Tuesday, October 18, 2011

The Northstar Report 2011 Q2

Northstar Hospital released its financial status
for the second quarter of 2011 showing additional
losses coupled with additional reduction in assets.


See: http://tinyurl.com/24os4hw

and

http://tinyurl.com/3sb73sv

The hospital has made some moves to get
experts in success involved in an attempt to
improve the financial situation. Bellen Health
from Green Bay has been in the community
lately helping with a reorganization. The
underlying question is, what has to be done
at this point?

There are two approaches to turning around
any failing business. The first one is to reduce
expenses. We’ve seen no signs of that. The
second is to improve income. The total Iron
County population in 2010 was 11,817 souls.
With a population that small, the marketplace
is quite limited for the services that Northstar
sells. To improve on that situation, the only
alternative is to increase sales by increasing
the cost of healthcare to the community,
necessarily resulting increased costs to the
nation as well. That problem currently has
significant national scrutiny.

This financial trouble for the citizens has
resulted from the failure of the City Iron River
to ask the necessary questions before
authorizing a large municipal bond. Published
below is the reported “discussion” and public
comment:


IRON RIVER CITY COUNCIL
PUBLIC HEARING
Issuance of bonds for Iron County Community
Hospitals, Inc.
Wednesday, May 21, 2008
2:00 P.M.
MINUTES
Mayor Charlotte Soderbloom called the Public
Hearing to order at 2:00 p.m. in the Council
Chambers at the Iron River City Hall.
Roll Call: Edward Marcell, Ray Coates, Roger
Zanon and Soderbloom.
Absent: Thomas Beber (out of town).
Also present: City Manager John Archocosky,
City Attorney Mark Tousignant, Treasurer
Suzanne Johnson and City Clerk Kathy Anderson.
OPEN PUBLIC HEARING
Public in attendance: Glen Dobson, Dennis
Powell, Rosalie King, Craig Richardson, Thomas
Angeli and WIKB reporter Wendy Shimun.

The purpose of the Public Hearing: to permit the
City of Iron River Hospital Finance Authority to
receive comment both written and verbal
concerning the proposal of the Authority to issue
hospital revenue and refunding bonds on behalf
of Iron County Community Hospitals, Inc. (ICCH).

ICCH representative Glen Dobson explained ICCH
plans to renovate the existing facility. Some new
construction is planned as well as upgrades to
equipment. Work is scheduled to begin in June,
and is anticipated to take fourteen months to
complete. Previously issued bonds (2002 & 2004)
will be refunded. A new bond (2008) will be issued,
not to exceed $24,000,000.

PUBLIC COMMENT

No public comment was forthcoming.

CLOSE PUBLIC HEARING
Soderbloom closed the Public Hearing
at 2:12 p.m.

Following this there was a regular meeting
that merely formalized the City’s approval:

“Zanon moved to approve a Resolution requested
by the City of Iron River Hospital Finance
Authority to issue bonds to the ICCH for
improvements to the existing facility located
at 1400 West Ice Lake Road, not to exceed
$24,000,000.

(See attached). Coates supported.
Roll Call: Ayes: 4: Marcell, Coates, Zanon,
Soderbloom. Nays: 0.
Absent: Beber. Motion carried.”

The minutes for the meetings are available on the
City of Iron River’s web page and are copied here
to illustrate this information. There wasn’t much
time devoted to making a commitment, on behalf
of the voters, of a little over 23 million dollars. We
know nothing of what, if any, other discussions were
held behind closed doors. No one has made such
information public. At the very least cash flow
projections should have been provided for public
scrutiny. The minimal exposure of information is
classic in Iron County politics and needs to end.

So just who is on this "City of Iron River Hospital
Authority" board? When and where are the public
meetings? Where are the minutes? And why aren't
they openly communicating with the City Council
regarding the liquidity problems the hospital is
experiencing. By contract, the hospital is required
to maintain 60 days cash on hand, and has only been
able to maintain 54. In the overall picture, this is
a significant failure.

And while we have great respect for Mr. Mark
Tousignant, this report would be incomplete without
mentioning the apparent conflict that exists in this
instance by his serving on the Board of Directors for
Northstar (then Iron County Community Hospital)
at the same time that he was, and continues to be,
legal counsel for the City of Iron River.

It also bears mention that the original ICCH
incorporation papers were drawn up and filed by
C. Joseph Schwedler who is today the Iron County
Judge. Schwedler has not been replaced in
subsequent corporation filings as the person to
contact regarding the hospital.

Bill Vajk

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