July, 1998
This article was written by the Consumers Union Southwest Regional Office.
1. Greene, Sarah, "Hospital's History Parallels Nation's Medical Trends," The Gilmer Mirror, August 30, 1995, p. 15A. Original Articles of Incorporation, Ford Memorial Hospital, December 2, 1980.
2. Original Articles of Incorporation, Ford Memorial Hospital, December 2, 1980.
3. Articles of Amendment to the Articles of Incorporation of Ford Memorial Hospital, June 27, 1986. 4 Restated Articles of Incorporation (with amendments), Baylor Medical Center at Gilmer, December 15, 1992.
5. I.R.S. Form 990, Return of Organization Exempt from Income Tax, Baylor Medical Center at Gilmer, fiscal year July 1, 1992 to June 30, 1993, Statement 4.
6. Greene, Sarah, "Hospital's History," p. 15A.
7. Modern Healthcare, "For the Record," November 9, 1992, p. 14.
8. I.R.S. Form 990, Return of Organization Exempt from Income Tax, Baylor Medical Center at Gilmer, fiscal year July 1, 1992 to June 30, 1993, Part VI, Line 79, Statement 13.
9. "HealthTrust Inc. to Purchase Baylor Medical Center at Gilmer," Business Wire, November 3, 1992.
10. Japsen, Bruce, "For Emergency Use Only: Columbia Won't Allow Former Hospital in Texas to Reopen as a Full-Service Facility," Modern Healthcare, June 9, 1997, p. 19.
11. Overton, Mac, "Nation's Largest Chain Closing Gilmer Med," The Gilmer Mirror, August 30, 1995, p. 1.
13. Overton, Mac, "Hospital Blues," The Gilmer Mirror, January 31, 1996, page 6A and Greene, Sarah, "Hospital's History," p. 15A.
1. Martin, Todd, "ACH Now Columbia Medical Center," The San Angelo Standard Times, posted April 3, 1996, http://www.texaswest.com/ standard-times; INTERNET. See also, Articles of Incorporation of ClinicHospital Foundation, November 24, 1969.
2. IRS Form 990, Return of Organization Exempt from Income Tax, Angelo Community Hospital, 1994, p. 5.
3. Interview with F.L. Stephens, President of the former Angelo Community Hospital Board, April 6, 1998.
5 . Lutz, Sandy, "Columbia/HCA in Deals for Two Not-for-Profits," Modern Healthcare, October 3, 1994, p. 10.
6. Interview with F.L. Stephens, President of former Angelo Community Hospital Board, January 26, 1998.
7. Lutz, Sandy, "Columbia/HCA in Deals for Two Not-for-Profits," p. 10. The hospital's tax forms indicate that the sale proceeds totaled $38,938,525; I.R.S. Form 990 for Angelo Community Health Foundation, 1995, support schedule #2, page 5, line 79. Our interview with Stephens (January 26, 1998) confirmed that Columbia paid off the hospital's debt. He also said that including cash reserves and miscellaneous assets the foundation received around $45 million.
8. Restated Articles of Incorporation, Angelo Community Health Foundation, April 26, 1995 and December 21, 1995.
9. I.R.S. Form 990, Return of Organization Exempt from Income Tax, Angelo Community Health Foundation, 1995, part 1, line 21.
10. San Angelo Health Foundation, Annual Report, 1997, p. 12.
11. Modern Healthcare, "It's a Keeper, Hospitals that will stay in the Columbia fold; Throw it back, Hospitals Columbia plans to spin off," November 24, 1997, pp. 22-24.
12. Interview with F.L. Stephens, April 6, 1998.
14. Robert Junell, Attorney for the San Angelo Health Foundation, letter to Dan Lynch, April 7, 1998.
15. Speech by John Vinson, Texas Assistant Attorney General, Consumer Protection Division, Charitable Trusts Section, "Texas Attorney General's Oversight of NonProfit Health Care Entities," delivered to the 10th Annual Health Law Conference sponsored by the University of Texas, Houston, Texas, April 17, 1998, p. 4.
16. Interview with F.L. Stephens, President of former Angelo Community Hospital Board, January 26, 1998.
17. Restated Articles of Incorporation, Angelo Community Health Foundation, Article 4, December 21, 1995.
18. F.L. Stephens, letter to Representative Glen Maxey, April 2, 1997.
19. San Angelo Health Foundation, 1997 Annual Report, pp. 8-12. Consumers Union SWRO, July 1998 Page 33 St.
1. Original Articles of Incorporation, St. David's Hospital, Article 2, December 29, 1924.
2. I.R.S Form 990, Return of Organization Exempt from Income Tax, St. David's Health Care System, Statement 22, p. 43, 1995.
3. Amended and Restated Bylaws of St. David's Health Care System, Inc. (F/N/A St. David's Hospital) A Nonprofit Corporation, p. 2, as appended to IRS Form 990, 1996.
4. St. David's Health Care System, "A Proposed Joint Venture Between St. David's Health Care System and Columbia/HCA Healthcare Corporation," April 1996 (draft).
6. Person, Susanna, "Columbia St. David's Venture Parallels San Antonio Deal," Austin Business Journal, November 3, 1995, Vol. 15, No. 36, Sec. 1, p. 1.
7. Todd, Mike, "Seton, St. David's Negotiate on Hospital," Austin American Statesman, March 10, 1994, p. 1.
8. Interview with Neal Kocurek, President and CEO of St. David's Health Care System, April 2, 1998.
9. Amended and Restated Bylaws of St. David's Health Care System, Inc., pp. 1-4.
10. Golz, Earl, "State Seeks New Valuation of St. David's," Austin American-Statesman, July 18, 1996, p. D1; and Partnership description provided by Neal Kocurek, April 2, 1998 (computer printout). According to Golz, Cain Bros. valued St. David's assets at $160 million and this figure served as the basis for the original partnership.
11. IRS Form 990, Return of Organization Exempt from Income Tax, Section 332, Disclosure Statement for St. David's Health Care System, 1996; and interview with Neal Kocurek, April 2, 1998; and Golz, Earl, "State Seeks New Valuation of St. David's," p. D1. According to news reports, St. David's was valued at $160 million, but the IRS Form 990 disclosure cited the fair market value at $116 million. Neal Kocurek declined to confirm the results of the Cain Bros. valuation or the exact financial details of the joint venture. He stated that the number on St. David's 990 tax forms should be the correct figure for the amount St. David's contributed to the Partnership. He also confirmed that Columbia/HCA paid off some of St. David's debt, but would not provide an exact number. Mr. Kocurek declined to confirm the financial amount Columbia/HCA contributed to the Partnership. He did confirm that Columbia/HCA's assets were slightly less than St. David's and that Columbia/HCA contributed the difference to the Health System and Foundation &endash; but he would not provide exact numbers.
12. Partnership description provided by Neal Kocurek, April 2, 1998.
13. Person, "Columbia-St. David's," November 3, 1995; and Interview with Neal Kocurek, April 2, 1998.
14. Interview with Neal Kocurek, April 2, 1998.
17. Partnership description provided by Neal Kocurek, April 2, 1998 (computer printout); and fax from Jack Campbell, St. David's Health Care Partnership, March 13, 1998.
18. John Vinson, Assistant Attorney General, Charitable Trusts Section, Office of the Attorney General, State of Texas, letter to Jack Campbell, December 21, 1995.
19. Golz, "State Seeks New Valuation of St. David's," p. D1.
20. St. David's Health Care System, "A Proposed Joint Venture Between St. David's Health Care System and Columbia/HCA Healthcare Corporation," April 1996 (draft).
21. Interview with Neal Kocurek, April 2, 1998.
22. Hale, Ellen, "Community hospitals often on short end of '50-50' ventures," Gannett News Service, October 13, 1996.
23. Internal Revenue Service, Rev. Rul. 98-15, 1998-12, Internal Revenue Bulletin, March 23, 1998, page 5.
24. Interview with Neal Kocurek, April 2, 1998
25. St. David's Foundation, "Working Together for a Healthier Community," December 11, 1997.
26. Interview with Neal Kocurek, April 2, 1998.
27. St. David's Foundation, "Working Together for a Healthier Community," December 11, 1997.
1. Restated Articles of Incorpora-tion, Providence Memorial Hospital, Article II, December 23, 1981.
2. Paso del Norte Health Foundation, 1996 Annual Report, p. 2.
3. Lutz, Sandy, "Tenet Inks Deal Worth $400 million," Modern Healthcare, May 22, 1995.
4. Dalton, Rex, "El Paso on Health Care Frontier," The San Diego Union-Tribune, July 26, 1996, p. A-1.
6. Kolenc, Vic, "How to Spend $130 Million," El Paso Herald-Post, November 16, 1996, p. A-7.
7. Paso del Norte Health Foundation, 1996 Annual Report, p. 2. See also Dalton, "El Paso on the Health Care Frontier," p. A-1. Dalton breaks down the sale price as $113 to $115 million plus an additional $15 to $17 million from the sale of land and other assets owned by Providence Memorial Hospital. At the end of 1995, the Foundation IRS 990 tax forms show net assets totaling $113,915,049; I.R.S. Form 990 for Paso del Norte Health Foundation, 1995, part 1.
8. Kolenc, Vic, "How to Spend $130 Million," p. A-7.
9. Paso Del Norte Health Foundation, "El Paso Health Report," January 1997.
10. Letter from Marcus Watts, Attorney for Paso del Norte Health Foundation, to Dan Lynch, April 16, 1998. We requested various transaction documents, including copies of the valuation estimate and the asset sales agreement. However, legal counsel for the foundation claims that the Nonprofit Corporation Act's public information requirements do not apply to these documents and they do not have to make them available to the public.
11. Dalton, "El Paso on Health Care Frontier," p. A-1.
13. Interview with Stan Roberts, El Paso City Council, April, 1998.
14. Dalton, "El Paso on Health Care Frontier," p. A-1.
16. Interview with Jim Johnson, Chief Financial Officer for the Paso del Norte Health Foundation, April 7, 1998.
17. Kolenc, Vic, "How to Spend $130 Million," p. A-7.
18. Paso del Norte Health Foundation, Annual Report, 1996, p. 1.
19. Restated Articles of Incorpora-tion (with amendment), Providence Memorial Hospital, Article 4, September 27, 1995. 20 .Paso Del Norte Health Foundation, Annual Report, 1996, p. 3.
21. Paso Del Norte Health Foundation, Annual Report, 1997, Statement of Activities and Changes in Net Assets. Paso Del Norte Health Foundation, Annual Report, 1996, Statement of Activities and Changes in Net Assets.
22. The IRS requires foundations to distribute five percent of average current year investment assets annually, with a grace period of one year to make up payment shortfalls, and a five year carry-forward for payments in excess of five percent in any given year.
23. Paso Del Norte Health Foundation, Annual Report, 1997, listed grants and commitments.
24. "Bulletin of Health Philan-thropy," Grantmakers in Health, December 15, 1997, page 4.
1. Amarillo Hospital District, General Purpose Financial Statements, September 30, 1995 and 1994, p. 9.
2. Resolutions of the Board of Managers of the Amarillo Hospital District, page 1; Boyd, Danny M., "Bosch Repeats Opposition, Predicts Sale Will Lose," Amarillo Globe-News, May 3, 1996; and interview with Dianne Bosch, Amarillo City Commissioner, April, 8, 1998.
3. Dodson, Shae, "History: Intense Public Interest Dominates Sale," Amarillo Globe-News, posted December 2, 1996 on: http://www.amarillonet.com; INTERNET.
4. Amarillo Hospital District,
General Purpose Financial Statements,
September 30, 1996, p. 13.
5. Asset Purchase Agreement among Amarillo Hospital District and UHS of Amarillo, Inc. (a wholly owned subsidiary of Universal Health Services, Inc.), February 6, 1996, section 2, p. 6. Indigent Care Agreement, May 7, 1996.
6. Dodson, Shae, "Medical: Year Marked by Mergers, Medical Community Realigned in 1996," Amarillo Globe-News, posted December 22, 1996 on http:// www.amarillonet.com; INTERNET.
9. Hale, Ellen, "When Public is Involved in a Hospital Sale, Deal is Usually Better," Gannett News Service, October 13, 1996.
10. Dodson, "History"; Boyd, "Bosch".
11. Hughes, Michael, "AHD Set to Close Deal," Amarillo Globe-News, May 7, 1996.
12. Indigent Care Agreement, May 7, 1996, Section 4, pp. 7-10.
14. Modern Healthcare, "UHS Buys City-Owned Hospital in Amarillo," May 13, 1996, p. 21.
15. Dodson, "History"; and < interview with Dianne Bosch, Amarillo City Commissioner, April 8, 1998.
