By Sascha Cordner
http://stream.publicbroadcasting.net/production/mp3/wfsu/local-wfsu-964887.mp3
Tallahassee, FL – A bill that would put the approval of the public sale of hospitals in the hands of a circuit court judge recently passed in the House Judiciary Committee. As Sascha Cordner reports, the vote was a close one and even some bill proponents say the bill needs more work.
Republican Representative Ed Hooper of Clearwater says he thinks allowing a circuit court judge the ability to approve the sale or lease of a hospital gives way to a more transparent system.
"Recently several examples of a taxing authority agreeing to the sale or lease of a hospital to another entity for less than fair or market value despite the existence of offers that are superior have occurred. There are also no mechanisms in the statute today to prevent that. There is also no requirement that the taxing authority come to agreement that best optimizes the taxpayers' return on investment, considers the utilization or creation of community programs, to assist the indigent or gives preference to proposals that reduce or eliminates the tax burden that our constituents have."
Associated Industries of Florida President Barney Bishop helped House Bill 6-19's sponsor, Representative Hooper in crafting the bill. He says one of the reasons for the measure is because of hospitals in the Broward County area.
"We've got the board of directors voting to sale themselves to create another entity, transfer the board members from one to another and the President and CEO is cutting a deal for himself on who he's going to lease the hospital to, this is unbelievable and this is inappropriate, it's unethical and immoral that the taxpayers in Florida have invested in this hospital to make it what it is today."
Ron Book is an attorney and a lobbyist, representing the North and South Broward Hospital Districts. He says this is just an attempt by proponents of the bill to lead attention away from the fact the bill is not needed.
"That's a bunch of bunk and that is being used as a red herring in effort by the for-profit hospitals to pass legislation to further control the missions of public hospitals. The law already requires in a situation where there is a lease or a sale of a public hospital interest or properties, that issues related to indigent health care, issues related to quality of care and the like meet a standard acceptable to the public. There's already a provision for people to go to the court if they're not happy with it."
But, Republican Representative Charles McBurney says though he supports the bill because it provides some openness within the process, he is unsure about the court's involvement and wants to put it more under the public's purview.
"I don't look at the court however to be the substitute for the business judgment of the parties. I foresee the courts should take more of a ministerial function rather than a discretionary function because I think we oughta be there discouraging litigation. I would ask that the sponsor look seriously at a public bidding process as suggested by Representative Eisnaugle."
Republican Representative Bill Hager of Boca Raton says he does not support this bill and made references to wrestling to make his point.
"If you strip this bill apart and mud wrestle it to the ground, this is nothing other than a panacea for corporate entities who want to target lesser institutions, and what it does is it templates these local hospitals, puts them in a half nelson, puts them in a half nelson, forces them into a posture that optimizes takeover, this is not in the public interests."
But, Republican Representative Matt Gaetz of Shalimar says he commends Representative Hooper's work on the bill and says it goes well with Governor Rick Scott's vision.
"And, I think that the relationship this bill could have to what the Governor's office is doing is that it could serve as a launching pad. It could really provide a pathway if we lay out how some of these public entities will become private entities. These are public assets and we can't forget about that, and these are assets that are owned by the people of Florida. And, so we should ensure if they're going to be transferred, that there's every opportunity for transparency, for fairness in the process that these facilities are put up for sale."
The bill's sponsor Representative Hooper says overall, the bill protects Florida taxpayers and he gave an example of why he believes the measure is necessary.
"This is a bill that protects your constituents' dollars. It's their asset. That sometimes it's done in backroom deals, Bert Fish Hospital, that was a backroom deal that thank God a circuit judge stepped in, and stopped and reversed that sale and Volusia County is spending millions of dollars to unwind that illegal act because of that Board of Director violated the Sunshine Law 21 times and negotiated a full time Board of Directors position for themselves on this now private board when they before on the public board."
House Bill 6-19 narrowly passed with a vote of 10-to-8, and it makes it last stop, the House Health and Human Services Committee, before it can go before the full House.