editorial

GUEST EDITORIAL: Hospital Dist Proposal “Crying Wolf” – Al Lizakowski

alGUEST EDITORIAL:   Al Lizakowski –   Al is a resident of the Ocean Shores community and writes extensively on issues affecting Eastern Grays Harbor.    Contact –  ajlizard1@msn.com

 

Hospital District Proposal “Crying Wolf”

I used to be an engineer for a large corporation and one of the first things they teach you is how to correctly camouflage profits.  One major way is depreciation.  You load up your total depreciable property with equipment, especially electronic equipment, which depreciates faster, so you can hide more profit.

Gray’s Harbor Hospital, in the last three years has added about 12 million in depreciable assets, of which over half is “fixed equipment” which depreciates faster than land and buildings.

The hospital is “crying wolf” because they say they are losing money, which  their 2013 balance sheet shows is about 2.6 million dollars.  What they aren’t making public is that because of the “magic” of depreciation they were able to depreciate over 4.5 million.  So when you consider this one little expense item alone, the net is 1.9 million that they were able to put into their kitty.  This is one of many other ways of shuffling money into small pockets here and there to hide the real profits. A good accountant is literally worth his weight in gold.

If you look closely at their 2013 actuals, you will see about 17 million dollars in cash, and strangely enough, their retained earnings, which is what is left after a corporation pays the bills, jumped from 33.3 million in 2012 to 38.9 million in 2013.  Ask them to explain how they added this 5.6 million in one year and still lost money, and you will hear what others have heard, which essentially is “let me get back to you on that”.

Remember that their long term bond debt is only 34.5 million, so please explain to me why they want to take money from your pocketbook when they have reserves enough to pay off that debt TODAY and still have money in the bank.      Al Lizakowski

4 Comments

  1. Al, If all of your assumptions, facts and figures are correct, I don’t get it! My more simple minded me thinks, as many do, regarding government and public entity budgets and debt–live within your means! Figure it out. All the households and individuals in this county can’t simply ask for a new tax to send “their Susie to college” because they didn’t plan for it. It seems so strange that business is as usual, with the hospital–until one day they jump up and cry wolf. I think they have lost a lot of trust with this “millions in debt” wolf cry.

    • My facts and figures came off the Department of Health website and from the 2013 actuals that were handed out at one of their public meetings. Anyone that wants to see and study a copy can look at my website http://www.lowerostaxes.com.

  2. Good stuff!
    I’m betting the “Daily (3 times a week) World” won’t print Al’s editorial. Hopefully the Vidette will.
    By the way Tom, I’m one hundred percent with you in opposing the Hospital Levy.

    __________
    ED: ya there is more going on than this waterfront mess.

  3. There is another place where profits can be hidden. Remodeling has been going on at GHCH main campus for years. The latest project was the new kitchen/cafeteria. I wonder where they got the funds for that if they are so broke? Donations,pie sales and auctioning of employee monthly parking spaces? Doubt that helped much.
    Cheap labor,cheap materials and over inflated construction claims are a recipe for lining pockets.
    Harborcrest Behavioral Health is a branch of GHCH and it is housed in a different building a few miles from the main campus. From what I hear, iHarborcrest is the real money maker and has been the one holding the hospital up while the hospital continues to mismanage funds. For their trouble, Harborcrest finally got new carpet. Supposedly, the old carpet was the same dirty old mess that had been there for over 20 years and was there when the unit was a nursing home.
    So it appears that Harborcrest may be funding the entire hospital while getting little in return, and the rest goes where????

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