that … it’s a fair deal. It may not be the very best possible deal, but it might be fair.”
Weathington’s words came in the midst of a tense work session that lasted nearly 90 minutes on Thursday. The county commission gathered to go over the numbers for the $28.4 million facility that would be located on the Jefferson State Community College campus, alongside Interstate 20.
A motion to approve a final letter of intent with St. Vincent’s was tabled from Tuesday’s regular meeting — the meeting was recessed until today at 9 a.m., when the commission will re-convene in Pell City for its vote.
“I hope St. Vincent’s does something, because the clock is ticking,” Manning said. “At 9 a.m., I will be prepared to make my vote.”
Manning has been the chief critic of the deal for a new hospital for many months now. At Thursday’s work session — which was held in the office probate judge Mike Bowling due to the large crowd that turned out — he said he still harbors strong concerns about the project, due to what he believes a lack of a firm commitment from St. Vincent’s.
“I hope to make myself clear, and I’m not … out to strong-arm anybody,” he said. “I’m here to stand here on my own, be here on my own.
According to documents distributed Thursday, the proposal calls for a nearly $20 million commitment on behalf of the county and Pell City over the next 20 years, through a combination of bond money and a $4 million loan to purchase the existing hospital and its property. The county’s Health Care Authority is prepared to commit $10 million — basically all of its monetary assets — to the project as well.
St. Vincent’s will pay $830,000 per year for 20 years, and have 9 rent-free years in the new facility. The faith-based health system has also agreed to contribute $1.6 million to the project in “fundraising and lease money.”
Thursday, chairman Stan Batemon also said St. Vincent’s might be amenable to a preferred distribution payment — a previous sticking point at Tuesday’s meeting — of $100,000 per year in years 21-29, provided a 5 percent profit margin. Weathington also said such a proposal would give St. Vincent’s the right to terminate the lease after 20 years.
Manning said he believes St. Vincent’s still has not done enough.
“If St. Clair County borrows this (bond) money and they (St. Vincent’s) bail on paying, something happens to prevent them from paying this, who stands good for that money?” he said.
Weathington said the county would, given a “worst-case” scenario in which St. Vincent’s goes out of business.
“That seems somewhat unlikely,” he said.
Batemon told Manning and the rest of the commission that he believes the deal is the best one to come along since discussion began on a replacement hospital. He also warned of the repercussions should the commission pass on the project.
“I know there’s an unknown if we have a new 20-year lease, just like there was when we had a 25 (for the existing hospital),” Batemon said. “There was an unknown when we had a 25-year lease, also. And we’ve run a hospital – that lease was a good lease when it started, but as it’s gone along, it didn’t have money in there for things like some maintenance like we’ve had.
“I do know this: I know what’s gonna happen in 11 years (when the current hospital lease expires). … Somebody will still have to come up with the money if we have a major hospital. That’s the position I can’t get beyond.
“I don’t hear an answer from anybody that tells me a better solution at the end of 11 years. I hear somebody say, ‘What if they belly up in 11 years?’ Well, what if we don’t do anything in 11 years? We don’t have a hospital.”
Both Manning and Batemon each declared their opposition to any sort of tax to fund a new hospital. Manning, however, said taxpayers will fund a new hospital under the current arrangement.
“That money belongs to the people of this county,” he said. “I don’t care if it’s coming through taxes, I don’t care if it’s coming through rent, I don’t care if it’s coming through 4 mil, I don’t care how it was created. … And 20, 30 years down the road, I don’t want to be there broke, with no way to operate or improve the healthcare facility in this county.
“I hope each of you hear what I’ve said. I want you to feel for the truth, because I’m telling you the truth that I feel.”
Weathington commended the efforts of Manning and the rest of the commission, saying the deal has improved with each negotiation.
“One thing that I guess we don’t need to lose sight of is that this deal is a much better deal today,” Weathington said. “One of those things, let me point out to you, originally this was a 15-year lease and a 15-year rental period. It’s now 20 years. It’s $830,000 per year, which, over that 5-year additional period, is an additional $4.15 million. In addition to that, St. Vincent’s has agreed to contribute through their fundraising, the other million. Just in that regard, this is a $5 million better deal.
“Also, the debt service when we started was $1.2 million. The debt service now is projected to be somewhere around $880,000. The annual shortfall of that debt service is decreased by $200,000, which over 20 years is another $4 million.
“So when you look at that, just those numbers – and there are some other differences that are improvements as well — that’s $9 million difference in the deal now, as opposed to about 6-8 weeks.”
Commissioners Ken Crowe and Jeff Brown were mostly silent during the work session, and neither commented once it ended. Commissioner Jimmy Roberts said he hoped the commission wouldn’t lose sight of the humanity involved in the deal.
“I listen to all these figures, and whether we’re getting a good deal or not – I think we are,” he said. “But we can’t take the human factor out of the thing. Our citizens deserve the best healthcare that we can provide. It’s just hard for me to put a price on somebody’s life.
“I know for a fact, when I had my heart attack, I didn’t tell them to take me to Birmingham. ‘You get me to the nearest hospital,’ and that was St. Vincent’s. It’s the reason I’m sitting up here today, is because of St. Vincent’s. That’s all I’ve got to say.”
Bill Trussell, attorney for the county Health Care Authority, was one of the many in attendance, along with HCA chairman Lawrence Fields. Trussell wanted it stated for the record that all the officials involved in the negotiation — on all sides — are in favor of a new hospital in St. Clair County.
“I have not heard one public official on the Health Care Authority, the commission or any representative in any city say they were opposed to a new hospital or a replacement hospital,” Trussell said. “The issue from the very beginning is, what would be the appropriate contribution for the parties to make. And that’s what the discussions have been about, not whether anybody is in favor or against a new hospital.”
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Aug 28 09 - 01:41 AM
As for Lee and Jake, I've never read such nonsense. Obviously you both have some inside information to make a statement like "Many restaurants have decided not to open..in Pell City". You foolishly implied corruption but its more likely the community is too small or that most commerical companies are not opening new locations? COLONIAL Properties???...pure comedy.
For the past 20 years or more I have been deeply involved in Industrial Development in Pell City serving on the IDB board and serving as its chairman for several years. Ride thru the industrial parks and look at all the jobs these parks provide for the community. We sweated and agonized over each of these projects. Were we doing too much, were we giving away the city? I believe in the final analysis that the work has been worthwhile. Almost every company who has moved here has been a success with many of them doubling in size. Where would we be if there hadn’t been some leaps of faiths on the part of City leaders to help Pell City grow? The structure of the leases for the hospital has been modeled after the structure that was used to develop the industrial parks in Pell City. The structure works.
There are two questions everyone wants to know before moving to a community. How good are the schools and how good is the health care. Right now the staff at the hospital does an excellent job with what they have. The vast majority of the people who use the hospital give the staff at the hospital excellent ratings. They also give the facility bad ratings. The building is simply not adequate for today’s needs. When you recruit new doctors, they love the community but they see the 1968 operating room and say I don’t think this is the place for me. A new facility will attract new doctors with the specialties we need for a growing community. Today there are 5 beds in 3 emergency rooms. The volume in the ER is 4 times the design capacity. Is there any doubt that you have to wait for hours before you see anyone? This may be OK for some of the commissioners but is certainly not OK for the majority of the community.
One of St Vincent’s missions is to care for the poor. Last year St Vincent’s provided over $3,000,000 in charity care for St Clair County. Paul Manning doesn’t believe that St Vincent’s is putting enough money into the deal. I don’t know how you look at it but $3,000,000 times 29 years is a pretty big number on my calculator.
This deal is larger than just the hospital. VA based their decision on locating a new facility in Pell City on the fact that a new hospital was being built. Is there a danger of losing that project? I know the calls I would be making if I was the runner up city with a modern hospital. Much of the growth at the Jeff State Campus is based on all of these projects taking place. If the hospital is killed there is a real possibility that $50,000,000 of new construction will go away along with several hundred jobs. The property this project is to be built on is currently growing trees with very little tax base. In 20 years there will be large development around the hospital all paying taxes and providing jobs for the community.
I urge the commissioners to do the “right thing” and vote for the growth of the community.