West Volusia Hospital Authority,
131 E. New York Ave.,
P.O. Box 509,
DeLand, FLA 32721.

Dear Sirs:

To hand the draft Indigent Care Reimbursement Agreement dated 10-Aug-2000 between the Authority and the Adventist Acquisition Corporation. This item is subservient to the asset purchase agreement discussed separately.

This letter discusses only the above-referenced rider to the main contract, and not the referencing purchase and sale agreement.

This agreement calls for Adventist to be paid several times the current rate of indigent care reimbursement. No explanation is given for the more than ten-fold increase in indigents at Orange City between last year and this year, nor for the increase of a third at DeLand. A member of the public, examining the records made available, would be forced to conclude that the Authority is failing to protect the public’s interest from a rapacious private corporation.

I point out as particular flaws the provisions permitting the Adventists to set the rates without input from the public. These provisions are found in §5.2 and cover inpatient and outpatient care. As the Board may be aware, the medicare rates are established based on factors within the Hospital’s exclusive control. There may be some Sunshine issues inherent in these provisions.

I note also the provision in §6 that in no event shall the annual payment cap decrease from one year to the next. That is, once the price is ratcheted up, taxpayers have no hope of relief.

The provisions of §8 would appear to bind future Boards to levy certain taxes for the exclusive benefit of Adventist. Your attorney will upon request read for you and interpret the beginning of Article 7, Section 10, Constitution of Florida.

The effective provisions of this rider appear to be flawed beyond repair. I advise therefore that the indigent care agreement be scrapped and re-written from scratch, with care paid to protecting the interest of the taxpayers. I would also remind the Board that most hospitals provide charity care as a part of the cost of doing business; only in a few counties do we have taxes levied for this purpose.

Thank you for your attention to this matter.


Tanner Andrews

Posting of this letter is a paid political advertisement provided by Tanner Andrews, P.O. Box 1208, DeLand 32721, independent of any campaign or committee. This material is also on display at the offices of the West Volusia Hospital Authority. No candidate has approved this material.

from @(#)hosp0019.txt 1.0 14-Aug-2000

proc with @(#)hmac.ta2 1.1a 01-Jun-2000