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Updated: Hospital parcel tax increase defeated; another try in June

Posted on March 8, 2017 by Sonoma Valley Sun

The ballot measure to raise the parcel tax in support of Sonoma Valley Hospital failed to gain the required two-thirds majority in Tuesday’s election. The Health Care District Board will meet in special session on Friday to consider and likely approve putting the measure — an increase from $195 per year to $250 — on the June ballot for another try.

With all 45 precincts counted Tuesday night, Measure B was approved by 64.8% — just shy of the 66.6% needed. The measure would increased the tax by 28%, a gain to the hospital of $800,000 each of the five years it would have been in effect.

If the measure fails again in the June 6 general election,  the parcel tax would expire on June 30 — a loss to the hospital of about $3 million annually.

“There was no organized opposition and no opposing ballot statement, yet the measure failed to get the required two-thirds vote, and lost with a ‘yes’ percentage well below the last three parcel tax elections,” stated  Boardmember Bill Boerum, who wants to see a long-range business plan “to eventually wean the hospital off the tax subsidy. Changes are needed in the Board’s mindset. This leadership has been content to let property-owners be left holding the bag with an increased tax.” Read his full statement below.

The vote count was 4,954 for, and 2,693 against, according to the County Registrar of Voters.

The special session, a public meeting, will be held in the hospital’s administrative conference room, 347 Andrieux St., March 9, at 10 a.m. It will be broadcast on SVTV 27 and streamed online at svtv27.com. The conference call-in number: #1-866 228-9900 Guest code: #29422.

Statement on Health Care District Parcel Tax Loss and Re-Submission, by Sonoma Valley Health Care District Boardmember Bill Boerum

Last night’s preliminary vote tally with Measure B failing to achieve 66.67% for approval, came as no surprise to me. It is a clear signal that a large segment of voters – despite improvements in quality and community engagement by the hospital – were tired of supporting an enterprise which consistently loses money, month after month, year after year. Their patience for an improvement in financial management ran out. Through seven months of this fiscal year, there was a $3,000,000 operating loss.

The macro-economic and micro-business factors underlying the negative operating margin are reflected in utilization of the hospital. A recent internal study I requested showed that utilization of the new surgical suites – funded by a general obligation bond and personal contributions – was only 50%. We should be working toward 65%. Hospital bed occupancy was only 47%.

It is my understanding that $50,000 was raised from generous, large donors and used to send multiple mailers to voters. There was no organized opposition and no opposing ballot statement, yet the Measure failed to get the required two-thirds vote, and lost with a “Yes” percentage well below the last three parcel tax elections.

For years, I’ve been trying to get the Board and the CEO to acknowledge that there is a structural imbalance in the financial dynamics of the business. What is needed is a business plan with milestone objectives over three to five years to eventually wean the hospital off the tax subsidy. Additional, new revenue streams have been needed to offset the growing preponderance of government program reimbursements. The Board has refused to pursue this course and to give direction to the CEO.

A disciplined business plan geared toward achieving self-sustainability along with enterprising management is needed. Changes are needed in the Board’s mindset. This leadership has been content to let property-owners be left holding the bag with an increased tax.

While a new, rolling three-year strategic plan – with encouraging tweaks and tactics – is being drafted, the Board needs to tackle the fundamental weakness in the hospital’s fragile financial condition. A business plan is needed as a bridge between the three-year strategic plan and fiscal year budgets.An emergency Board meeting was called this morning, Wednesday to react to yesterday’s vote. The discussion and the intention was to submit essentially the same parcel tax – with a few, new clarifying words – to the voters on June 6. The deadline at the County for a June 6 vote is this Friday.

There will be a “special” meeting Thursday the 9th to formally consider a Board resolution putting the parcel tax on the ballot. At this point pending any further discussion or information from the Board Chair and the CEO, I am leaning against a re-vote so soon. This is not a messaging issue.  END

 



9 thoughts on “Updated: Hospital parcel tax increase defeated; another try in June

  1. Don’t just submit the same thing to vote on again. Start by thinking about some changes and lowering the dollar amount. Then MAYBE….

  2. The first change should be a new CEO. The current CEO has lost the trust and respect of many in the community and staff at the hospital. The continued support of the CEO by the Board is baffling.

  3. The hospital has been losing a lot of money every quarter for years yet at board meetings they always paint a rosy financial picture. So much so that the CEO keeps asking for salary bonuses for herself and gets it.
    The Board (except for Borum) seem to be infatuated with the CEO and never asks to see P&L statements. The hospital can’t pay their vendors and they are lucky to keep the lights on, yet there has been no business plan for fiscal responsibility. The property owners are continually subsidizing the CEOs mismanagement. Kelly Mathers needs to resign and the Board all fired.

  4. It’s about time the hospital board gets serious as they’ve been delinquent of their fiduciary duties. First, the CEO needs to cut her high salary and not use the hospital as her personal bank for her personal businesses. Second, cut some of the layers of management. Then shut down unnecessary wings of the hospital that are not productive. Make the hospital no longer a full service hospital without enough patients. Revamp it or close it. We are tired of throwing our hard money into this money pit without a serious financial plan.

  5. Bill Boerum is the only Hospital Board Member who understands. His desire to have a five year business plan to wean SVH off of property tax falls on deaf ears. He has asked, many times, to have the CEO identify new services and revenue streams for income. Nothing!!
    The CEO is paid $400,000 a year. That is $1,095 a day, everyday, 365 days a year. Plus generous benefits.
    So it is their current opinion; “Not enough yes voters came out to vote. People don’t understand that the hospital will close without this money.”
    Well, people have been “saving the hospital” since 2007. Ten years and nothing is better, only worse!
    Money won’t save this hospital. A new CEO and a business plan MIGHT save it. Vote NO in June and force changes to be made!

  6. Here is my suggestion for new revenue sources for the hospital: Sonoma has been marketed as a luxury tourist destination. Capture some of that money by offering a cosmetic surgery/spa experience. People pay cash for face lifts, breast augmentations, butt augmentations, tummy tucks, liposuction, etc. The money generated from those procedures can offset emergency and basic health care for local residents. Depending on continuous property tax bonds is not feasible.

  7. Someone explain to me how 7yrs + doing same thing
    = anything other than same result?
    Continuing on this way guarantees SVH will close, The only questions remaining are:
    *When?
    *How much of our $ will this CEO will be able to grab before that happens?
    *How bad will we feel if, in the near furture, we pick up The Sun read:
    ‘…They say there was a chance to save it back in June, had the community got involved. Unfortunately now it really is too late’

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