(Note: This is slightly revised from our origianl email response to clean up some typos, etc). We might add more information soon.
Tavares, FL - Nov. 4, 2011 - This is my reply to emails today from the Eustis Chamber of Commerce to their members where you sent out a biased flyer from the President of Waterman Hospital regarding his efforts to KILL upcoming proposed taxpayer reforms for the North Lake County Hospital District. You included a biased petition in the original email, and then after receiving complaints, won’t send out another viewpoint until Monday after uninformed readers might react to the biased email. On Nov. 9th, at 5pm, in the Lake County round administration building, the Lake County Legislators Delegation will hear arguments for and against implementation of proposed tax reforms from Rep. Larry Metz. You sent out an email that is biased towards only one viewpoint.
If you are going to send out BIASED political information, you should include BOTH sides in the SAME email, and not split them up.
I resent your sending out a PRO Hospital corporate welfare notice that is against the best interests of North Lake taxpayers and your Chamber members.
Who is preparing the notice you are sending out on Monday? I am one of the tax reform committee supporting Larry Metz’s bill and can provide information. I request you send out this rebuttal today.
The pink flamingo logo refers to the fact that the existing Hospital District tax regulation has NO spending rules or oversight and that the two local hospitals can split this year’s almost $9-million in property tax revenues and even spend it on pink flamingos for the front lawn without taxpayer recourse.
I request you include this reply in your email to members to provide an alternative viewpoint. More UPDATED information can be found by Monday on our website www.NorthLakeCountyHospitalDistrict.com (it is an unofficial site created by tax reformers because the existing Hospital District Board has refused in the last three years to create an email, phone listing, or website to provide details on the tax to taxpayers).
For instance, here are reasons to support Rep. Metz’s tax reform proposal for the North Lake County Hospital District:
- The current Hospital District regulation has NO OVERSIGHT ON HOW THE $8-MILLION IN TAXPAYER FUNDS ARE SPENT. I have been a corporate internal auditor, Federal auditor and anti-corruption adviser, and this current regulation is so bad from an oversight viewpoint that I often say the Hospitals can spend taxpayer funds on pink flamingos for the lawn because there are no spending rules. The named hospitals can spend it on pink flamingos, subsidizing the Villages hospital in ANOTHER County or $500,000 salaries and North Lake County taxpayers have no oversight protections. Rep. Metz’s bill would correct the complete lack of oversight.
- The current regulation only gives a pot of taxpayer money (about $9-million this year) to only TWO local private tax free corporations, and none of the funds are available to all the other clinics and doctors in the area who provide services to low income or indigent residents.
- The two hospitals report millions in profits, so why should this current regulation continue to give them $9-million in corporate welfare or bailout funds without any conditions like salary caps, restrictions on usage of funds, etc. (Since the hospitals are “non-profits”, they still earn cash above expenses, which we call profits).
- The two hospitals are already tax exempt and do not pay any income, property, sales or other taxes and a condition for hospitals to do that was they MUST absorb the costs of indigent care. So, they save many millions in taxes and to get that favored status, they are required to absorb indigent and other care. This is not available to most local competing businesses (which may be Chamber members).
- Half the taxed residents in the North Lake County area NEVER GOT TO VOTE ON THIS TAX. The tax was created before a 1964 Florida State Constitution was implemented that requires all taxes be voted on. Thus the two recipient hospitals want to continue getting unrestricted funds without any public vote. Rep. Metz’s proposal provides for both a voter’s referendum AND a 10 year sunset provision.
- Lake County is THE ONLY COUNTY IN ALL 67 FLORIDA COUNTIES to have this type of regulation without spending restrictions and where the District doesn’t own or control the hospital operations. Why subsidize two profitable, private, tax exempt corporations when no other Florida county does so?
- The current regulations, by only providing funds to two names hospitals, is anti-competitive. Rep. Metz’s proposal will level the playing field by allowing all qualified providers to be approved and be reimbursed for indigent care. Why is the Chamber supporting an anti-competitive position that harms the ability of other clinics in the County from being eligible for reimbursement for indigent care?
- Under the proposed tax reforms from Rep. Metz, the hospitals will still be able to file claims to get reimbursements for approved indigent care, so when the Hospitals tell staff, patients and “partner” clinics they won’t be eligible for approved reimbursements, that is not true. What is true is the new law would eliminate paying the Hospitals more than standard Medicaid and Medicare rates allowed by the government. Why pay the Lake County hospitals with local tax funds more than government allowed rates, when NO OTHER COUNTY IN FLORIDA DOES SO???
- Tax reform efforts have been stymied by the installation of Hospital supporting NLCHD supporting Board members Ken Carpenter, Jerry Brown, Robert Bone, and Roger Beyers. they all have resisted request for any reforms to existing regulations. Only this week did they call an emergency session and list some propose reforms to the existing regulations in order to fight Rep. Metz's reform of the existing flawed regulations. (Too late, guys).
These are just some of the reasons why the Eustis Chamber needs to investigate both sides of a political issue before sending out a politically oriented flyer. Taxpayers and Chamber members should REJECT efforts by the two local Hospitals to kill Rep. Metz’s tax reform bill which provides much more transparency and oversight over tax funds.
More info on efforts to reform the current corporate welfare situation can be found here:
Our Facebook page has periodic updates at https://www.facebook.com/FixNorthLakeCountyHospitalDistrict
Updates on this entire issue will be posted by Monday, Nov. 7 at www.NorthLakeCountyHospitalDistrict.com .
Many stories related to this issue have been posted on FiscalRangers.com and you can find them at THIS link.
http://webworks.typepad.com/lakecountyfiscalrangers/north-lake-county-hospital-district/
The Orlando Sentinel has published an editorial supporting Rep. Metz’ tax reform proposals. Read it HERE. And send this to ALL your friends who would like improved oversight on their tax funds. Note: We don’t support the Sentinel’s advice to wait until after the Scott Commission. That would delay tax reform for up to two years due to legislative calendars.
You can email your support to Rep. Larry Metz at Larry Metz ([email protected]). You should ALSO inform your other Lake County legislators that they need to support Rep. Metz’s bill – some of them have received healthy contributions from the Hospital industry and may not be supportive of taxpayer reforms. The six Lake County legislators are Sen. Alan Hays, Rep. Marlene O’Toole, Rep. Stephen Precourt, Sen. Paula Dockery and Rep. Charles VanZant. Their emails and phones are HERE.
Conclusion: The existing FLAWED regulation that defines the North Lake County Hospital Tax District doesn’t have proper spending rules, doesn’t have proper oversight , doesn’t have conditions like salary caps or reimbursement limits, has never been approved by all affected taxpayers, and has continued for 40+ years without any sunset provision. It is clearly a corporate welfare method for the two local hospitals. It doesn’t even specify that funds should be spent on indigent care.
Therefore, all North Lake County taxpayers should support Rep. Larry Metz’s bill and reject any actions by the two named Hospitals or the Hospital controlled board for the NLCHD to kill or dilute his tax reform proposal.
Vance Jochim
Lake County Fiscal Rangers
Chief Fiscal Watchdog
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