I Hate to Say "I Told You So"

It was four or five years ago when the folks at the then Thomason Hospital were telling anybody that would listen that they were "in the black" and turning a profit.  It appears that with thenew name (UMC) we've got a change in financial status - a situation I sadly predicted.

First of all, I like Jim Valenti and I think he does a hell of a job with what he has to work with.  None of what I'm about to write is criticism of how he's turned that place around.  He's worth every penny and so is his staff.

However...

The El Paso Times wrote up the proposed 7.9 percent tax increase HERE.  It looks like the County Commissioners will get to look at that number and negotiate on our behalf... or not... they may just accept it and move on.

I told all of you four years ago that UMC is not running "in the black" because it is propped up on tax dollars - free money.  The hospital mouthpieces did have to admit, under duress, that if their tax subsidy was every removed, they would not be able to cover costs with their direct revenue earned from patient care.  Nobody wanted to hear that truth. Not even my devout radio listeners.  I was an asshole for peeing on everyone's parade. 

God knows I love Veronica Escobar, but she was one of the ones out there touting UMC's "in the black" status.  She, and many others at the county, couldn't answer the question "So, now that you are making money, where's our tax rebate?"  You'd figure since they were making a profit and my tax dollars were the de facto ground floor capital for that surplus, I'd get my investment back.  Remember - it's a government hospital and profits aren't to be had.  They are to be distributed back to the taxpayers... in theory.

What we know now is what I've always said - they are solvent as long as the taxpayers give them free money.  When I write "free money" I mean - they get the fee, but don't provide the service.  It's as if a McDonald's was given $10,000 at the beginning of each day, but not required to give away one single hamburger for that money. It's easy to turn a profit each day with that five figure boost every morning. Hell, you could give away lunch and probably still turn a profit.   It's a great way to run a joint if you can find somebody to provide the dough.

I'm not going to get into the nuts and bolts of who they should serve and how they should operate in order to save money.  That's way too complicated of an issue for this time of the morning (as I write this the bars in El Paso are just closing... can't sleep these days).  Besides, there are parameters they have to operate under that are out of their control - i.e. state and federal regulations. 

I think the important lesson here is to remember that not everything you are told is 100 percent true and 100 percent permanent.  Obviously the state budget was out of UMC and El Paso County's control.  However, they could have better prepared the community for the shock by not tooting their own horn just a few years back. The have left taxpayers confused and now they must answer the hard questions.

Unfortunately, the next thing to tell us is that they are going to have to break a promise they made about the children's hospital.  Do any of you remember what that promise was?

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Again, this is not a criticism of how Valenti is running things - he's doing a great job and the new building is beautiful.  Please don't take your anger out on them.   Look at our state delegation if you want to bitch.

Comments

[Love that Tea Party]

We are beginning to feel the effects of the GOP controlled Texas legislature's last session. They and Rick Perry have their noses stuck up the ass of the Tea party that they don't want to raise taxes anywhere for any reason. The money has to come from somewhere. So, local taxing entities are left holding the bag, and looking like the bad guy.

Thank you Rick Perry. This is a vision of things to come if this idiot gets elected president.

[Mike]

Yes, a balanced budget is a TERRIBLE thing.

[Love the Tea Party]

Hey MIke, you have drank the TEA Party Juice!

Yummy! You cannot "Refuse the Juice!"

Balanced budgets are fine at the state level and make for great presidential talking points for jellyhaired candidates, but as we can see in the above example, stuff flows downhill..

Get yer shovel ready!

[Mike]

I don't have a problem paying taxes - if we could only get the 49% of Americans that pay no federal income tax to pitch in AND reduce spending in a number of areas, many of our tax problems would be greatly reduced.

Raising taxes on those families with annual incomes of over $1M is okay in my book. Raising it on $250K-$500K is crazy.

[Love the Tea Party]

Over 1400 Millionaires that pay no Federal Income Tax:

http://content.usatoday.com/communities/ondeadline/post/2011/08/irs-1470-millionaires-paid-no-income-tax-in-09/1

I guess it ain't just them illegal aliens huh cracker?

[wanna be millionaire]

1400 people - versus 49% of the working people in America - 300 Million + reduce for children under 18 and believe me there are still a lot fewer Americans paying taxes than the 1400 you picked out. LTTP thinks 2000 "millionaires" should pick up the tab for millions and millions of other people. Want everyone to pay taxes - then do not allow a single, solitary tax deduction or credit for ANYTHING! Not even dependents or standard deductions. No Earned Income credit - NADA. That would permanently end the conversation of who pays and who doesn't. Everyone is equal.

[Mike]

LTTP - Cracker? Really? I guess I'll just assume that you are non-anglo and call you the N word or some slur to Latinos. That would be polite, right?

WBM - sounds good to me!

[Wanna Be a Millionaire]

So it is okay for millionaires to game the system, but for poor people it is not? Thank you Rush Limbaugh. Party of Personal Responsibility! hahahaha!

As for those people that "NEVER PAY Income tax" you right wingers ALWAYS fail to mention that those same folks you try to demonize as some sort of evil cabal pay federal excise taxes, federal gas taxes, federal highway taxes, federal telecommunication fees on their phone bills, federal tire disposal fees, federal service fees etc etc etc. They pay into Medicare, and Social Security. So just because they are not paying an income tax does NOT mean they are not paying their fair share, As a matter of fact, as a percentage of income, they are probably paying much more in taxes when you include all the local and state sales taxes, property taxes and other fees.
That "They don't pay their share" argument is old and tired and racist. Can't you guys think of something new to to blame poor people for?