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Monday, October 8, 2007
2:00:26 AM EDT
"The Biggest Theft..."
"The Biggest Theft of Public Property in County History!
Marin General Hospital by MUTA Director Norman Carrigg, M.D. The problems at Marin General Hospital began in 1985 when the five elected directors of the District (all of Marin except Novato) leased the hospital for 30 years to a shell corporation. The hospital CEO and the MGH attorney (Quentin L. Cook) left public employ to run the privatized MGH (behind closed doors) that came into being with a massive transfer of public funds to the shell corporation.
Beginning in 1986, MGH became a cash cow, first for the California Healthcare System of San Francisco, and then for Sutter Health, the Sacramento-based hospital chain. And it was in 1986 that Supervisor Gary Giacomini described the privatization as the “biggest theft of public property in Marin history.” Moneys needed for patient care simply aren’t available. MGH was once known for its high quality care. That was pre-lease and lease up to the time Sutter took over in 1996.
--------------------------
Background
Many Marin residents are unaware that MGH belongs to the public as do school districts, for example. District taxpayers paid for the hospital opened in 1952 on donated land. An east wing was added and more recently a west wing. The west wing is known to be seismically safe by current standards. Most of the inpatients are in that wing. The hospital additions were financed with revenue bonds. Since hospital bond revenue is not taxable, interest costs are acceptable.
For years MGH has been self-sustaining and profitable. In fact, it is a cash cow for its current operator, Sutter Health, the Sacramento-based hospital chain. Sutter acquired a 1985 hospital lease in 1996. The hospital is scheduled to return to community control in 2015 when the lease expires.
The 1985 MGH Lease
In 1985 the hospital attorney, Quentin Cook, and its CEO, Henry J. Buhrmann, presented a 30 year lease to the five elected directors who signed without dissent. A shell corporation was formed with the hospital attorney and CEO assuming similar positions in the privatized hospital. Late 1985 millions of dollars of public assets were transferred to the new corporation which began operation behind closed doors. It still lacks transparency.
The public did not know. There were poorly-publicized meetings, inadequately covered by the local press. Dissenters were hardly noticed. I read the lease and wonder how anyone could sign it but one of the signers, Dr. Peter Eisenberg, was wildly enthusiastic about it for years. In contract Gary Giacomini, then a county supervisor, called it "the biggest theft of public property in Marin's history."
Beyond 1985
The privatized MGH "affiliated" with California Healthcare Systems in San Francisco in 1986. Millions of dollars of patient revenue made one-way trips across the Golden Gate Bridge. The one-way money flow changed direction in 1996 when the San Francisco operation and MGH merged into Sutter Health. Quentin Cook, then CHS president, became a Sutter vice-president.
The elected district board was dominated by management sycophants. Early 1996, at the behest of Buhrmann, MGH joined Sutter's "obligated group." It took the votes of three directors: Dr. Larry Bedard, Valerie Bergmann and Suzanna Coxhead. Bedard and Bergmann are history but Coxhead remains at the only Sutter sycophant on the elected board. What are the obligations? Any time there is more money in the hospital bank account(s) than needed for 14 days operation, Sutter has the right to sweep. This is known as "excess cash transfer." What I consider more dangerous is that MGH became one of the guarantors of Sutter's massive aggregate debt.
Written by mormons4justice
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Sunday, October 7, 2007
4:31:42 PM EDT
Let The Cleansing Begin!!!
"The Cooks moved to [[Hillsborough, California]], where they had three children. Cook worked for 27 years as a corporate attorney, becoming a managing partner of Carr, McClellan, Ingersoll, Thompson and Horn in the [[San Francisco Bay area]], three years as president and [[chief executive officer]] of California Healthcare System, and vice chairman of Sutter Health System."
This is what was deleted from the Wikipedia Article on LDS Apostle Quentin L. Cook.
Written by mormons4justice
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4:25:31 PM EDT
CORRECTING THE RECORD
SUTTER SAYS: "After a decade of economic challenges, Sutter Health is financially healthy today."
THE FACTS: Sutter is attempting to justify its recent, record-breaking profits by claiming that the company suffered financial hardship over the past decade. What's the truth? According to its own financial records, Sutter earned a profit during every one of the past ten years, except for 1994 when it recorded a small loss of $532,000. Altogether, "nonprofit" Sutter made nearly $1.2 billion in profits during the past decade. In 2003, Sutter was one of the most profitable hospital chains in the nation, earning an 8.2% profit margin that is nearly 400% higher than the national average. Observers believe that Sutter's skyrocketing prices, which stem from the company's monopoly-like power across Northern California, have contributed greatly to its booming profitability.
SUTTER SAYS: Sutter's "financial health" is "good news for the patients and communities we serve..."
THE FACTS: When a company's "financial health" results from price-gouging consumers, then it's not such good news for the public. According to Blue Shield, Sutter's prices are 80% higher than the statewide average. Recently, the California Public Employees Retirement System (CalPERS) dropped 13 Sutter hospitals from its health plan because Sutter refused to lower its astronomical prices. CalPERS President Sean Harrigan calls Sutter Health "the poster child of corporate greed" in the California health care industry.
SUTTER SAYS: "...we reinvest our earnings into better health care."
THE FACTS: Like hospital systems across California, Sutter must rebuild its hospitals to comply with California's earthquake safety law. At the same time, Sutter is diverting hundreds of millions of patient-care dollars to Wall Street. During the past two years, Sutter funneled $665 million into its investment portfolio, which totaled $1.8 billion at the end of 2003.
Sutter also uses its "earnings" to fund million-dollar executive salaries as well as the company's relentless corporate expansion. Through mergers and acquisitions, the company has more than doubled in size during the past decade, and soon will take over 122-bed San Leandro Hospital.
SUTTER SAYS: "As a not-for-profit organization, Sutter Health has no stockholders. Our assets are used to support our charitable health care mission."
THE FACTS:
While Sutter's parent corporation is legally a nonprofit, Sutter operates dozens of for-profit subsidiaries, including an insurance company in the Cayman Islands. Tax records reveal that Sutter has transferred millions of dollars from its nonprofit hospitals to its for-profit subsidiaries. Also, Sutter has spent thousands of patient-care dollars to oppose legislation (Assembly Bill 1629) that would require hospitals to provide improved transparency and accountability for their use of health care monies. Sadly, Sutter seems determined to stop common-sense reforms that would allow the public to better understand where Sutter's profits are going.
The Facts about Sutter’s Prices & Profits:
In its recent advertisement, Sutter claims that its average prices are “right in line with those of other Northern California hospitals.” Sutter cites statistics from a study to support this assertion. Here are the facts:
- The study cited by Sutter was funded and directed by Sutter, and produced by Sutter’s own high-priced consulting firm.
- Blue Shield’s analysis of the actual prices that Sutter charged its patients revealed that Sutter’s prices are 60% higher than the Northern California average.
- The Federal Trade Commission has subpoenaed Sutter documents as part of an ongoing anti-trust investigation. Officials are investigating whether Sutter’s monopoly-like hold over East Bay hospitals is having harmful effects on consumers. Concerns have intensified with Sutter’s recently announced takeover of San Leandro Hospital. After the takeover, Sutter will control nearly 60% of the hospital business in an area stretching from Richmond to Hayward. In San Francisco, Sutter controls nearly 50% of the city’s private hospital beds.
Written by mormons4justice
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4:21:47 PM EDT
Link to Sutter's Corporate Watch

Sutter Health's high prices, predatory treatment of uninsured patients and lack of adequate charity care have recently brought much attention to the company. Even though it is legally a non-profit health system, Sutter now faces many of the same issues that have plagued major for-profit healthcare systems over the last several years. Sutter's recent dispute with the California Public Employees Retirement System (CalPERS), an ongoing investigation of anti-trust issues by the Federal Trade Commission, critiques of its charity care practices by government officials, lawsuits, and other patient care issues have promoted widespread public concern over Sutter's actions. This website was created to keep investors, who have purchased more than a billion dollars in Sutter's corporate bond debt, informed about recent activity concerning Sutter Health.
http://www.suttercorporatewatch.com/pressroom.php
Written by mormons4justice
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4:08:22 PM EDT
An example is
Marin General Hospital. Our public hospital is
operated by a so-called non-profit, Sutter Corp.,
which profited $465 Million last year alone, in
part by cutting care to Marin patients. MGH is
now threatened with loss of Medicare and
Medical funding, which will be devastating for
many of Marin’s seniors. Kaiser patients are
impacted by overcharges for MGH trauma care.
How did this happen to a public owned facility?
[History: MGH was operated by the public
District board until Sutter’s predecessor got
control for zero dollars in a conflicted deal.
Sutter now uses MGH revenues
to fund their 28-hospital chain.]
Sutter Health uses MGH as its cash cow. Money
siphoned by Sutter from the non-profit MGH can
legally be invested in for-profit Sutter businesses.
Patient revenue siphoned to Sacramento means
lesser care at MGH. In fact, the privatized MGH
is now in danger of losing its Medicare and
Medi-Cal funding because of Sutter’s substandard
quality of care.
Written by mormons4justice
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4:03:27 PM EDT
Currently, the elected Marin General board is suing Sutter Health of Sacramento, operator of the hospital, to break a 1985 lease. The crux of the lease is that at inception, the lessee, Marin General Hospital Corp., violated California government code, section 1090.
The elected board alleges that the two 1985 principals, then both public employees, made a lease that benefits them. If so, the law was violated and the lease can be voided. There is no disagreement that CEO Henry J. Buhrmann and Hospital lawyer Quentin Cook switched from the public Hospital once the lease was in place.
in 1986, Marin General joined California Healthcare System, San Francisco. Millions of dollars made a one-way trip across the Golden Gate Bridge. In 1996, Marin General and California Healthcare System "affiliated" with Sutter Health.
Marin General pays Sutter an annual $2 million affiliation fee. Sutter has the right siphon Marin general money any time there is more than enough money in the till for 14 days' operation (of the hospital). Marin general is the most productive cash cow in the Sutter herd. The efforts to get the hospital to community control are being fought vigorously by Sutter.
Norman Carrigg, M.D. San Rafael
Written by mormons4justice
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3:54:16 PM EDT
A Tale of two Hospitals. El Camino
The El Camino
Hospital District
An Ideal Case Study for Marin
From: Friends of Marin Healthcare Brochure
El Camino Hospital District was well-functioning and
offered a broad spectrum of healthcare services to its
residents until 1992, when the Board turned over the
District’s operation, management and assets to a private
50l(c)(3) corporation named Camino Healthcare.
In October 1995, after significant financial losses and
service cuts, the District Board filed suit over validity of the
1992 contracts, charging conflict of interest. In 1997, the
District won its suit, and the hospital and all assets
returned to District control.
Less than 100 days later, El Camino was once again profitable
and worker relations were greatly enhanced. Today
employees are proud of where they work. Long-delayed
improvements have been made. Rolled-back employee benefits
have been reinstated. Letters from patients express
gratitude that the “old” El Camino Hospital is back.
Since then, El Camino became a teaching partner with
Stanford University, purchased state-of-the-art equipment,
and provides state-of-the-art care. Today, El
Camino is considered one of the nation’s top hospitals.
Its accolades include:
One of Top 100 Cardiac Hospitals in the country
One of Top 100 Orthopedic Hospitals in the country
The #1 hospital in 2000 for the quality of inpatient
nursing care, out of 120 hospitals assessed
Highest ranking for overall performance from the
Patients Evaluation of Performance in California, from
the nation’s largest publicly-reported and most comprehensive
hospital patient survey
Named in 2003/2004/2006 as one of the nation’s Most
Wired by Hospitals & Health Networks magazine.
Designated in 2005 as California’s first communitybased
Nursing “Magnet™” Hospital by American Nursing
Association’s Credentialing Group.
Recognized as one of the nation’s top performanceimprovement
leader hospitals
In 2004, El Camino was the sole recipient of the
President’s Award for Customer Satisfaction from among
300 hospitals nationwide. In 2005 it was an American
Hospital Association McKesson Quest for Quality Prize®
finalist — one of four hospitals in the country recognized
for leadership and innovation in quality, safety, and commitment
to patient care.
District Board members currently include two physicians,
a clinic administrator, a Stanford research scientist,
and a computer industry program manager.
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3:53:21 PM EDT
History of MGH Scandal
County population about 200,000
Marin Community Clinic forms.
Beryl Buck dies, leaving her estate to the Leonard and
Beryl Buck Foundation, to be administered by San
Francisco Foundation solely to benefit Marin’s needy.
Kaiser opens new 5-story hospital in Terra Linda.
1970s
County population about 215,000
1980–81
Sutter Health forms in Sacramento.
SF Foundation says too few needy people live in Marin
to honor Buck’s wishes.
1982–84
CA Healthcare System forms (current status: merged).
CA law changed to permit lease of District hospitals.
A PAC forms with the goal of electing 5 members to the
MHD Board who favor privatization. PAC members
include physicians who later would receive contracts from
the newly privatized MGH, developers who later invested
with MGH physicians in real estate near the hospital, local
bankers who would finance these deals, and prominent
local politicians.
1985
Novato Community Hospital seeks affiliation with MGH.
When rebuffed, it affiliates with Sutter Health.
MHD authorizes revenue bonds to build new hospital
tower.
Healthcare District law is amended to permit District
hospitals to meet in closed session to protect trade
secrets and to contract for professional health services
without a competitive bid.
The District CEO and Counsel negotiate a 30-year deal to
lease Marin General Hospital to their own private corporation,
conveniently named “MGH Corp.” MGH Corp.
then becomes a wholly-owned subsidiary of California
Health System (CHS), headed by the District’s Counsel.
The District transfers all its assets to MGH Corp., effectively
handing over authority to set policy and standards
of care at MGH, and the authority to manage the
Hospital, Marin Home Care, and the MGH Foundation.
1986
Court gives Marin Community Foundation the role
of distributing the Beryl Buck trust.
CHS takes over California Pacific Medical Center
(merger of five SF hospitals), Alta Bates, and the
newly privatized Mills-Peninsula Hospital.
1987–89
CHS/MGH buy Ross General Hospital and sell to JMA
Properties, which immediately closes Ross General.
Based on the activities in Marin County, California
Healthcare District law is amended to require a public
vote to approve any future lease of any District hospital.
County population about 225,000
1990–94
District Board authorizes using bond funds originally
intended for MGH upgrade to purchase and build
Cancer Center at 1350 So. Eliseo.
Sutter Health reduces beds at Novato Community
Hospital from 75 to 62.
California Emergency Physicians given contract to
manage MGH Emergency Room.
Sutter Health and CHS begin merger talks.
Nurse staffing cuts begin at MGH and other CHS
hospitals to reduce operating costs. Unlicensed
caregivers are hired to provide care at the bedside.
MGH Corp. and Marin IPA form the Marin Physician
Hospital Organization (PHO). PHO allows Sutter to
negotiate insurance contracts through a for-profit
subsidiary. IPA and MGH Corp. split profits.
1995–97
The California Department of Health Services cites MGH
for 40 violations of health and safety laws regulating
healthcare quality.
US News & World Report releases a report ranking MGH
in the bottom 25% in all specialties and absolutely last
in cardiology.
The Joint Commission on Accreditation of Healthcare
Organizations (JCAHO) ranks MGH in the lowest 5% of
hospitals nationally.
Making none of this public, in December 1995, the District
board approves MGH joining Sutter by a vote of 2-0.
Marin Safe Healthcare Coalition forms to fight
declining quality of care, staffing cuts, and efforts
to cut psychiatric care.
CHS and Sutter Health merge. Sutter becomes CHS
successor and de facto manager of MGH Corp. and
Marin General Hospital.
1995–97 (continued)
MHD Board votes that Sutter/MGH violated lease by failing
to provide notice of lack of neurosurgeons.
MHD Board votes unanimously that MGH Corp. has
breached the lease.
MHD Board files lawsuit in Sacramento County Superior
Court, charging conflict of interest in making the lease
contract and breaches in the lease
1998–99
District settles lease breach portion of suit against
Sutter/MGH. CA Supreme Court refuses conflict of
interest appeal.
Ross Psychiatric Hospital closes as a result of Medicare
billing fraud.
Marin County threatens to sue MGH/Sutter for withholding
rent payments, making the District unable to pay
the bill for the 1996 election and upcoming election.
Report released on California Department of Health
Services citations against Sutter/MGH for violating at
least 135 state or federal laws or regulations governing
hospital care, some as many as five different times.
County population about 250,000
After severe nurse staffing cuts and the shift to
unlicensed staff, physicians begin to warn about the
slashing of services for profits and a looming patient
care crisis.
Marin County places more mentally ill, and all mentally
ill adolescents, out of county after Ross closure.
Neurology Clinic of Marin forms.
Marin Surgery Center forms.
Marin Rehabilitation Hospital forms.
County hires outside trauma experts to evaluate
trauma plan. They recommend Level II trauma care be
instituted in Marin.
Decisions for 2006 and beyond
Hospital retrofit or new build.
Finalize agreement with Sutter Health for early
termination of the lease.
Plan for Level 2 trauma care
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3:39:04 PM EDT
"The Biggest Theft of Public Property in County History!
Marin General Hospital by MUTA Director Norman Carrigg, M.D. The problems at Marin General Hospital began in 1985 when the five elected directors of the District (all of Marin except Novato) leased the hospital for 30 years to a shell corporation. The hospital CEO and the MGH attorney left public employ to run the privatized MGH (behind closed doors) that came into being with a massive transfer of public funds to the shell corporation.
Beginning in 1986, MGH became a cash cow, first for the California Healthcare System of San Francisco, and then for Sutter Health, the Sacramento-based hospital chain. And it was in 1986 that Supervisor Gary Giacomini described the privatization as the “biggest theft of public property in Marin history.” Moneys needed for patient care simply aren’t available. MGH was once known for its high quality care. That was pre-lease and lease up to the time Sutter took over in 1996.
The hospital requires seismic upgrades of its central and eastern wings. Sutter does not want the responsibility and for that reason, among others, is willing to terminate the lease before 2015. The crucial need now for voters is to elect consumer advocates to the Healthcare District board.
The team of Dr. Larry Bedard and Dr. James Clever is hoping to form a bloc with Sharon Jackson, a Sutter sycophant, who came on the board in 2004. I do not consider that troika will work in the public interest, although Dr. Clever is somewhat of an unknown. Bedard is not. He was a director in 1994-96, until he was recalled in November 1996.
I think the pro-consumer trio of Dr. Jennifer Rienks, Jonathan Frieman and Kathleen Russell could fill the three vacancies on the board comfortably. Dr. Archimedes Ramirez, a director since 2004, needs to be joined by directors who are interested in bringing back the high standards of yesteryear’s quality patient care.
*
An excerpt from a member’s letter:
The Sept 11 IJ editorial “Healthcare Circus Must End” deserves comment. I did not consider it a circus, but there was reason for activist anger.
It surprised nobody that Robert Derzon was the choice of three Marin Healthcare District directors to fill the 60-day vacancy created by the death of Dr. Lawrence Arnstein. Directors Coxhead, Jackson and Severinghaus joined by new director Derzon were involved in a controversial vote to sell district property at 1260 South Eliseo. The IJ pointed out that Derzon was accused of conflict of interest because of his involvement with Marin Community Clinic, which wants to buy the property.
The 1260 land, not needed now, may be essential in the future. Radiation therapy is now done in Sutter-owned 1350 South Eliseo. It may be mandatory in the future to move out, and 1260, like 1350, has the requisite room lead lining. This is a sale that should be submitted to the district voters, or at least openly and thoroughly debated. Dr. Archimedes Ramirez is the only director to oppose the sale.
A front page Sept. 13 report advised readers that “negotiators for the Marin Healthcare District and Sutter Health have hammered out a definitive agreement for ending Sutter’s management of Marin General Hospital.” The district negotiators were board members Sharon Jackson and Dr. John Severinghaus. This pair negotiated with Sutter secretly, as Sutter demanded. The other board members were excluded. This inexcusable detour around democratic process works in Sutter’s favor, not the district’s.
Sutter will using MGH as a cash cow, and by the terms of the agreement will not have to contribute to any seismic upgrade. The agreement at this point is hardly definitive.
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