Commissioner wants local hospital ownership

A Key West city commissioner Tuesday demanded the for-profit Lower Keys Medical Center go back to being a publicly owned or supervised hospital and released a proposal ordering the city attorney to launch an investigation into the medical center.

Commissioner Sam Kaufman, an attorney elected to office last fall, released the proposal in advance of Thursday’s public workshop set to address mounting local allegations of unfair billing practices and poor quality services at Lower Keys, owned by giant hospital owner Community Health Systems.

“They have failed miserably to live up to their own slogan: ‘Promises made. Promises Kept,’ ” the Rev. Stephen Braddock of Key West wrote to city leaders Monday.

A year ago, the hospital abandoned a lawsuit against Braddock that sought $1,975 in payment without an itemized bill after his insurance shelled out more than $35,000 for his shoulder surgery.

On July 15, the hospital’s CEO, Nicki Will, abruptly quit after 13 years in the job.

Rebecca Ayer, director of communications and public relations for Community Health, said in a Tuesday email:

"The team at Lower Keys is engaged in a thorough and deliberate effort to address concerns that have been raised in our community. Already, real progress is being made, and millions of dollars in investments are planned or underway. Everyone at the hospital is focused on meeting our patients’ needs, rebuilding relationships and exceeding community expectations.

“It is disappointing to learn of [Kaufman’s] resolution as we work to make positive changes at the hospital. Another legal challenge would be expensive and futile. If there is yet another legal challenge to the 17-year-old hospital lease, the court ultimately will decide whatever issue is brought before it. Instead, we would hope to work productively with our community to avoid protracted and expensive litigation.”

She said the company’s lease goes until 2029.

If Kaufman’s proposal wins approval at the commission’s Aug. 16 meeting, the city’s leaders would not only endorse the platform of a Key West-based movement calling for local oversight of the hospital but direct City Attorney Shawn Smith “to investigate and take appropriate legal action to cause the [hospital] to revert to a community-owned and managed facility or managed by a not-for-profit healthcare system supervised by community representatives.”

The City Commission’s hospital workshop starts at 6 p.m. Thursday at Old City Hall, 510 Greene St., but no votes are scheduled for the seven-member panel.

Based in Franklin, Tenn., Community Health — which owns, operates or leases 159 in 22 states with nearly 27,000 licensed beds — last week reported a second-quarter loss of $1.43 billion, or nearly $13 per share, for the three months ending June 30, 2016.

Operating revenues for the three months totaled $4.590 billion, a 6 percent decrease compared with $4.882 billion for the same period in 2015, CHS announced Aug. 2, along with a new valuation of the 10 unnamed hospitals put on the sale block in May at $169 million.

Harry Bethel, the former Key West commissioner who began organizing the local hospital watchdog group, said he can’t attend Thursday because he is recovering from back surgery.

“I well understand that Key West is far removed from the mainland and that there are probably many medical service which cannot be financially maintained in our community,” Bethel wrote to the city. “But I am extremely worried by the number of traveling doctors, traveling nurses and traveling medical technicians which this hospital touts as ‘employees.’”

This story was originally published August 10, 2016 at 10:20 AM with the headline "Commissioner wants local hospital ownership."