Missing Millions: A Reminder That Lakewood Hospital Was Profitable
In the following statement Marguerite Harkness, CPA and Committee Chairperson, reaffirmed that Lakewood Hospital could easily be a profitable business if operated properly.
“The Clinic had increased administrative fees by 718% from 2002 to 2014 without providing any explanation. Last year, Lakewood Hospital handed over more than 24 million dollars in fees that the Clinic refused to account for. Any health care provider would have loved the deal the Clinic had, charging whatever it pleased without accountability.
“Free of these excessive fees, we confidently estimate hospital earnings of 18 to 20 million dollars annually before depreciation. That could add up to a 14% return on net patient revenue. The conclusion is clear. The hospital could easily operate at a profit. Otherwise why would three health care operators be so interested in running Lakewood Hospital? There was no open bidding. Serious suitors were coldly rejected. It only makes business sense to have considered these proposals. Instead, the city turned the hospital over to the Clinic for pennies on the dollar. You don’t have to be Warren Buffett to figure out that this is a horrible deal.” – Marguerite Harkness, Chairperson, Save Lakewood Hospital Committee
A referendum vote to repeal the deal that closed Lakewood Hospital will appear on the November 8, 2016 ballot.
Kevin Young is the media spokesman for Save Lakewood Hospital.