Still Open for Patients - Palomar Medical Center Downtown Escondido

A recent visit with a patient at Palomar Medical Center Downtown Escondido shows the hospital still serves the community as a medical facility.  The community has been made to believe that the downtown hospital was shuttered years ago.  Not true.  Up until 7 years ago, this hospital had more than 300 beds.

Palomar Medical Center Downtown Escondido - Sale Price $18 Milliion

Palomar Medical Center Downtown Escondido sold for $18 Million to Integral Communities, a residential home builder.  Palomar Health will continue to use the hospital for 15 months.
UT - Developer to pay $18 million for downtown Escondido hospital

Downtown Hospital Still Open!

More than a year after the Palomar Health Board decided to close the Hospital in Downtown Escondido, it is still open!  More of the inexplicable developments at Palomar Health!

Palomar Health Board Votes to Close North County Hospital Just Before Fire Season

"Robroy Fawcett, an Escondido resident speaking for a coalition that wanted to save the hospital, said closing it before the end of fire season could prove catastrophic. 'We need to keep this hospital open through fire season,' said Fawcett. 'They have a history of other hospitals being shut down or unavailable. This hospital is the most fire safe hospital. We are in a historic drought.' "
Comments and Video - Hospital Closure Decision

TV interview with 10News regarding closing the Downtown Hospital before fire season.  The Downtown Hospital is in a very safe location with regards to wild fires.
Report includes TV Interview

PH Decides to Close Downtown Hospital

Most of the discussion was held in closed session.  A Trade Secret?!!
Board to Decides to Close North County Hospital

Palomar Health Set To Promptly Close Downtown Hospital

Palomar Health (PH) has announced that it will have a meeting in a few days to decide on the closure of the Downtown Palomar Hospital in Escondido.  In a series of presentations, deemed meetings, PH took a few questions selected from questions submitted on cards.  They claim that they must close it by September.  The real meeting will be held on June 24th.
 “They ran out of money to renovate the hospital in downtown,” said Robroy Fawcett, who sported a T-shirt slogan that said “Save the Heart of Downtown Escondido.”
PH Executives Paint A Bleak Picture

ESCONDIDO: Refurbishment begins at downtown hospital : Escondido

ESCONDIDO: Refurbishment begins at downtown hospital : Escondido
"Minor refurbishment has begun at the downtown campus of Palomar Medical Center, but major work, including the grand vision of closing Valley Boulevard to accommodate a new medical plaza west of the hospital, is still a ways off, according to a presentation made by hospital administrators Tuesday night."

The Highly Informed Citizens said it would be like this!

ESCONDIDO: Pregnant women with emergencies will require transfer from new hospital to old : North County Times - Californian

ESCONDIDO: Pregnant women with emergencies will require transfer from new hospital to old : North County Times - Californian

"Under the new system, a pregnant woman with an emergency medical condition ---- brought on, for example, by a car accident, injury or some complication with pregnancy ---- would be taken by ambulance or helicopter to the new hospital, where emergency doctors and nurses would stabilize her.

The woman would then typically be taken to the downtown hospital for any additional pregnancy-related care, Steele said.
However, the stabilize-and-transfer method might not work for every patient."

TAX SHOCK FROM PPH! A 32% Tax Rate Hike!

Palomar Pomerado Health is moving forward with a 32% tax rate hike, to $23.50 per 100K of assessed value (AV) from $17.75 per $100K of AV, to cover payments on the Proposition BB bonds approved in 2004.

The PPH Finance Committee passed, without opposition, a resolution recommending the tax rate hike. The recommendation must be approved by the full PPH Board to take effect. The next PPH Board meeting is scheduled for August 9th.

In "calculating" the target tax rate ($17.75), PPH skewed its tax revenue models by excluding years of low AV growth (for example, FY1992/93 to FY1996/97), and by including only years of high AV growth (FY1997/98 to FY2003/04). PPH is now claiming the moderate AV growth since Prop BB passed was "unforeseeable."

Further, PPH has had knowledge of AV revenue issues for several years. As an example, last year: Prop BB Tax Rate Increase Coming Next Year?! (October 03, 2009)

This slide was presented to PPH Board members at a PPH meeting in 2008 warning them of AV revenue issues!

PPH Must Finance An Additional $74M

Palomar Pomerado must arrange financing for an additional $74 million (for a total of $1,057 million) in order to complete its new hospital. Major factor: the physical plant lease plan was not viable. Other factors: changes and proposed changes totaling about $30 million.

After raiding the funds originally allocated for a new patient tower at Pomerado Hospital, and raiding the funds for renovation of the downtown PMC hospital, PPH is still way short of funds. This is not a surprise to Informed Citizens. PPH had hidden this financing shortfall in plain sight using a purported plan to sell the physical plant for the new hospital and then leasing back its services. No takers were found for this ill-fated plan.

The following report is from 2009: "Yet pressures are also mounting at PPH. After learning the construction costs of its ambitious $773 million 'hospital of the future' in western Escondido had soared far above projections, the district's board was forced in recent months to slash nearly $30 million from the budget, with more cuts possible. Board members must decide whether to outsource a proposed $60 million energy plant to a private firm, . . ." NCTimes, May 28, 2009

In 2008, PPH claimed the lease plan was supposted to save $41 million. (see March 12, 2008)
esco1.blogspot.com/2008_03_01_archive.html

PMC (Lack of) Maintenance Reached Crisis Levels

This Elevator at PMC had already been down for 1 week according to PPH Staff as of June 18th.

PPH administration is requesting the Board to approve $1,689,750 for a renovation of the Palomar Medical Center elevators. ". . . it has also been determined that the patient tower elevators at Palomar Medical Center are deemed to be in need of renovation and are also an emergent need for use of FY 2011 capital. These elevators service core patient and visitor populations at PMC and thus also meet the definition of strategic imperative. As background, summary of this renovation is as follows:
o Risk of trapped visitors and patients.
o Fire Department being called to respond.
o Doubling workload when one elevator is down."
PPH Board Meeting Packet for 7/12/2010 (pages 40-43)

PPH Testing 3,400 Patients For Risk of Exposure

PPH is testing thousands of patients that had been exposed to possible infections, such as hepatitis or HIV PPH testing 3,400 patients

Larson Resigns From PPH Board, Yerxa Appointed

The PPH Board has appointed Steven Yerxa to replace the seat opened by the resignation of Alan Larson. Yerxa was the Chair of the Independent Citizen's Oversight Board when it was first organized. www.pph.org/PPHContentPage.aspx?nd=32&news=87

PPH Creates Arch Health Partners

PPH has created Arch Health Partners to complete with local medical groups. PPH has loaned $millions to start Palomar Physician Network (aka ARCH HEALTH PARTNERS), a doctor's group controlled by Covert and the PPH Board.

FICTITIOUS BUSINESS NAME STATEMENT FILE NO. 2010-003171 Filed With David L. Butler County Recorder on: FEBRUARY 03, 2010 FICTITIOUS BUSINESS NAME (S) a. Arch Health Partners Located at: 15611 Pomerado Rd. #400 Poway, CA San Diego 92064 Mailing Address: Same This business is conducted by: A Corporation The First Day Of Business Was: 10/01/09 This Business is hereby registered by the following: #1. Palomar Physician Network, 456 E. Grand Ave. #303 Escondido, CA 92025 - California I declare that all information in this statement is true and correct. (A registrant who declares as true information which he or she knows to be false is guilty of a crime.) /s/ Robert Trifunovic, President NCT 2248026 02/07/10,02/14/10,02/21/10,02/28/10

"Acuity-Adaptable" Rooms Legislation Fails

PPH designed its new hospital to operate on the basis of "acuity-adaptable" beds. (The Hospital of the Future - 168 Acuity Adaptable beds) However, the purportedly "evidence-based" design is not based on much of any real world evidence, and apparently is not a legal mode of operation in California. After completion of the design, and with significant construction under way on the new hospital, PPH has promoted legistration to allow its acuity-adaption mode of operation on an "experimental" basis. The legislation failed. So badly that the hoped for sponsor, Nate Fletcher, pulled the bill from consideration.
Assemblyman pulls Palomar health bill - Plans for adaptable care at new hospital derailed

Over-Budget New Hospital Affects Existing Facilities at PPH

". . . Michael, are we gonna have another year where we gotta put plastic over on top of the roof at PCCC to keep from having leaks, . . . but when its truly a rainy day, I'd like to fix the roof . . . ."
Quote of PPH CEO Micheal Covert speaking to the PPH Board on October 5, 2009, about the budget for the new hospital.

(Listen to the Audio: PPHBdMtg100509clip.mp3)

A little background. A few years ago, the PPH Board redirected $10 million a year from normal capital expenditures for PPH's existing facitities to cover cost overruns on the new hospital in the ERTC.

That diversion decision was made before the extension was granted allowing continued use until 2030 of the downtown hospital (Palomar Medical Center - PMC). The extension was granted by the Summer of 2008. However, the PPH Board continued the diversion.

The $10 million diversion was shortsighted and should have ended by August 2008, soon after the extension was granted for the existing hospital - PMC!

PPH CEO Gets BIG Raise!

PPH CEO Michael Covert was given a $154,000 raise by the PPH Board.
ESCONDIDO: Hospital CEO's pay rises to $736K per year, plus possible bonus

The Pomerado hospital expansion has been canceled due to cost overruns on the new hospital, the downtown hospital's renovation has been canceled due to cost overruns on the new hospital, patient care "frills" have been eliminated due to cost overruns on the new hospital, etc.

Covert did not deserve a 26% raise.

The NCTimes Editorial Board disagrees with the Covert Raise:
EDITORIAL: Untenable spiral
Our View: Tying officials' pay to national averages no way to run government
EDITORIAL: Untenable spiral
Our View: Tying officials' pay to national averages no way to run government

Prop BB Tax Rate Increase Coming Next Year?!

Tax rate to pay for Prop BB bonds may need to be raised. The shortfall for FY2010 is projected to be $500,000. Back in 2004, the PPH promised to charge a tax rate of $17.75 per $100,000 of assessed value.
http://www.pph.org/Media/File/Board_Meetings
/ip_20090810_396.pdf (pdf page 42 of 129)


More Prop BB bonds will be issued in the near future!

Tri-City CEO Doubts PPH Funding

This was published in the NCTimes:

The new Palomar hospital, he added, is not likely to be finished.
"They're $200 million to $300 million short," Anderson said. "I don't think they can find the money."
Told of Anderson's comments, Covert said his district does have the capital to finish the new building.
"He's obviously not familiar with the specifics of our project and our finances," he said.

HOSPITALS: Local health care landscape changing rapidly

My observation is that PPH's explanations of its expansion programs are not very easy to follow, and appear to have funding gaps.

City Settles Redevelopment Funds Dispute With Schools

According to the NCTimes, "The city and Escondido's two school districts have reached a tentative agreement for dividing up millions of dollars in revenue from redevelopment property taxes that are expected to accumulate in upcoming years."
ESCONDIDO: Pact divides up future millions from redevelopment

The amounts mentioned in the article are much lower than those proposed in a Spreadsheet dated Oct 12, 1990 showing schools' share.

PPH Schedule Delayed 9 Months!

PPH has revised the date for the completion of the new hospital to April 2012 from July 2011. This delay has resulted in the need to pay DPR, the project construction managers, an additional $13+ million for their services. PPH has yet to discuss what features of the new hospital will need to be cut in order to make funds available for the additional $13+ million.

City Of Escondido Redevelopment Funds - Transparency Needed!

Last Fall, I learned that funds from Escondido Redevelopment Agency (Community Development Commission) had been promised to Escondido school districts.

The City failed to provide information to initial public records requests about the promised redevelopment funds in a timely manner. After information was obtained from the school districts, the City then provided information about the promised redevelopment funds AFTER the election was over for Prop T in 2008.

That reaction by the City indicated to me that more transparency is needed with respect to redevelopment funds.

Last March 18, 2009 at a City Council meeting, comments by a Police Union representative about an audit of City funds yielded some interesting comments about the redevelopment funds promised to the school districts.
Comment Video

Based on those comments, the City may be using "loans" to as a mechanism to withhold funds promised to the school districts.

This is what was reported when the Redevelopment Agency was approved back in 1984.

"Redevelopment to aid schools"
Times Advocate, Thursday, December 13, 1984, Page B1
"ESCONDIDO - If the city's proposed redevelopment agency generates as much money over the next 45 years as its proponents say it will, the Escondido Elementary School District could get eight elementary schools, two middle schools and unlimited new classrooms, all paid for with redevelopment money. The Escondido High School District could get three new high schools, two new continuation high schools and more class rooms. Those are some of the provisions contained in drafts of nine different agreements approved 4-0 Wednesday night by the City Council. . . . Approved with little comment, the agreements were negotiated with various agencies that would lose money to the redevelopment agency as it siphons tax revenues from them to pay for a civic and cultural center, downtown improvements and housing assistance for the poor."

Times Advocate, Sunday, November 18, 1984, Page B1
"How much? What agencies would contribute to the cost of redevelopment [in Escondido].
San Diego County $63 million
High school district $51.9 million
Elementary school district $68.3 million
Hospital district $5.8 million "

Oct 12, 1990, EUHSD's share of redevelopment funds = $145 million
Spreadsheet dated Oct 12, 1990 showing EUHSD's share being $145 million allocated by the Escondido Redevelopment Agency for new high school construction and esisting school refurbishment (from link below)

Tax Rate Details and Assumptions (Response from EUHSD to Public Records Request)

~80 page Agreement with Escondido Redevelopment Agency, 1991 & 1984 (Response from EUHSD to Public Records Request)

First response by City of Escondido (NOTHING!) [Second response was a copy of response from EUHSD above]

San Diego County Taxpayers (between $82 million and 254 million - Redevelopment Funds [page 3])

PPH Schedule Delays On New Hospital

I predict that PPH will soon need to admit to schedule delays on its new hospital.
Page 65 of 70 of the PPH Board Packet for July 13th is telling!

"Prior CM unrealistic schedule" (CM=construction manager).

Translation. The PPH Board does not yet know the extent of the schedule delays because DPR, the new construction managers, have not yet finalized it.

PPH strategy? Blame Rudolph and Sletton, the previous contruction managers!

Who could have predicted that!

Covert to City: MOU May Simply Go Away!

PPH claims that the Citracado extension to Valley Parkway, which is not due for completion until a decade after the City gets the money for the project, may make the MOU go away!

Listen to the audio (30 seconds) of Covert telling the city (Daniels, Grimm & Domingue) that the MOU may go away. (You will need to turn up the volume).

The NCTimes reported it as if the City is at fault!
Citracado 'connector' delayed to 2013, upsetting PPH officials

There is no delay on the Citracado extension. What is delayed is the Downtown Medical Village promised by PPH to the City of Escondido.

Watch videos of PPH's promises by Marcelo Rivera and Michael Covert and in the MOU for PPH's downtown project. Link to the ERTC Development Dgreement.

Union-Tribune Editorial - More Disclosure on PPH/Kaiser Deal

Union-Tribune Editorial
More disclosure
Public access needed at Palomar Pomerado Health district
2:00 a.m. June 7, 2009

We are grateful for the time and effort that 19 volunteers (usually retirees) put in every year to serve on the county grand jury. Grateful to them, but certainly not always in agreement with them.

As it did two months ago when it recommended the adoption of a $52.7 million annual trash pick-up fee for San Diego homeowners, while mischaracterizing the nature of the city's pension deficit, the grand jury has gotten another one terribly wrong.

This time, the earnest jurors were bamboozled by the slick talk of the people who run the publicly owned Palomar Pomerado Health district in North County. The issue at hand was the hospital district's insistence that it can keep key details of contracts hidden from the public because they arguably could be used for competitive advantage by private hospital groups. Residents have requested details of a particular deal, but been denied.

The good jurors, according to their report, were satisfied by assurances from district officials that there were no “problems involving public disclosure.” They also reviewed sections of state law and agreed with Palomar Pomerado officials that the law grants them the right to make secret deals. Our reading of those sections suggests otherwise. And, as we have said, if they are ambiguous, the Legislature should rewrite them in favor of the public's right to monitor how elected officials spend tax dollars.

That, of course, is the issue here – the critical importance of open government. One need look only at what problems caused by secrecy have done to the reputation of the neighboring Tri-City Hospital district.

Palomar Pomerado, which serves San Marcos, Escondido, Poway, Ramona, parts of Rancho Peñasquitos and Rancho Bernardo and other areas, is supported by property taxes. In 2004, residents, who elect the district's governing board, voted to increase their taxes for a $496 billion bond issue to fund a new cutting edge hospital in Escondido and other improvements.

Counties, cities, school districts and other government agencies are required to make their revenues, expenses and contracts available for public review. Public hospital districts should not be entitled to any less rigorous scrutiny, despite what a panel of well-meaning volunteers concludes.

In the Union-Tribune on Page F2 (06/07/2009)
More Disclosure Editorial

Grand Jury Opinion of Kaiser Agreement

"The secrecy surrounding Kaiser Permanente's controversial bed "guarantee" at the new Palomar Medical Center has been appropriate because the health care industry is so competitive, according to a San Diego County grand jury report issued Thursday."

"But Robroy Fawcett, a frequent critic of the district and the Kaiser agreement, said the grand jury does not understand what trade secrets are and has allowed the two providers to define that term too broadly. Fawcett also complained that the grand jury did not contact him or the press. 'They should have asked the people who have been complaining about the lack of disclosure,' he said."

Grand jury vindicates PPH deal with Kaiser (06/04/2009)

Apparently the Grand Jury did not get a copy of these letters from PPH:
Public Records Request Denial Letter #1 (1/30/2006)
Public Records Request Denial Letter #3 (11/26/2007)

For more details on the "trade secret" PPH/Kaiser Agreement from February 2004:
Kaiser Agreement Details

The Grand Jury report makes interesting the timing of this article in the North County Times:
Kaiser contract won't force PPH to turn away other patients (05/22/2009)

Logan Jenkins at UT roasts PPH

PPH HIRES COSTCO DESIGNER

In yet another signal that the visionary “hospital of the future” is too expensive for today's budget, Palomar Pomerado Health district has retained Costco's interior designer to furnish the rooms of the nearly billion-dollar hospital.

After having dropped an outdoor healing garden, meditation room and a $3 million “media wall,” the district's board voted to save more money by adopting a wall-less warehouse design concept.

“It may not be what we promised, but we're planning to sell Hebrew National hot dogs out front,” said Michael Covert, the health district's president and CEO.

LOGAN JENKINS, 03/15/2009

No Covert Bonus

"PPH president and CEO, Michael Covert, has been denied any bonus this year because of the district’s failure to meet performance standards. Bruce Krider, Chairman of the PPH Board, said that even though Covert has received heavy bonuses for the past four consecutive years, he won’t be getting one this year."

The Paper, 04/09/2009

Stay Informed!

The local newspapers have quit covering much of the latest news at PPH.

Stay Informed. Subscribe to INFORMEDCITIZEN on twitter.com
http://twitter.com/informedcitizen

Stay Informed. Watch the InformedCitizens on YouTube.com
http://www.youtube.com/user/InformedCitizens

Coming topics:
1. Bonus results for PPH CEO Michael Covert (April 1st meeting).
2. 10 month freeze on new equipment at Palomar Medical Center.
3. Continuing DPR contract negotiations. In its 10th month!
4. Kaiser contact details. Deadlines and financial penalties.
5. PPH's March strategy meetings (8 hours). Topics:
- Expansion out-of-district into Temecula, Oceanside, Carlsbad
- Proposed takeover of Graybill & CHC by PPH-controlled & funded

Facebook group coming soon!

Why twitter, youtube, blogger, facebook, etc.
Experts predict the end of the printed local newspaper business model.
http://escondido.ning.com/

Covert Bonus On April 1st!?

It sounds like an April Fool's joke! The PPH Board is considering a bonus for Covert AFTER a year in which the Medical Village in downtown Escondido was neglected, the Pomerado Hospital Expansion funds were diverted, and the budget for new ERTC/Kaiser hospital budget continues to spiral out of control! Here the agenda for the "special" meeting! http://www.pph.org/Media/File/
Board_Meetings/spbm_20090401_289.pdf

The PPH Board may be really out of touch with the current economic situation. The latest Finance Committee report shows PPH making only $3,296 in February, before property taxes were factored in. http://www.pph.org/Media/File/
Board_Meetings/ip_20090331_288.pdf (pdf slide 86 of 129)

Is PPH headed into the "AIG" zone!

DPR Contract "Hides" Known Increases

The "new" DPR contract has significant potential for later cost increases. The proposed contract has a baseline amount for DPR of about $43.1 million "based on an estimated Substantial Completion Date of July 1, 2011." [Section 5.2] If the Final Project Schedule indicates that the completion date will be later, then DPR compensation is increased.
http://www.pph.org/Media/File/
Board_Meetings/ip_20090331_288.pdf (pdf slide 42 of 129)

The Final Project Schedule from DPR is not due until July 1, 2009! [Section 2.4.4]

Referring back to the schedule I analyzed in my post below on May 14, 2008, the start of the steel structure was delayed from July 1, 2008 to mid-November, a 4 1/2 month delay. I believe it would be extremely difficult to meet the "estimated" completion date of July 1, 2011, given the already known delays. Further, numerous statements from PPH officials have placed the completion date well into 2012.

A year ago, this change was supposed to save money for PPH:
"Eight months after it broke ground on its new hospital, Palomar Pomerado Health is preparing to change construction managers in hopes of shaving up to $50 million off the cost."
PPH to change contractors on hospital construction project

It is quite interesting how the North County Times and the Union Tribune continues to print whatever fiction PPH feeds them!

PPH Update by Jim Vander Spek

Jim Vander Spek writes another insightful letter:

The latest news out of PPH is not encouraging. After Prop BB was passed and this agency announced that a new site in the boondocks was chosen for the new hospital, many predicted that their facility plan was taking on the appearance of a slow moving train wreck. That is now coming true.

Most recently, our local daily newspaper reported that the new ERTC hospital is costing roughly twice what Sharp is paying for their similar sized facility in San Diego. The PPH bond rating has been lowered, and operating results have turned negative.

The new hospital will be outrageously expensive but also sadly deficient. For example, it will not house a woman’s health facility because funds ran out. Further cutbacks on “frills” have also been announced.

Promised clinics in San Marcos, Valley Center and even Ramona are doubtful or abandoned. As for the downtown Escondido improvements, we can forget about that. Only a clinic near Rancho Bernardo has materialized, probably to staunch the bleeding from inroads that Scripps Hospitals is making in that area.

All of this could have been avoided if PPH had stuck to their original plan of using taxpayer moneys to expand and modernize the Escondido site. It would have been done by now and a jewel for North County. Instead, in order to meet the facility needs of Kaiser Hospitals, we have what we have, if they indeed can even finish what they started.

http://www.thecommunitypaper.com/
archive/2009/03_19/letters.php
A special THANK YOU to Lyle Davis of THE PAPER for his work in shining light on the Covert Operations at PPH!

PPH's Ultra Expensive Hospital of the Future

"The hospital of the future' being built in western Escondido is projected to cost $934 million, more than four times as much as a $194 million 'hospital of the future' that opened last month in San Diego."
Timing, land costs make new hospital more expensive than SD facility

FOUR TIMES AS MUCH! PPH is frittering away taxpayer funds, and is continuing to neglect the downtown facility.

PPH Board Blindsided by Covert Cost Increases

The PPH Board member never ask probing questions of PPH CEO Michael Covert. For that reason, Covert has again blindsided with further cost increases on the new hospital.

"Hospital trustees said they were surprised the transition costs had not been included in previous budgets, and Trustee Nancy Bassett urged district staff members to avoid handing trustees large bills at the last minute."
Transition costs for new hospital may be $20M [North County Times]

Cost Cuts Plague New Hospital

The costs for PPH's expansion plan have spiraled out of control until it hitting a ceiling of implausibility. PPH cannot hope to raise enough money to complete the "Hospital of the Future" as presently configured. The present configuration has had numerous cuts over the years, but now the PPH Board members are being forced to cut pet features.

"The $21.4 million in cuts approved Monday include eliminating water features, an outdoor playground, several gardens, a library, meditation room, conference center and a large electronic drape that would display soothing images. "
Trustees cut $21M in features from new Escondido hospital [North County Times]

As long as the present administration continues, these features (and more to come) will be gone forever!

Scripps Opens In Escondido

Scripps Coastal Medical has acquire the Penn/Elm Medical Group in Escondido, having offices across the street from Palomar Medical Center.
Scripps Coastal Medical Center opens in Escondido [North County Times]

I have heard several persons in the Escondido community speculate that PPH's new hospital was part of a strategy to prevent Scripps and Sharp from making incursions into PPH's markets!

A government hospital district using tax money to prevent competition in area medical care services. If true, it would be unfortunate for district residents.

PPH Hides Cost Increase Meeting

I was surprised to read a very informative article about last night's special meeting by the PPH Board of Directors.
PPH may scale back new hospital to rein in sharply rising costs (North County Times)

In a letter I sent to PPH on March 29, 2008, I requested to remain on the list to receive notification of all PPH Board meetings. I did not receive any notification of last's night meeting about the update to the PPH Facilities Master Plan

If I had known about the meeting, I would have certainly been there to videotape it.

Bond Funding Delayed

PPH decided to delay issuance of both ARS revenue bonds reissuance and GO (Prop BB) bond issuance because of market conditions on Wall St.
http://www.pph.org/Media/File/
Board_Meetings/min_20081202_238.pdf
[pdf page 4 of 32]

Election Fails To Change PPH Board

The incumbent won re-election. The 2-year open seat was won my Jerry Kaufman, who was past member of the ICOC, before resigning for an apparent conflict of interest, and who stated during that Candidate's Forum that he was on a "Chairman's Council", whatever that is. Thus, no significant change to the PPH Board.

Fitch Ratings: PPH May Be Required To Increase Property Tax Rate

The PPH Board just voted to issue $110 million of Prop BB authorized bonds two years ahead of schedule. The original schedule for the third issuance of Prop BB bonds was in FY 2011 as shown in this slide presentation from July 29, 2004 (slides 18-19, pdf pages 20 & 21 of 25). http://civics.robroy.cc/PPHFinancePlan080404.pdf

The projected tax rate for paying for the Prop BB bonds was based on a later third issuance, AND on a property tax base that grows at an average of 6.1% per year between FY 2005 and FY 2046. Much of the PPH district has experienced a collapse in real estate values on the order of 30 to 50%, which collapse will likely translate into a shrinking tax base. No credible estimates have the property tax base growing by 6.1% for the foreseeable future.

I am convinced that the accelerated issuance of these bonds, the recent collapse of real estate values, and the current slowdown in PPH revenues, makes it mathematically impossible for PPH to maintain the promised tax rate of $17.75 per $100,000 of assessed valuation promised to the voters in 2004.

The requirement for the PPH Board to raise the property tax rate is echoed by Fitch Ratings in its just published (October 21, 2008) evaluation in advance of the accelerated issuance of $110 million of Prop BB bonds:

"The tax rate and levy to repay debt is unlimited, although PPH is legally required to pay the general obligation debt if the ad valorem taxes are insufficient. Fitch notes that the tax base vulnerability may require PPH to exceed the tax rate promised to voters in order to accommodate the rising debt service schedule."
marketwatch.com: Fitch Rating Article
digital50.com: Fitch Rating Article

The accelerated issuance of $110 million in bonds is covering for PPH's inability to issue additional revenue bonds at this time. The two main reasons for not issuing revenue bonds at this time: 1) PPH failed to generate sufficient revenues in FY 2008 to now support an offering for additional revenue bonds; and 2) PPH must now refinance variable rate revenue bonds issued in 2006 ($180 million) which have interest rates set in weekly auctions held by Citigroup, and those interest rates have doubled during to the current financial crisis.

Based on my calculations, I am certain that property tax revenues at the tax rate now being levied ($17.75/100K) will not cover the required debt payments for the Prop BB bonds being issued. The question now is, will the PPH Board vote to raise the tax rate, or will the PPH Board cover the shortfall with its own funds. I find it highly doubtful that the PPH Board will vote to cover the shortfall with its own funds. PPH does not have the funds to cover a property tax shortfall. That being the case, then the current PPH Board just took an action that will result in higher future property taxes on the average property owner in the PPH district.

A stealth property tax increase by the current PPH Board!

Palomar Medical Center has been SAVED!

Palomar Medical Center, the heart of downtown Escondido, has been saved! Citizens for a Downtown Hospital are to be congratulated for keeping the public aware of the true condition of PMC.

"State regulators have pushed back the deadline for Palomar Medical Center in Escondido to meet new earthquake-resistant building standards from 2013 to 2030."
NCTimes: Deadline Extended to 2030

I have maintained that Palomar Medical Center needed only modest retrofits to meet State earthquake standard until 2030. Now the State of California, using a computer modeling program, has determined that even those retrofits are not needed, thus extending the life of Palomar Medical Center by two decades.

The current PPH administration exaggerated the problems with Palomar Medical Center in order to get taxpayer funding for an expansion required by a "trade secret" deal with Kaiser. The current PPH adminstration and board will be long gone before there is any opportunity for PPH to implement its wrong-headed decision to close the downtown Emergency Room, and other vital acute care resources. Thus, Palomar Medical Center has been SAVED!

Back in 2000, before the current PPH administration wandered into town, the cost of retrofitting the McLeod tower was a modest $3 million to $6 million. "'We're marching through the hospital stem to stern, looking at every square foot to decide what our future needs will be,' said David Owen, spokesman for the Palomar Pomerado Health System, which encompasses the 333-bed Palomar Medical Center in Escondido and the 199-bed Pomerado Hospital in Poway. Pomerado is in good shape. But there are two unsafe buildings at Palomar Medical Center, including the tower that houses a large number of hospital departments. McLeod Tower, built in 1967, will take by far the most amount of work ---- $3 million to $6 million, officials estimate. The tower ---- highly recognizable to passers-by ---- is in the center of the complex and could be considered the hospital's nerve center. It houses surgery rooms, oncology, radiology, mental health, pediatrics, orthopedics and the Graybill Auditorium. The Adams wing, built in 1957, houses administrative offices and is expected to cost $400,000 to retrofit. The problem, hospital officials say, is the non-construction costs, which have yet to be determined. Depending on how intensive the repairs are, those can include the costs of closing whole units and relocating patients, the costs to move expensive machines and the costs to build temporary housing for the displaced patients, doctors and machinery. 'The basic cost of construction is relatively minor compared to what other hospitals have to spend,' Owen said. 'But we have no way to guess what other expenses we are talking about. It might take $3 million to fix the wall, but another $3 million to $4 million to move all the X-ray stuff.' It's all going to take money better spent on program and patient care, hospital officials said."
NCTimes Article from 2000

PPH Board Election

A number of challengers have signed up to run against the present PPH Board. A new vision at PPH is sorely needed.

Challengers include ex-San Marcos Councilman Lee Thibadeau, and past-PPH Board member Evelyn Madison
NCTimes: PPH Race Attracts Candidate

PPH Layoffs: Chaplains Cut

It appears that PPH's costly new hospital is affecting care at the existing hospitals.

"Some Palomar Pomerado Health employees said this week they're worried that recent layoffs that cut Palomar Pomerado Health's number of staff chaplains could leave some people without the spiritual support they need."
NCTimes: LIFE SUPPORT

Lawsuit at PPH

A doctor sues PPH, and CEO Covert, over the termination of his right to practice at any PPH facility. Read the full story at:
The Paper: The Covert Agenda

A watered down version:
Doctor Sues Hospital

PPH them terminates a long-term contract with the Doctor's Radiology Group.
NCTimes: Radiologists protest cancellation of contract with PPH

UT: Full Airing, Please

The San Diego Union-Tribune
Monday, June 30, 2008, Page B6

Full airing, please
Palomar Pomerado pact shouldn’t be hidden

The publicly owned Palomar Pomerado Health District wants the best of both worlds. It wants to keep contracts hidden from the public to protect trade secrets that arguably could be useful to a private hospital group seeking to compete with the district, which serves San Marcos, Escondido, Poway, Ramona, parts of Rancho Bernardo and Rancho Penasquitos and other areas.

Yet the district enjoys the taxing and bonding authority of a public agency. Most recently, in 2004, voters passed Proposition BB, a $496 million bond measure to fund expansion and improvement of district facilities, including a state-of-art hospital now under construction in Escondido. As a result, property owners are paying an additional $17.75 for every $100,000 in assessed valuation annually for 30 years.

The fundamental fact that Palomar Pomerado is owned and partially funded by taxpayers trumps all arguments about why it should be allowed to keep contracts secret.

The issue has come to a head over efforts by some district residents to see details of a Palomar Pomerado contract with Kaiser Permanente guaranteeing a certain number of beds in the new hospital to patients insured by Kaiser, in return for unspecified payments from the health insurer. The district has released a copy of its contract with Kaiser, but the document is so heavily redacted that it is impossible to glean details.

In addition, top Palomar Pomerado officials implausibly deny that a guarantee exists, though unredacted sections contain the words “capacity guarantee,” “guaranteed bed” and more. Almost surreally, the officials insist that skeptics among the public and inquiring journalists are taking the words out of context. That context, they note, apparently unaware of the irony, is in the portions of the contract they redacted.

One top official, while insisting there is no guarantee, did at least acknowledge that the contract does provide Kaiser with a “certainty” of available beds in exchange for a fixed payment. [Compare: " a fixed payment for bed availability guarantees", PPH2WallSt103007.pdf , discussed in my blog entry of April 26, 2008]

District taxpayers have every right to question whether the deal with Kaiser is good for residents, and whether it might have affected voters’ thinking during the Proposition BB campaign. But the Kaiser contract is really just a symbol in the bigger, and essential, discussion of the importance of open government.

The revenue, expenses and contracts of Palomar Pomerado - and all public hospital districts - should be subject to detailed public review, just as are those of counties, cities, school districts and other government entities. That is one way elected officials are held accountable and waste or corruption detected. Sunlight and fresh air are the best disinfectants.

District officials point to sections of the Health and Safety Code that they say give them the right to make secret deals. Our reading leads us to conclude otherwise. If the law is-ambiguous, the Legislature should change it in favor of taxpayers and their right to monitor how government manages their money and resources.

In the meantime, we call on the Palomar Pomerado trustees to do the right thing and expose the details of Kaiser bed guarantee to the air and the light.

San Diego Union Tribune: Full airing, please

The Editors at the Union Tribune wrote: "In the meantime, we call on the Palomar Pomerado trustees to do the right thing and expose the details of the Kaiser bed guarantee to the air and light."
June 30, 2008, page B6

Union Tribune Covers Concerns of Informed Citizens

The Union Tribune has two articles about the cost overruns for the new hospital, the funding cuts to the downtown Medical Village project, and secretive Kaiser Agreement.

The 'new hospital will have 300 beds, not 453', and the downtown project budget of '$73 million . . . is down to $20.8 million for two warehouses and buying three properties - none of it to pay for the healing gardens, pedestrian pathway, stone-covered buildings and magnet high school the district talked about in detail in 2005'
SD Union Tribune: Costs Cloud Vision

Regarding an agreement to set aside "about one-third of the 300 beds" in the new hospital "for patients of Kaiser Permanente", PPH lawyer claimed the Kaiser agreement was protected from public disclosure because of "trade secrets".
SD Union Tribune: District defends guarding details of Kaiser contract

"Quiet" Layoffs at PPH

PPH is laying off 67 full-time employees and 19 part-timers to reduce overhead costs. PPH currently has 2,663 full time employees.

More is available at:
NCTimes Article: PPH Layoffs

The Secret Kaiser/PPH Agreement (Redacted!)

The Paper recently forwarded a redacted copy of the secret Kaiser Agreement to me. I have since found out that other media outlets had received copies of the secret Kaiser Agreement before The Paper received it in response to the public records requests, namely the North County Times in February, and the Union Tribune in April. Neither the NCTimes nor the UT have reported on the secret Kaiser Agreement.

PPH has refused to provide me with any part of the Kaiser Agreement for over 2 years!
http://civics.robroy.cc/PPH-KAgmtDenial1.pdf January 31, 2006.

The redacted secret Kaiser/PPH agreement is available at this link:
http://civics.robroy.cc/ka.html

To date, the Paper is the only media outlet to inform the public of the redacted secret Kaiser Agreement:

"Redacted Kaiser/PPH Agreement Released
In response to a recent public records request made by The Paper, Palomar Pomerado Health has provided a redacted (blacked out) version of a Hospital Services Agreement between Kaiser Foundation Hospitals and Palomar Pomerado Health effective February 1, 2004.
The 4-year old Kaiser/PPH Agreement is 73 pages. About 12% of the Kaiser/PPH Agreement was redacted. An attached set of Appendices includes an additional 60 pages. About 58% of the Appendices was redacted. A copy of the Kaiser/PPH agreement is available on the web at: http://civics.robroy.cc/ka.html

The details of the Kaiser/PPH Agreement will be reported after more study of this information and will be published in The Paper, when completed."

The Paper, May 29th, 2008

Interesing parts of the Kaiser/PPH Agreement:

15.7 Consultation andCooperation
The parties shall consult with each other regarding any issue pertaining to the Agreement which causes media interest or a party's concern about public relations, and the parties shall cooperate in developing any statement or press releases in connection with any such issue. . . .

8.10.2(c) If the Receiving Party . . . is requested (by . . . requests for public records under Government Code § 6250 et seq., . . . ) to disclose any Confidential Information, that party shall . . . give the other party prompt written notice of the request . . . at least forty-eight (48) hours prior to making such disclosure, so that the other party may seek a protective order . . .

2.6 Capacity {Completely Redacted}
7.6 PMC Expanded Facilities Design {Completely Redacted}
7.7 Clinical and Administrative Office Space Leasing {Completely Redacted}
7.8 Additional Facilities {Completely Redacted}

PMC West / Kaiser Hospital Schedule Slips

PPH is "hoping" to save $50 million by changing General Contractors for the new PMC West / Kaiser Hospital in the ERTC. Wow! Good luck with that!
PPH to change contractors on hospital construction project

To the side is a comparison of construction schedules for the new PMC West / Kaiser Hospital provided by PPH in 2004, 2006, and 2008. It appears that the schedule for the new hospital in the ERTC slips a week every two weeks. According to the original schedule in 2004, the scaled-down hospital project is about 2 years behind schedule.

Last December, PPH CEO, Michaal Covert, addressed the Downtown Business Association Board in Escondido. "Covert said plans have always called for work on Palomar's patient wings and other buildings to be started only after the new hospital opens in late 2011 or early 2012."
PPH official seeks to reassure downtown business leaders


The "early 2012" move-in date was reported in an article last October: "The new hospital is expected to relieve some of the pressure on Palomar, but that is not scheduled to happen until early 2012."
Rapid medical evaluation

Interestingly, PPH did not mention the schedule slips as one of the reasons for changing the general contract in the middle of the hospital construction project.

Shame On NCTimes: "Kaiser's Secret Dream Comes True"

Last Thursday, I tried to post a comment on this North County Times article: Palomar Pomerado pours concrete for new hospital.

Here is the comment that was not posted:

"Kaiser's Secret Dream Comes True"
"About a third of this new hospital is for Kaiser. PPH has an agreement with Kaiser that PPH has characterized as a trade secret. However, to convince Wall St. to support its bonds, PPH wrote the following last fall, 'Under the Kaiser Agreement, the District is obligated to provide inpatient and outpatient hospital services, primarily at the new PMC hospital, to Kaiser for members of the Health Plan in exchange for fees based upon a schedule the parties have negotiated including a fee for services rendered per diem and a fixed payment for bed availability guarantees. . . . After the District completes and opens the new Palomar Medical Center Campus, the District will be required to provide Kaiser a guaranteed hospital bed capacity. . . . After opening the new PMC hospital, Kaiser will be required to make certain fixed payments to the District. . . . the District has the right of first opportunity to negotiate with Kaiser to develop or participate with Kaiser in developing (at Kaiser's election) any general acute care hospital Kaiser proposes to develop in the District's service area.' The Kaiser agreement was approved in January 2004! It reality, the PPH-Kaiser agreement has been a big political secret!"

Why was my comment not posted? Perhaps my quoting from a PPH document violates the comment editor's policy against: "offensive language, defamatory statements, personal attacks or other questionable content."

My comment was well researched and should have been posted. The PPH document I quoted from is available on my website, 1). Also available are a first denial letter from PPH in which PPH characterizes the Kaiser Agreement as a trade secret not subject to public disclosure under the California Public Records Act, 2); a PPH document projecting Kaiser's need for 137 beds in 2015, 3); a document indicating that the new ERTC hospital will have 300 usable beds, and 60 "shelled" beds needing funding for completion, when the new hospital opens, 4); and a recent denial letter from PPH dated 11/26/2007, 5). The PPH-Kaiser Agreement was approved on 01/20/2004, which was 9 months before the $496 million Proposition BB was submitted to the District's voters, 6).

1) PPH2WallSt103007.pdf
2) PPH-KAgmtDenial1.pdf
3) KBedNeed.pdf (page 9)
4) PPHBdSupport122005.pdf (page 22)
5) PPH-KAgmtDenial3.pdf
6) KaiserInfo2004.pdf

Shame on the North County Times for keeping the community in the dark on the PPH-Kaiser Agreement!

Escondido Mayor Bans Citizen's Video Presentation

The Mayor of Escondido, Lori Holt Pfeiler, went to silly lengths to prevent the video presentation of Escondido resident Wally Gutierrez.

More discussion of what happened may be presented when time is available!

Here is the video of the promises made by then PPH Chair Marcelo Rivera that he wanted to present: Rivera Video

What is really troubling is the the video was presented at the previous meeting (the Mayor was absent), but the sound did not work, and the citizen was invited to return at the next meeting.

Videos of the Mayor's silly actions in quashing citizen advocacy:
Part 1
Part 2
Part 3
Part 4

The story in the NCTimes:
Before Story
After Story

NCTimes editorial favoring multimedia presentations:
NCTimes Editorial

"The Paper" is Banned By PPH

Lyle Davis publishes "The Paper" a weekly distributed in San Diego's North County region. During the preparation of an article focusing on PPH's CEO, Michael Covert, Lyle Davis was informed that his paper was no long allowed to distribute copies at Palomar Medical Center and at Pomerado Hospital.

Articles on the ban:
The Paper Banned Article (bottom of the page).
The SD Union Tribune and PPH spin the ban:
Biased Union Tribune Article

The offending article: "A Covert Operation . . ."
www.thecommunitypaper.com

Auction Rate Securities Bite PPH

In 2006, PPH refinanced bonds, and issued new bonds. These bonds were auction rate securities having an interest rates determined by weekly auctions held by Citigroup. The ARS scheme was supposed to provide provide PPH with short-term interest rates for long-term bonds.

Instead, PPH's borrowing costs have doubled or even tripled! Further, PPH and Citigroup entered into an interest-rate swap derivative to partially protect from high interest rates, but since interest rates have dropped, PPH owes Citigroup money from the low interest rates!

Moodys has lowered PPH's outlook because of the exposure.
www.thecommunitypaper.com

"Extreme instability in that area ---- called auction rate securities ---- in the last five weeks has raised interest rates on about $180 million in debt that Palomar Pomerado is carrying from an average of 3.79 percent to as high as 10 percent."
NCTimes Moodys Article

I wonder if Citigroup informed the PPH Board that Citigroup was fined 1.5 million by the SEC in 2006 for violative practices in its auctions.
SEC Press Release

Videos of PPH's Empty Promises

An Informed Citizen Concerned About The Downtown Hospital has generated videos from past City Council meetings to highlight the promises made by PPH to create a destination Medical Village in downtown Escondido, as part of the agreement to allow PPH to build a hospital in the ERTC across the street from SDGE's 550 Megawatt electric power plant.

The videos can be viewed on www.youtube.com. Search for videos posted by the InformedCitizens.

Here is a link to the video of the promises made by then PPH Chair Marcelo Rivera:
Rivera Video

Here is the video of the promises made by PPH CEO Michael Covert:
Covert Video

Funding Shortfalls and Priorities at PPH

Look at PPH's 32 acre ERTC medical campus. After $811 million is spent, the campus will sport big parking lots, a big vacant field, and an 8 acre hospital facility.

PPH will have numerous high-priority projects needing funding. These projects include the Women's Center (93 beds), the Hospital Support building, the Outpatient services building, the North Nursing Tower expansion (~150 beds), and several parking structures. However, PPH's financing is so tight, it is considering leasing its Physical Plant (Mechanical) facilities! This is hailed as a $41 million savings!

Further, the expansion patient tower at Pomerado Hospital will be 83% shelled, after spending $117 million. Why would PPH cut $72 million from the funding of the downtown Medical Campus, but fund a building that will be only 17% complete! Poway must hold more political sway than Escondido! And Escondido has an MOU with PPH!

The handout provided to the City Council is available at this link:
CChandout031208.pdf

The picture of the Master Plan map and the Finance-Constrained Plan map are available at this link:
CChandout031208.jpg

Where Is The Schedule for PPH's Destination Medical Village In Downtown Escondido

PPH claims it is going to create a destination Medical Village in downtown Escondido. The current plan would require the closing of Valley Boulevard (the current location is shown by the blue lines). An EIR has not been prepared for such action.

Further, PPH claims it will build a 50,000 sq. ft. class A office building for its new headquarters. Where will that headquarters building be located. I have circled two buildings. A request was made through the City Council for the ill-advised "secret" Hospital Ad Hoc Committee to request a schedule from PPH for the two circled building. I predict that the Ad Hoc Committee will fail in this task.

The handout given to the City Council is available at these links:

PMCEast-Sched030508-1.JPG

PMCEast-Sched030508-2.JPG

PPH's full plans are available at this link under August 20, 2007:

http://civics.robroy.cc/PPHFG.html

Link to PowerPoint presentations:

PMC-East 8-20-07.ppt (29 MBytes)

PMC-East 8-20-07.mht (41 MBytes)

New "Secret" Ad Hoc Hospital Committee Opposed

The City of Escondido formed a "Hospital Ad Hoc Committee" to work with the Palomar Pomerado Hospital District regarding the ERTC and downtown development agreements and the MOU. I believe the Ad Hoc Committee meetings should be open because PPH is a necessary party to the meetings, and because the ad hoc committee will be a standing committee having continuing subject matter jurisdiction. Under CA Govt Code 54952, the ad hoc hospital committee would be a "legislative body" subject to the open meeting requirements of the Brown Act.

First page of handout given to the City Council.
http://civics.robroy.cc/Handout020608adhoc1.pdf

The MOU does not require PPH to build anything downtown. Instead, it merely requires PPH to move its administrative headquarters to the downtown campus two years after the new hospital opens.
http://civics.robroy.cc/MOU-AdHoc.pdf

The final MOU is available at this link:
http://civics.robroy.cc/final-mou.pdf

Possible Small Hospital Planned for San Marcos

H.G. Fenton is proposing to build a University Office and Medical Park on Discovery Street in San Marcos. This is just west of CSU San Marcos.
http://www.signonsandiego.com/news/northcounty/20080202-9999-1mi2fenton.html

The plan includes a healthcare facility and/or smaller scale hospital. The "Initial Study" shows 80,000 square feet of hospital space, and 250,000 square feet of Medical Office/Hospital space. The total size of the Hospital, Medical Office, and Professional Office space in the project would be 1,070,000 square feet! (Initial Study, page 4)

The plan's Initial Study and EIR are available at:
http://www.ci.san-marcos.ca.us/departments.asp?id=5265

SB306 Extends Deadline For SPC-1 Buildings To 2020

OSPHD has recently posted information about SB306 on its website. http://www.oshpd.ca.gov/fdd/sb1953/index.html (Near the bottom of the page under "Legislative Changes.")

The legislation was approved by the Governor on 10/13/2007. The bill:
1. Permits a hospital owner to comply with seismic safety deadlines and requirements in current law by replacing all of its buildings subject to seismic retrofit by January 1, 2020, rather than retrofitting by 2013, and then replacing them by 2030, if the hospital owner meets all of the following conditions:
A. The hospital owner has requested an extension of the 2008 and 2013 seismic safety deadlines.
B. OSHPD certifies that the hospital owner lacks the financial capacity to meet seismic standards, providing the hospital owner provides specified financial information to OSHPD by January 1, 2009, including information filed annually with OSHPD that shows that the owner meets all of the following financial conditions: [Cannot afford to retrofit, and maintains Medi-Cal contract and a list of items. See the legislation for details.]
2. Permits OSHPD to approve extension of the deadlines for a hospital that is classified as a nonconforming Structural Performance Category (SPC)-1 building, and is owned by a county, city, or county and city, that has requested an extension of the July 1, 2008 deadline to file a declaration by June 30, 2009, if the owner files a declaration with the office that as of the date of that filing the owner lacks the financial capacity to meet the January 1, 2008 deadline for that building. Requires the declaration to set forth the commitment of the hospital to replace those buildings by 2020 with other buildings that meet SPC-5.

This appears to be the reason why the conditions for re-evaluation using the HAZUS software have changed! The re-evaluation to SPC-1E was not needed!

It just may be that the life of the McLeod tower at Palomar Medical Center was extended to 2020 by SB306! PPH is a public hospital district, and it may not fall under item 2, but it would be surprising if it did not fall under item 1.

The legislative history is available though: http://www.leginfo.ca.gov/bilinfo.html

The bill was first introduced 2/16/07 , and approved by the Governor on 10/13/07.

PPH was tracking the bill: http://www.pph.org/default.aspx?nd=1074.

Fact Checking For: Vibrant Downtown Medical Village At Risk

The North County Times ran an article written by Wally Gutierrez and myself, "Vibrant Downtown Medical Village At Risk":
http://www.nctimes.com/articles/2008/01/27/
perspective/8_34_561_26_08.txt

We have received inquires as to whether the article is accurate.

The facts in the article were checked as shown by these two emails:
Fact Checking Email 01/17/2008
Fact Checking Email 01/18/2008

The emails are in Outlook Express format. It is best to save the emails by right clicking and using "Save Target As..." Then the emails can be opened with access to the attached pdf documents.
(If this too problematic, I can convert the emails to pdf and provide links to the attached pdf's)