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