City officials pursuing VHS for some taxes

The Winchester Star ran two front page articles today.  Brief segments below:

Tax tiff

Winchester Medical Center and city officials zero in on application of the hospital’s tax-exempt status to property used for purposes other than traditional health care.

By Vic Bradshaw
The Winchester Star

---

Winchester--This year, the city government is performing its triennial assessment of properties owned by nonprofit organizations.

The timing, it appears, could not be better.

City officials and Winchester Medical Center have been in a bit of a tax tug-of-war recently, and the parties hope a fresh reassessment will provide some clarity regarding their differences.

At issue is the application of the hospital’s tax-exempt status to property used for purposes other than traditional health care.

“Valley Health needs to pay taxes — and that’s real estate taxes and personal property taxes and [Business, Professional and Occupational License] taxes — on things that are generating revenue for Valley Health,” said Jeffrey Buettner, the City Council’s president. “It puts them at an unfair advantage with the private sector, and that’s wrong. It’s a fairness issue. We’re not on a witch hunt here.”

For remainder of the article, click on this link:
http://winchesterstar.com/pages/view/tax.html

A different health club

Valley Health Wellness and Fitness Center doesn’t emphasize body-building or muscle-sculpting

By Lorraine Halsted
The Winchester Star

---

Winchester--On a recent Friday, Keith Edic walked past the rows of elliptical trainers, treadmills, and resistance training equipment in the the expansive sunlit room at Valley Health Wellness and Fitness Center. While the early-morning crowd had thinned out, the center was still bustling — with members milling around and working out on exercise machines — while a small free-weight room in the corner was sitting empty.

For remainder of the article, click on this link:
http://winchesterstar.com/pages/view/club.html

Reviewing the side-by-side comparison again with Lewis-Gale Medical Center

Salem officials sit on Lewis-Gale board
Roanoke Times & World News, Apr 4, 2010 | by Sarah Bruyn Jones


For at least a decade Lewis-Gale Medical Center has relied on the advice of Salem city officials in making decisions related to its hospital.

And Salem, with an estimated population of 25,400, has also relied on the strong relationship it has developed with its largest taxpayer and non-government employer. Lewis-Gale -- owned by for- profit HCA, which bills itself as the nation's leading provider of health care services -- contributes roughly $1.9 million in annual revenue to the city from business license fees, personal property taxes and real estate taxes. Lewis-Gale employs about 1,500 people, slightly fewer than the Salem Veterans Affairs Medical Center.

Most directly, the Salem-based Lewis-Gale hospital has solicited advice by appointing city officials to its board of trustees. Currently two officials sit on the Lewis-Gale advisory board. They are City Manager Kevin Boggess and Melinda Payne, director of the department of planning and development.

"They are going to understand the needs of the community and they can provide valuable advice and direction on the needs of the community," said Nancy May, spokeswoman for Lewis-Gale.

Payne has served on the board for about three years, while Boggess was just recently appointed. Boggess' city manager predecessor, Forest Jones, is a former board member.

Some ethicists question the arrangement.

"It seems to me that there is at least the potential for a conflict of interest to exist," said Rich Wokutch, a professor at Virginia Tech's Pamplin College of Business who specializes in business ethics.

After all, a city official could have to work with competitors of the hospital, or something beneficial to the hospital might not be in the best interest of the city.

Boggess, prior to joining the board, stood up at a public hearing to support Lewis-Gale's efforts to prevent Carilion Clinic from bringing a mobile imaging unit to Salem. More recently another competitor of Lewis-Gale has worked with the city in planning to develop an outpatient surgery center and medical offices on the former Elizabeth Campus.

"We're a free market," Boggess said when asked about the proposed Elizabeth Campus development. "And competition is good and the city of Salem has an interest in seeing that property developed."

Both Boggess and Payne said their first commitment is to the city government and their paid jobs. Lewis-Gale board members are not paid.

"Our positions are we are going to do what's in the best interest of the city. Always," Payne said. "That's what we have to do."

Boggess also emphasized that much of the advice he is asked to give focuses on internal hospital policy and personnel issues.

Wokutch said at the very least people in the position of Payne or Boggess should recuse themselves from decisions where even the appearance of a conflict of interest might exist. Both said they would do exactly that. Additionally, May said the board bylaws require every trustee to sign a statement listing all conflicts of interest.

"The trustee also agrees not to participate in any vote or deliberations on the matter," May said.

While the arrangement may raise some eyebrows among ethicists who discourage cozy relationships between government and business, one expert in hospital board structure said this situation is unique and harmless.

Typically James Orlikoff said he would vehemently oppose any hospital that appointed a government official to its board. But that's mostly in the case of nonprofit hospitals. For instance, Roanoke-based Carilion Clinic is a nonprofit and does not have any government officials on its board of directors, which has a governing instead of an advisory role.

Orlikoff, who is president of a Chicago-based consulting firm that specializes in hospital governance, said that for-profit hospitals that are part of the national HCA Inc. chain, such as Lewis-Gale, have an entirely different governance structure that makes the question of conflict moot. In short, the hospital's trustees really don't have any power and can make only recommendations, which may or may not be adhered to by management.

"The real power rests with the corporate board of HCA, not the hospital advisory board," Orlikoff said. "The bottom line is it doesn't matter what the board says, HCA is going to do what it wants to do to make a profit."

Remember the side-by-side comparison between Lewis-Gale and Winchester Medical Center?  If not, then follow this link on the post from November 9, 2009:

2007 Winchester Medical Center / Lewis-Gale Medical Center side-by-side comparison 

Vexing Dr. Havon Jr's statement and another deal in the works for VHS?

The Pub has to respectfully disagree with Dr. M Dean Havon Jr. in his statement in his letter titled "Hails passage of health-reform bill" that appeared in The Winchester Star on March 25th:

For those who would say the price tag is high, I say that all of us already are paying the cost of medical care for the uninsured. When you go to an emergency room and are diagnosed with a relatively mild illness, but still get a bill for more than $1,000, you are helping pay the hospital’s unreimbursed expenses incurred by others.

In our opinion locally, that emergency room $1,000+ bill for a relatively mild illness is a result of the following:

The Winchester Medical Center's profits alone from 2001-2007 increased 460%.

2001 - $11.8 million (per Quad State Biz Journal)
  '
  '
  '
2005 - $54,346,679 (per IRS990)

2006 - $57,422,678 (per IRS990)

2007 - $66,617,961 (per IRS990)

Also, that $1,000+ bill probably helped the former CEO/PRES of Valley Health System enjoy these impressive annual salaries.

2003 - $455,020

2004 - $620,432

2005 - $824,113

2006 - $730,318

2007 - $927,147

2008 - $1,036,579

Remember, the Winchester Medical Center is classified as a "not-for-profit" that receives the tax exempts perks.

Was anyone else taken aback that VHS tried to get a blanket exemption for their entire campus at 1840 Amherst Street?  Must give kudos to the City Assessor and Commission of the Revenue in making the recommendation to deny this blanket tax exempt request.

During the City Councils work session on March 23rd:

The council also forwarded by a 6-0-1 vote an ordinance to deny an application by Winchester Medical Center to grant tax-exempt status to its entire campus at 1840 Amherst St. Butler abstained. (Mike Butler abstained and Jeff Buettner was absent)

City Assessor Will Rice said the application represents an amendment to a previous request to declare the hospital’s diagnostic center tax-exempt.

City Manager Jim O’Connor said he hoped he could speak with representatives of Valley Health, which owns the hospital, and “work out an amenable solution.”

Not sure how anyone can dispute the fact that Valley Health System's epic growth spurts has cast some ill affects on our local private businesses and even tried to stop the Eye Surgery Center of Winchester from opening up on Amherst street.

Then vice president Larry Van Hoose is quoted, "We were against it because it was duplication of our services which tends to drive up health care costs"

At the City of Winchester's current tax rate of $0.77 and the 1840 campus property has an assessment of $272,214,900.00, this equates to $2,096,054.73 in tax dollars not in our city budget.

A few questions that are fair and reasonable:

With the recent passage of the Healthcare Reform bill, will there be a need for a "not-for-profit" hospital?

What will happen to the millions of dollars in charity care that VHS gives away annually with “ObamaCare” coming?

We have yet to receive answers to our questions in regards to the new Wellness and Fitness Center from any VHS representative in the letter that was in print back on October 16, 2009 on Wellness & Fitness Center.  Cick on the following link: “A year old, How’s the Wellness Center at the Hospital doing thus far?” 

For the record, requests have been sent to Mr. Mark Merrill (new CEO/PRES of VHS), Mr. Wes Williams (VP Marketing/Community Relations of VHS) and Mrs. Dena Kent (VP/President Valley Regional Enterprises) and even inquired over the phone with Mr. Merrill back on November 30, 2009.

To close, if VHS just paid their real estate taxes which appears to be very minimal when compared to the enormous profits that the WMC has turned out from $11.8 million in 2001 to $66.6 million in 2007, then would there be a need to keep raising our water rates and pondering whether or not to start charging residents for trash pickup?

If you agree, then contact your respective councilman and even Mr. O’Connor as the perception is that some type of another deal that is going to be worked out.  Review the deal that the Wellness and Fitness Center got, as it appears to be very much in favor of VHS in paying a reduced real estate tax which is affect for 50-years.

To avoid a lawsuit and trial, city officials and Valley Health reached a real estate tax agreement dated March 4, 2009.

The medical organization will pay a fee based on the city’s real estate tax rate as applied to one-third of the assessed value of the wellness center, according to the agreement.

The wellness center is assessed at about $11.2 million. A third of that would be about $3.7 million.

The city’s real estate tax rate is expected to be about 77 cents per each $100 of a property’s assessed value when the next fiscal year begins July 1.

Based on those figures, Valley Health would pay a $28,490 annual fee in lieu of real estate taxes.

The annual fee will be split into two payments due at the same times as regular real estate taxes — June 5 and Dec. 5.

The nonprofit organization’s first bill will be due in June, and will be assessed at the current real estate tax rate of 68 cents per each $100. That means the initial bill for the first six months of 2009 will be about $12,580.

Please review the attached letter that IHRSA (International Health, Racquet and Sportsclub Association) sent to Valley Health officials back on January 23, 2005.

IHRSA_Letter_BOD_VHS_2005_Page1.pdf

IHRSA_Letter_BOD_VHS_2005_Page2.pdf 

---------- Forwarded message ----------
From:
Date: Fri, Mar 5, 2010 at 12:05 PM
Subject: IHRSA letter to VHS BOD's back in 2005 (Wellness & Fitness Facility)
To: James Oconnor , Milt McInturff
Cc: fitnesszone@sportsplex.us, WinchesterVA@anytimefitness.com, fitness4me03@aol.com, stonebrooktennis@earthlink.com, winchesterva@goldsgym.net, barondesigns@aol.com, Adrian O'Connor , Vic Bradshaw , Alex Bridges , jrwilliams@nvdaily.com, James Heffernan , Lorraine Halsted , Maria Hileman , denise@tv3winchester.com, chanel@tv3winchester.com, James Tully , wendi@tv3winchester.com



Dear Jim and Milt,

I just got off the phone with Tim Sullivan from IHRSA and he informed me that the VHS BOD's never responded to the attached letter from 2005.

Please review IHRSA's recommendation on how VHS should operate the Wellness & Fitness Facility.


Respectfully shared,
Jeff Milburn

 


---------- Forwarded message ----------
From: Tim Sullivan
Date: Fri, Mar 5, 2010 at 11:34 AM
Subject: Re: IHRSA Letter to Valley Health BOD 2005
To: coachmilburn@gmail.com



Jeff,

Nice speaking with you. See if you have better luck opening the attached.

Tim

Tim Sullivan, Legislative Analyst
IHRSA, International Health, Racquet & Sportsclub Association
Seaport Center • 70 Fargo Street • Boston, MA 02210 USA

Winchester inks deal for 2011 World Series but who is footing the bill for the event training?

Exciting times for local youth baseball coming in August of 2011 but who will be footing the bill for City staff members traveling to Van Buren, Ark for the event training?  Who will be traveling and what will be the cost for travel, lodging and meal money?  What type of training is involved?


Veach said city staff members will be sent to Van Buren, Ark., a frequent World Series host, for event training this year. They will also travel to Purcellville in the summer to observe tournament operations as Loudoun County hosts the Babe Ruth 14-Year-Old World Series.


With Purcellville hosting the 14yr old World Series this summer, would it not be sufficient training for Winchester staff members to get quality training from Loudoun Babe Ruth since they will be hosting their 4th World Series since 1998?

Since Purcellville has hosted three World Series events to date and the forth coming this summer along with hosting several other previous South East Regional Tournaments, one could assume they know the in's and out's of running a World Series event, agree?

Valley Health Systems Top Salaries and Top Contractors

To build upon The Winchester Star's database of local salaries with the most recent information available to The Pub:

Valley Health System's Top Salaries and Top Contractors

WMC Campus Tax Exempt status on the agenda for Council Work Session

Tuesday, March 23  5:30 p.m. in Rouss City Hall, Council Chambers


One of the items on the agenda:
O-2010-12: Ordinance 

AN ORDINANCE TO DENY THE APPLICATION OF WINCHESTER MEDICAL CENTER FOR TAX EXEMPT STATUS BY CHARITABLE ORGANIZATION PURSUANT TO 27-33 OF THE WINCHESTER CITY CODE  (pages 16-22)

[This is a blanket exemption request for the entire campus] 

Financial Impact:
At the City of Winchester's current tax rate of $0.77 and the property having an assessment of $272,214,900.00, this equates to $2,096,054.73 in tax dollars.

Salary history on the MILLION dollar CEO for a local area non-profit

Just wanted to shared the total compensation package figures of this MILLION dollar CEO for a local area non-profit institution.

2003 - $455,020

2004 - $620,432

2005 - $824,113

2006 - $730,318

2007 - $927,147

2008 - $1,036,579

Source of information for years 2003-2005 was obtained from "wherethemoneygoes.com" and 2006-2008 were the IRS990's.  Years 2006 and 2007 were just Base Compensation and Contributions to employee benefit plan and deferred comp plans.  For year 2008, the compensation package went into a more detailed breakdown.

Local Area area non-profit had a MILLION dollar CEO in 2008

Despite difficult economic times, pay raises were plentiful for some individuals for one local area non-profit in 2008 despite the fact they showed less money made on paper vs. 2007.

This million dollar CEO got a pay raise that was worth a total compensation package of $109,426.

631,330 - Base Compensation

 60,000 - Bonus & Incentive Compensation

 15,007 - Other Compensation

301,193 - Deferred Compensation

 29,049 - Nontaxable Benefits

==========

$1,036,579

Stay tuned to become more informed!

The former Jimmy's Steakhouse Restaurant ... is there another side to that story???

Look for a local paper to have a more in-depth story about the former tenant being removed prematurely from a 20-yr option lease on the restaurant.

It was stated that two local construction companies already have contracts in place to do some work at the former local restaurant.

This source stated that after you learn more about this other side of the story, it just might make you think twice about supporting anything related to Shenandoah University.

Keep an eye on one of the local papers!

Wonder why VHS didn't adhere to IHRSA's recommendation back in 2005?

Please review the attached letter that IHRSA (International Health, Racquet and Sportsclub Association) sent to Valley Health officials back on January 23, 2005.

IHRSA_Letter_BOD_VHS_2005_Page1.pdf

IHRSA_Letter_BOD_VHS_2005_Page2.pdf 

---------- Forwarded message ----------
From:
Date: Fri, Mar 5, 2010 at 12:05 PM
Subject: IHRSA letter to VHS BOD's back in 2005 (Wellness & Fitness Facility)
To:
Cc:


Dear Jim and Milt,

I just got off the with Tim Sullivan from IHRSA and he informed me that the VHS BOD's never responded to the attached letter from 2005.

Please review IHRSA's recommendation on how VHS should operate the Wellness & Fitness Facility.


Respectfully shared,
Jeff Milburn

 


---------- Forwarded message ----------
From: Tim Sullivan
Date: Fri, Mar 5, 2010 at 11:34 AM
Subject: Re: IHRSA Letter to Valley Health BOD 2005
To:

Jeff,

Nice speaking with you. See if you have better luck opening the attached.

Tim

Tim Sullivan, Legislative Analyst
IHRSA, International Health, Racquet & Sportsclub Association
Seaport Center • 70 Fargo Street • Boston, MA 02210 USA

2011 10yr old Cal Ripken World Series is coming to Winchester

Congrats to WPRD officials, Winchester Baseball as well as City Council approving the $75,000 needed for Winchester Baseball to host the World Series BUT lets get within the ballpark on the number of visitors, the number of hotels that will be needed and how much money will be spent within our local community.

How many people can Winchester/Frederick County expect to see coming into the local community and how profitable can it be?

"Through all our banners, tickets, concessions, after everything was done, the committee made around $75,000," said Rick Akers, parks and recreation director for Lamar, Colo., which hosted the event last summer. "We still made money, and we gave back to the kids."

Lamar raised about $70,000 from sponsorships and about $20,000 in admission tickets. A souvenir booth made about $10,500.

"We had good participation, good attendance, but you didn't see a lot of grandmas and grandpas like we thought we would," Akers said. Rights to the tournament come with a $40,000 price tag, and Lamar paid for it with a tourism tax.

Lamar, CO drew 24 coaches and 114 players. Most stayed 10 days and played on a new field built with grant money. About 250 adults and 200 children stayed in 140 hotel rooms, according to provided data.

The information and quotes above is more in the ballpark than this quote back in February 19, 2009 in a story featured within the Winchester Star:

Citing an economic analysis that Babe Ruth Baseball does for host cities, Brad Veach said that areas normally generate between $1.2 and $2 million over the 10-day tournament. That money comes from hotels (an estimate of 700 rooms needed) meals at local restaurants, gas and other expenditures.

What will the replacement cost be for the Handley Bowl's A-Turf?

Finally had a some dialog with the principal at Fort Hill School, Mr. Lewis and had several questions for him about the Field Turf facility at Greenway Avenue Stadium.

What was the cost to replace the Turf?
The initial turf in 1998 cost $620,000 and the replacement turf in 2008 was $690,000
 
To clarify, what type of Turf was install and what was used to replace it?
Field Turf and the grass on the turf was shot - broken down from UV rays and wear

How was it funded?
Replaced turf was funded from money on ticket sales from games over the last 10 years games ($1 on each ticket goes into a stadium account at the Board of Education Office) and BOE money

This is phase 1 of the renovation project for the Greenway Avenue Stadium. 

Callas (Hagerstown firm) awarded $3.2 stadium contract

So with that in mind, just wonder what the replacement bill for the Handley Bowl A-Turf will be coming in the 2019 time-frame?

Pictured below is of Greenway Avenue Stadium in Cumberland, MD on the campus of Fort Hill High School.

For further information about the Greenway Avenue Stadium and the history, please click on the following link:

http://www.forthillfootball.net/stadium.htm

Some history on Winchester Baseball

The following article clearly makes mention that Winchester Baseball was operating under Little League Baseball with hopes to make it to Williamsport, PA.

Article from Winchester Star, July 14, 1953

From the information that was gathered, Winchester could not beat Front Royal to advance.

Reason being, Winchester had (8) regular season teams and Front Royal had (6) teams to draw from BUT under the Little League rules, I assume the magic number was 8 for the regular season teams which meant that Winchester had to field (2) All-Star teams (American and National).

This is being shared because there have been questions about Winchester Baseball not being under the Little League umbrella but this document supports that WB did operate under Little League Baseball during the 50's.

The History “facts” on Winchester Baseball

February 18, 2010

I am writing in reference to the nonfactual letter that Mr. Steve Cunningham wrote on February 10, 2010 “Just plain nonsense” that was in the Winchester Star.

To educate Steve and everyone else on the history of Winchester Baseball, I got in contact with two individuals who grew up when it first started.

The facts that were given to me were as follows:

Winchester has not been involved with Cal Ripken or Babe Ruth Baseball for close to 50 years.

Winchester started baseball in 1952, it organized under Little League Baseball.  Winchester Little League Baseball stayed under that program until the mid-late 50’s.

After Winchester dropped out of LLB, the program became independent as it was called “Little Baseball League”

It joined Bambino under the Babe Ruth organization in the early 1980s

In 1953 Winchester started a 13-14 league that was ran by the Jr. Chamber of Commerce.  It was under the Pony League Program.

The JC’s built the Henkel Harris Field for this program.  It stayed under Pony League for a number of years.  After adding 15 year olds they had to drop out and play independent for a few years.

They were playing 13-15 year program on a Pony League diamond.  In the late 60’s or early 70’s they moved the pitchers mound back but still played on Pony League dimensions.

Winchester did not become a member of Babe Ruth League until the early-mid 80’s.  

Mr. Cunningham is further quoted via online Winchester Star website on the article "City agency is working on a new pitch for series" ... in the comment section:

To bring a Babe Ruth/Cal Ripken World Series to Winchester Yost Field needs upgrades that Brad Veach is advocating.  And City Council should do all that they can to bring this wonderful family event to Winchester.

I agree that Bridgeforth Field needs some work....in light of recent improvements nothing has been done since the field was built, however, shouldn't Shenandoah University and Handley High School be responsible for some costs since they use the field as much as the Royals?

In recent years neighboring localities have put their money where their mouth is.  Warren County schools funded the renovations to Bing Crosby stadium to make it a wonderful facility.

Loudoun County was the recipient of a large donation to [upgrade] Fireman's Field in Purcellville and as a result now almost annually hosts a Babe Ruth World Series for ages between 16-18.

Let everyone who shares in using the fields at Jim Barnett Park share in the expense of the upkeep and stop relying on Winchester Baseball to foot the bill for all field maintenance.

Steve, what field maintenance are you talking about?  Please inform all on what WB does on a daily/weekly basis for maintenance on the baseball diamonds?

Handley HS has joint agreement between WPRD and Winchester Public Schools as they both share each others facilities.  Handley HS is doing the remolding work at Bridgeforth press-box, dugouts and backstop.

What are these other teams/leagues that you talk about that use the same facilities that WB utilizes?

Mr. Cunningham, the Rose Family in 1998 made the donation.  Loudoun Babe Ruth has hosted just (4) World Series events to date. (18, 16, 13 and 15 year olds)

I did make an offer a suggestion to help foot the bill on the World Series, Frederick County tax-dollars should be involved since most of the players come from there.  If anyone reads the papers, the budgets are getting hammered with the latest snow storms.  Hence, the reason even more so why Frederick County needs to get involved.  If it's going to be on the shoulders of just the City of Winchester, the perception in the local papers does not look promising after the great expense for snow removal.

How can the structure of the league be “causing ill effects on Handley Baseball”?  The numbers that I provided about Handley baseball speaks volumes.

To close, if you had researched, you would have discovered that I have been involved with the Winchester Baseball league from 1989-1994.

Finally I have never stated that WB should not host the World Series but in my own opinion, I do not think the City of Winchester should be the sole provider in footing the bill to host this 10yr old World Series, especially during these epic budget constraints!

Mr. Cunningham, in the future please do your research before commenting!

Last question, do the Winchester Baseball umpires volunteer their time like the “Little League” umpires?