According to Oliver, the move to retain Barnes came about because Erlanger objected to Walker County getting legal advice from the McKenna Long firm, which Erlanger has used as its bond attorney for many years.
Oliver maintains there is no conflict, but nonetheless called on the former governor to step in.
“We have a long-standing working relationship with Barnes Law Group,” Oliver said. “Roy Barnes has been involved in these matters in the background for us, but will now step forward as counsel of record for Walker County and the Hospital Authority, since Erlanger has insisted that McKenna Long not work with us.”
Among the financial concerns he has raised, Oliver sought Barnes’ opinion on the legality of the line of credit documents currently on the table in the negotiations.
“The short answer is that neither the Authority nor the Counties may enter into the line of credit documents as drafted without violating Georgia law,” Barnes said in his opinion, returned to Oliver Thursday afternoon, March 24.
Oliver, who also serves as attorney for Walker County, also inquired of Barnes about the intergovernmental agreement (IGA) required for the three counties to officially approve the partnership as well as how Hutcheson’s boards are structured.
Based upon his initial review of the documents, Barnes said that by making direct commitments to Erlanger, which is not a Georgia governmental entity, the intergovernmental agreement “loses its character as (a) contract under the Georgia Constitution.”
Catoosa County attorney Chad Young said that, upon his initial review of Barnes’ opinion, there are some points that he agrees with and others with which he disagrees.
“HMC bond attorney Glenn Thompson is making some minor changes needed to satisfy some of the points that Barnes made in his opinion,” Young said regarding language in the agreement about the way the payments would be made.
Young said he disagrees with Barnes’ opinion on the intergovernmental agreement. “Erlanger is not a party to the IGA. That’s between the three counties and the Hospital Authority Board.”
And while the three counties had initially asserted their desire for significant revamping of Hutcheson’s board structure, Catoosa and Dade County have backed off of demands for any pre-deal shuffling, citing time restraints due to HMC’s financial pressures.
Still, according to Oliver and Walker County commissioner Bebe Heiskell, a majority of the Authority Board have held firm with them that legal protections must be in place before they will sign off on any deal.
Those desired protections have raised the question of having Hutcheson’s non-profit boards populated by appointed or elected county officials, such as the Authority Board members.
Citing a 1985 Georgia Supreme Court case, Oliver maintains that the practice is encouraged.
“The Court did not say that an authority had to have a board with heavy county representation,” he said, “but their ruling encourages it in order to maintain the accountability required under Georgia law.”
Oliver characterizes Hutcheson’s mid-1990s reorganization, whereby the Hospital Authority Board gave control to the non-profit HMC Inc., as “a miserably failed experiment.”
“Handing over their hospital via a 40-year lease, to a non-profit entity, totally in charge and running the whole show, with no accountability, is a flawed model,” he said.
Barnes concurs in his opinion. “Never can the public Hospital Authority become subservient to the non-profit.”
Back and forth
The move to retain Barnes is the result of a series of often heated back-and-forth communication between the various parties involved in the now months-long negotiations.
In a March 22 e-mail reply to an inquiry from a member of the Authority Board who represents Walker County, HMC Inc. attorney Ward Nelson stated that any lack of progress is the cause of Walker County’s continued objections.
Nelson wrote that “Catoosa and Dade commissioners are both very eager to get this deal done and they recognize the danger in any further delay,” and continued by telling the Authority Board member, “I truly hope that you and the Walker County contingency will realize that this is the only deal right now available to save this hospital, and it is a very good deal at that. To lose Erlanger at this stage is to say goodbye to Hutcheson Medical Center and the many hundreds of jobs lost and families devastated.”
The reply was also sent to various other hospital board members, the county commissioners and their legal representatives, and Erlanger president and CEO Jim Brexler.
Heiskell said she is not holding up the process to approve a supposed 20-year contract with Erlanger, but rather has worked hard to facilitate the deal. “The specifics were only made known to the county representatives in recent weeks after Erlanger’s private due diligence of Hutcheson revealed more debt, and now they want the counties to secure their investment.”
The parties in favor of the partnership agreement as it now stands continue to point to HMC’s precarious financial situation as the reason why time is of the essence.
“What is the risk or harm in closing that deal now?” Nelson asked in his e-mail. “(We) believe the best approach is to close with Erlanger now while the hospital doors are still open.”
Nelson cited HMC creditors that might demand payment, in addition to “what Regions may be forced to do” as factors that could force the hospital into bankruptcy if a deal is not struck with Erlanger.
Hutcheson is currently in default on a $35 million bond issue through Regions Bank.
“This is the only deal right now available,” Nelson maintained.
Heiskell says that even though she doesn’t want the community to be without a hospital or to see anyone lose their job, she also doesn’t believe the current proposal is in the best interest of the citizens of Walker County.
“It has always been my opinion that the HMC Inc. board has never had any other goal than to get the deal done no matter what the consequences,” she said. “I do believe other arrangements can be made that will be beneficial to our community.”
Oliver took great exception to Nelson’s e-mail, and saying he could no longer be constrained from public comment, issued a statement on Friday, March 25.
“Up until this week, the negotiations with Erlanger had been confidential,” he said, characterizing Nelson’s e-mail as “inaccurate and misleading.”
“With the details now public, and with other officials making inaccurate comments on it, Commissioner Heiskell, with apologies to Erlanger, felt it incumbent to defend herself and the Walker County taxpayers by setting the record straight.”
http://www.ajc.com/news/atlanta/marta-member-off-criminal-114199.html
hmcemployee - you were obviously at the town hall meeting. Do you recall a gentleman who stood up and described himself as a former health care executive whose company negotiated the restructuring of many hospitals? I didn't see any news reports that mentioned him, though in my estimation he raised the most important issue of this whole affair, that being that no matter who takes over, Hutcheson is going to be a very different hospital in three to five years. Any HMC employee who thinks that Erlanger is throwing cash into the game in order to save jobs is delusional. Look at the economy and look at the health care market run amok - there will be big time cuts no matter what.
Erlanger's board won't approve more than $5 million cash without security, and the only security out there is A) the value of the Hutcheson facilities (a good plan except that, as I understand, Erlanger has insisted on very unreasonable lein terms should the hospital fail) and B) the counties' creditworthiness, and C) a combination of the two. In any of the three scenarios, all of which call for the three counties to shoulder the major portion of the financial risk (obviously some more than *coughdadecountycough* others), how does it not behoove the county leaders to seek a fair shake?
Having recently gone through a long period of un- and underemployment, I sympathize with employees who are worried about their jobs. But don't let that narrow your view into thinking this is as simple as Hutcheson being a '99 Ford Taurus that you can drive off today with a signature at your local ChEasy Auto Outlet. The reality is more complicated, with nuances beyond what most here are spouting.
Ms Givens- you are exactly right. As much as Bebe lies I am not sure she knows when she is lying or telling the truth. I often wonder how she hired Don Oliver when he should have lost his law license after being arrested for all the drugs in Atlanta and she also hired the investment banker that got arrested for sex in the mens bathroom in Atlanta.
Maybe we should all get arrested and Bebe will hire us.
The Dade County paper has reported that Dade Co has put up their share and is ready to sign but Walker is holding things up.
Les, you an Bebe must be cut from the same cloth, both full of it and think that you know all and everytime you open your mouth in the news you make more of a fool of yourself and it is very obvious that the county and the area needs LESS Les Coffey. The area will be much better off when the two of you are gone.
Bebe is playing--it's obvious. It's purely political, and not protecting the beloved taxpayers of Walker County.
She also keeps referring to not wanting to cause risk to "HER" taxpayers. Evidently, she doesn't understand the basic concept of this agreement which the collateral for the $20 million is the physical plant (the land and buildings) of the Hutcheson Medical Center. The physical plant is owned free and clear and is managed by the Hospital Authority Board. There is NO risk to taxpayers!
The references to Dade having no share in the hospital ownership is merely semantics on Bebe's part to try to make others look bad in order to push her personal agenda.
The woman is a power hungry, manipulative individual with a personal agenda. She obviously has no concept of what is required to run and maintain a hospital. She would be better served to limit herself to the things she knows something about, if anything, and accept the guidance of others who are better informed about those things which she is ignorant.
Mary L. Givens, MT (ASCP)
HMC Employee you have many valid point and I can understand you agrevation. I agree the board is as much responsible as anyone. The problem as I understand it is it was not that easy to get that board out of the mix. I think Bebe is right on this one. I did not agree with her on the Canyon Ridge deal.
LafayetteMoon: Bebe dumped Canyon Ridge in December. She never said anotherw word about it after that. That was long before the deed to the banks. I think she is angling for another term and that is why she dumped Canyon Ridge she heard and listened to the public.
Quack: You are just that a quack. Your just down right wrong man. Hutcheson is going nowhere and will be open. It may close for a few days or weeks but long term these folks will have a job and it will work out. The 3 county's will get it all worked out. It is just going to take time. When you are in the HMC Employees position it is hard to be patient.
This is another PERFECT example of the incompetent people in office not being able to do what is right for the people of the county. If Bebe and Don had gotten off her rear and headed this off at the pass by kicking the sorry bum out of his office a year or two ago we would not be in this propblem.
The idiotic thing is that Bebe was and is (she recently said "there will be a hotel built") more than willing to flush the our money and credit down the toilet on an unwanted and not needed hotel in a failed development but she is sitting on her hands as she drives yet ANOTHER employer away. This time it is the second largest employer in the county and one that provides a service to all the citizens of north GA.
Bebe is trying to make a move to insure her political legacy, along with another term in office--and it's going to backfire at the expense of the residents of Walker County and the employees of the hospital and their families. It's really sad.
Erlanger may not be the best option out there, but it IS our best alternative and the only option to fulfill the mission of what the hospital stands, and has always stood for,which is caring for those who can't care for themselves.
We have been mis-managed and handled poorly for many years. And the truth of the matter is that you can't just point the finger at one person. There was an entire team put into place just to govern that one person...so who is really to blame? The answer is, that it doesn't matter anymore. Let's just move forward and figure this out. There are many people who depend on this hospital to feed their families and those who depend upon us for their care. The time for bargain shopping is over! Erlanger is proposing a fair deal, let's take it. Let the building, which is owned outright be collateral for the $20 million debt, and not even involve the taxpayer.
Unfortunately the truth more than likely falls in the middle.
The employees of the hospital are not to blame. It is the board and the managment. They should be willing to step aside and let the tri county governments do their jobs and fix the problem.
I do think Bebe has an ultimate agenda. I think she wants to control the hospital. Of course after what has happened I would to if I were her.
There is no doubt that we need the hospital. There is no doubt it needs to be run by proffesionals not politicians. There is no doubt many innocent employees are going to be harmed. The truth is that is going to happen no matter what. I think Bebe is right on this one. If I were an employee of the hospital I would be prepared to mis a couple of paychecks during the turmoil, but would stick it out as I see light at the end of the tunnell even if Erlanger does not make the deal.
As for the county sending inmates to the hospital and not paying. The hospital board should not have ever allowed that to happen. They should have gone after the sherriff of each conty for that money. Do not think for one minute Erlanger won't go after them. They sue Hamilton County all the time for inmate invoices and treatment. If a person is in jail the sherriff is responsible for their medical bills. This may be part of the demise of Hutcheson. They were giving out free care when they should not have been.
Also Bebe looked at Canyon Ridge but in the end she decided not to get involved. It did not cost the county for her to look.
Bebe keeps talking about an increase in taxes by supporting this deal with Erlanger. She wasn't so concerned about where our taxes were going when she funneled millions into the now bankrupt golf course on the mountain. Didn't feel her concern for our wallets then. What is more important to this community, a golf course or a hospital that continually takes her indigent constituents? By the way, how about Walker County coughing up some money for prisoner health care that we have been giving for the past few years free of charge? Does anyone even realize that tax dollars from the tri counties have not been used at this hospital for many years?
A few questions:
If Don Oliver is practicing attorney for the Hospital Authority, but representing Bebe who is paying for him? Also, who paid the $8,000 to have the Barnes Group review the proposal from Erlanger? Was this a decision that the entire board made as a unit or was this decision from our own "one man show" Bebe?
It just seems that there may be a hidden agenda from our esteemed Commissioner. While she is throwing on the brakes for this deal, there are hundreds of employees who live in daily fear for their jobs. If, in fact, she has known about this problem for the past 10 years why is she just now stepping up to the plate?
Also, if Bebe can get a cheaper interest rate on a loan,will that be beneficial? Will she get the $300,000 lending fee dropped? Will she have the interest deferred for the first two to three years? Will management fees be forgiven? And will she personally recruit 15 new physicians and will she come out of pocket for a new administration to the tune of $1 million per year? If so, then by all means, step in here and DO IT! If not, then get out of the way and let the people who know how to run a hospital (Erlanger) partner with us to build something that everyone can be proud of.
Employees
If you read Oliver's response (posted elsewhere), you will see that what is trying to be rammed through here is a bailout of incompetent , corrupt management that ran this institution into the ground. You will realize that we taxpayers will be on the hook for a hospital that is currently operating at a whopping loss with negative cash flow and only a remote chance of turning itself around.
Everybody should be asking why we are being steamrolled on getting this contract signed. Did this only become a "crisis" when Regions Bank missed an interest payment ? Alarms should be going off in every taxpayers mind when governmental officials that usually work in geologic time suddenly start their hurry up offense. It's very suspicious.
Best guess : There are some elements in this deal that would not pass the smell test if opened to the light of day BEFORE being rammed through. There are some little ticking time bombs in this partnership that will end up skewering us and we will regret acting in such haste.That's probably why there is such a rushjob by the Hospital Board.
Remember, on a given day, there are no more than 18 patients in HMC. That is because of their arrogance,corruption and stupidity.Now would be a good time to let the people involved eat what they have cooked.