Tip:
Highlight text to annotate it
X
Captioning provided by Caption Associates, LLC www.captionassociates.com
IS KANSAS CITY'S NEW STREETCAR LINE IN JEOPARDY? NOW A LAWSUIT HAS JUST BEEN
FILED CHALLENGING THE PROJECT'S FUNDING. ALSO THIS WEEK, IS IT A QUESTION
OF BROKEN PROMISES ON HEALTH CARE? WE POUR THROUGH A MAJOR LEGAL
JUDGMENT AGAINST THE METRO'S LARGEST HOSPITAL CHAIN AND HAVE OUR OWN IN-DEPTH REPORT.
BIG POSITIVE NEWS AT THE GM FAIRFAX PLANT IN KCK, AND RAILROADING THIS WEEK A PERSON
SOME ARE DESCRIBING AS KANSAS CITY'S FIRST LADY. GREETINGS, EVERYONE.
I'M NICK HAINES, AND THANKS FOR BEING WITH US AGAIN ON THE PROGRAM THAT GOES BEYOND THE
SOUNDBITE AND TAKES YOU BEHIND THE HEADLINES MAKING NEWS IN KANSAS CITY, DISSECTING THE NEWS
THIS WEEK, KCTV 5 CHIEF INVESTIGATIVE REPORTER STACEY CAMERON, SAM ZEFF WHO HAS JOINED
THE KCPT TEAM ON INDEPTH NEWS ASSIGNMENTS AS PART OF OUR EXPANDING JOURNALISTIC COVERAGE,
JEFF FOX, BUSINESS EDITOR AT THE EXAMINER
NEWSPAPER, AND FROM THE KANSAS CITY STAR, REPORTER,
COLUMNIST AND BLOGGER DAVE HELLING. CONSTRUCTION IS SCHEDULED TO
START THIS SUMMER ON KANSAS CITY'S NEW TWO-MILE DOWNTOWN STREETCAR LINE, BUT IS THAT WORK
ABOUT TO GO ON AN INDEFINITE HOLD? A LAWSUIT IS FILED THIS WEEK IN
JACKSON COUNTY DISTRICT COURT CHALLENGING LEGALLALITY OF THE ONE CENT SALES TAX THAT FUNDS
MUCH OF THE PROJECT, BUT WHO IS BEHIND THE LAWSUIT? DAVE HELLING, YOU WERE REPORTING
THIS STORY THIS WEEK. WHO IS BEHIND IT? A WOMAN NAMED SUE BURKE AND A
GENTLEMAN KNOWN AS STRETCH. HE WAS ON OUR DEBATE SHOW. BOTH PROPERTY OWN OWNERS IN
THE DISTRICT BEING TAXED, THERE ARE SUGGESTIONS OTHERS ARE BEHIND THE EFFORT, BUT TWO MAIN
PLAINTIFFS, AND THE LAWSUIT THEY FILED SUGGESTS
THAT BOTH THE TRANSPORTATION DISTRICT FOR THE
STREETCAR IS ILLEGAL AND THE METHOD OF VOTING ON IT WAS UNCONSTITUTIONAL.
BUT THERE WAS NO ORGANIZED OPPOSITION WHEN THE ELECTION CAME UP, SO WHY NOW?
WELL, BECAUSE THE BUSINESS OWNERS, SOME, NOT ALL IN THE DISTRICT, THINK THAT TAXES ARE
ONEROUS, AND WE'VE TALKED ABOUT THIS ON THE SHOW OVER THE YEARS, NICK, AS THIS HAS BEEN
DISCUSSED, THAT THE TAXES ARE HIGH, THEY DON'T WANT TO PAY THE SALES TAX.
THE PROPERTY TAX IS UP THERE PRETTY GOOD, AND THEY FEEL LIKE THEY SHOULD HAVE HAD A VOTE ON
IT, SO IT'S JUST ANOTHER STEP IN THE PROCESS TO TRY AND HALT THIS TAX COLLECTION.
STACEY. ONE OF THE REASONS MIGHT BE A TECHNICALITY IN TERMS OF THE
LAW. THERE WASN'T THE ABILITY TO CHALLENGE THAT TAX UNTIL IT
ACTUALLY PASSED, AND SO NOW IT'S A RIPE ISSUE FOR
LITIGATION, AND AS TAXPAYERS, THEY MAY OR MAY
NOT HAVE STANDING TO SUE. SO I THINK IN TERMS OF THE BUSINESS OWNERS WHO WOULDN'T
HAVE BEEN ELIGIBLE TO VOTE ON THIS, THEY REALLY COULDN'T MOVE UNTIL THE TAX WAS PASSED.
IT SEEMS TO SOME PEOPLE, CERTAINLY ADVOCATES OF THIS, THIS IS ALL SOUR GRAPES, DOING
ANYTHING THEY CAN TO KILL THIS. THAT MIGHT BE CORRECT. YOU'RE TALKING ABOUT BUSINESS
OWNERS. I THINK THE ONE PART OF THE LAWSUIT THAT'S COMPLETELY OUT OF
THE NORM IS SAYING TAXATION WITHOUT REPRESENTATION. IF YOU DON'T LIVE IN THE
DISTRICT, THEN YOU DON'T HAVE A RIGHT TO VOTE IN THAT, SO POLITICALLY, THEY MAY HAVE
GOTTEN THE BALL ROLLING A LITTLE EARLIER, BUT AS
FAR AS LEGALLY, THIS WAS PROBABLY THE SMART MOVE
TO MAKE. JUST QUICKLY, THE CITY WENT TO COURT EARLY ON TO TRY AND
SORT OF PREEMPT THIS LEGAL STEP BY INESSENCE
ASKING A JUDGE TO DECLARE IT LEGAL BEFORE THE VOTE
EVER TOOK PLACE, WHICH ACTUALLY HAPPENED, SO THERE IS AN INTERESTING QUESTION AS TO WHAT
BASIS THESE PROPERTY OWNERS MIGHT NOW PURSUE THESE REMEDIES IN DISTRICT COURT.
THIS HAS BEEN SO IMPORTANT TO THE MAYOR. EVEN IF INDEED THERE ARE LEGAL
PROBLEMS HERE, WON'T THE CITY FIND SOME OTHER
WAY TO MAKE THIS HAPPEN EVEN IF THIS WAS STRUCK
DOWN, THIS POTENTIAL PART OF THIS FINANCING, BECAUSE THEY'RE NOT GOING TO LEAVE THE GIST OF
THIS PART, ALSO THE PROPERTY TAX ELEMENTS. THEY'RE CHALLENGING THE
PROPERTY TAXES BECAUSE OF THE WAY IT WAS VOTED ON. THEY SAY THAT WAS
UNCONSTITUTIONAL. EVERYONE YOU TALK TO, IF THE PLAINTIFFS PREVAIL, THE
MECHANISM FOR FUNDING THE STREETCAR WILL BE IRREPARABLELY DAMAGED.
IF THE SUIT PRESAILED, THEY WON'T HAVE -- PREVAILS, THEY WON'T HAVE A WAY TO PAY FOR IT.
SOME METHOD? DOZENS OF METHODS, BUT THIS HAS BEEN APPROVED BY VOTERS, PUT IN
PLACE, ENGINEERING HAS STARTED. IT WOULD SUFFER A MAJOR SETBACK IF THE SUIT PREVAILS.
MY QUESTION HERE IS, YOU KNOW, AFTER THIS TAX PASSED AND THE STREETCAR LINE APPARENTLY IS
GOING TO GO IN, JACKSON COUNTY JUMPED ON THIS,
AND SO IS THIS A WAY TO SORT OF HEAD THAT OFF AT
THE PASS? LET'S ASK JEFF FOX THAT QUESTION.
BECAUSE YOU'RE OUT THERE IN JACKSON COUNTY, SPEAKING TO JACKSON COUNTY OFFICIALS.
DOES THIS HAVE A CHILLING EFFECT ON THAT PLAN? WELL, POTENTIALLY.
IT'S EARLY, BUT THE PLAN THAT THE COUNTY EXECUTIVE, MIKE SANDERS, HAS IS BASED MOSTLY ON
COMMUTER RAIL, AND IT WOULD COME DOWN TO THIRD AND GRAND, WHICH IS THE NORTH END OF THE
STREETCAR LINE, SO THE TWO WOULD WORK TOGETHER. THE FIRST COUPLE OF LINES WOULD
RUN UP TO EASTERN JACKSON COUNTY, ONE TO INDEPENDENCE, BLUE SPRINGS, GRAIN VALLEY, ONE
THROUGH DOWNTOWN TO LEE SUMMIT. SANDERS SAID PROBABLY GOING TO TO THE BALLOT IN AUGUST,
PROBABLY A ONE CENT SALES TAX COUNTY WIDE TO GET IT GOING. EVENTUALLY THE PLAN IS SIX
LINES, THE AIRPORT, LIBERTY, KEARNEY, SPEEDWAY AND GRANDVIEW.
AS POLICY MATTERS, THESE ARE
VERY DIFFERENT, THE SANDERS' PLAN AND STREETCAR. AS POLITICAL MATTERS, THEY
MAY BE LINKED IN SOME WAYS BECAUSE THEY RELY ON SALES TAXES.
IN THE POWER AND LIGHT DISTRICT, THERE IS ALREADY A ONE CENT SALES TAX TO BUILD THE PARKING
GARAGES, AND THEN THE STREETCAR IS ANOTHER CENT ON TOP OF THAT. IF THE SANDERS PLAN PASSES,
THERE WOULD BE ANOTHER CENT ON TOP OF THAT, AND THEN THERE IS SOME DISCUSSION OF A STATEWIDE
TRANSPORTATION SALES TAX WOULD BE YET ANOTHER
PENNY, SO YOU'RE TALKING 15-CENT SALES TAXES IN
THAT DISTRICT. THAT'S PRETTY ASTONISHING. YOU'RE ALSO TALKING ABOUT --
YEAH, THE COUNTY PACE OF IT IS THE ONE CENT SALES TAX, PRESUMABLY IT MIGHT BE HALF
CENT. THEY'VE DONE POLLING. IT POLLS PRETTY WELL.
I THINK THE ISSUE YOU'RE GETTING AT, HOW DOES IT CLOUD THINGS?
IF THERE IS LITIGATION GOING ON
AND IF THERE IS A QUESTION OUT THERE, IS THERE GOING TO BE A STREETCAR?
I THINK THAT MAKES THE COUNTY'S JOB HARDER. A ONE CENT SALES TAX IN
JACKSON COUNTY DOES POLL WELL, YOU SAY? YEAH.
WE HAVE THE COUNTY EXECUTIVE ON THIS PROGRAM, AND IT SAYS ALL THE SUPPORT OF THE MAYORS.
IS THAT TRUE IN YOUR OWN REPORT SOMETHING. THEY WANT IT YESTERDAY.
THEY WOULD LIKE TO HAVE IT. THAT'S JUST NOT THE COUNTY EXECUTIVE SAYING THAT?
NO. A GOOD EXAMPLE WOULD BE CARSON ROSS, MAYOR OF BLUE BLUE
SPRINGS, ABSOLUTELY SEES IT AS A WAY TO REVITALIZE DOWNTOWN BLUE SPRINGS.
THERE IS A GOOD POINT OF MERIT IN THIS SUIT WHERE IT'S CLAIMING THAT THIS SALES TAX
WHICH WAS VOTED ON EARLIER THIS YEAR, LAST YEAR,
I SHOULD SAY, IS STACKING ON A ONE CENT SALES
TAX THAT ALREADY EXISTS. IN THE CODE, THE LANGUAGE IS A LITTLE QUESTIONABLE.
A JUDGE IS GOING TO DECIDE THIS, BUT THEY VERY
WELL MAY BE RIGHT THAT THERE IS ALREADY ONE CENT
TRANSPORTATION SALES TAX IN PLACE THAT IF THE COURT DECIDES THIS IS A STACK, THEN THAT
FINANCING SCHEME WILL BE COMPLETELY KNOCKED OUT. I DO NEED TO MOVE ON.
SO IS CITY HALL GETTING NERVOUS? THEY THINK THEY WILL WIN ON THE MERITS.
THEY ARE FAIRLY CONFIDENT OF THAT. BUT WHENEVER YOU GET TO COURT,
THINGS CAN CHANGE. IT WAS A STORY THAT BROKE SO LATE LAST WEEK WE WEREN'T ABLE
TO DISCUSS IT. A JACKSON COUNTY JUDGE AWARDS THE HEALTH CARE FOUNDATION OF
GREATER KANSAS CITY $162 MILLION IN A JUDGMENT
AGAINST THE OWNER OF THE LARGEST HOSPITAL SYSTEM
IN OUR METRO. THE FOUNDATION SUED HCA, WHICH IN 2002 PURCHASED ALL OF THE
FORMER HEALTH MIDWEST HOSPITALS ALLEGING IT HAD
NOT DELIVERED ON PROMISES FOR CHARITABLE CARE AND
CAPITAL IMPROVEMENTS AT THE FACILITIES, WHICH INCLUDE OVERLAND PARK REGIONAL, MENORAH
AND RESEARCH. IT WAS A MASSIVE RULING THAT CAPTURED NATIONAL ATTENTION,
INCLUDING A STORY IN THE NEW YORK TIMES. KCPT SPECIAL CORRESPONDENT SAM
ZEFF POURED THROUGH THE 140 PAGE COURT RULING THIS WEEK. TO UNDERSTAND, JUST HOW BIG
THIS RULING IS, YOU HAVE TO UNDERSTAND JUST HOW BIG A FOOTPRINT HCA HAS IN KANSAS
CITY. ANCHORED BY RESEARCH MEDICAL CENTER ON MEYER BOULEVARD, HCA
HAS NINE HOSPITALS IN MISSOURI AND KANSAS THAT
RING THE METRO. BY SOME ESTIMATES, IT COMMANDS
35 TO 40% OF THE MARKET. AND HCA IS THE LARGEST FOR-PROFIT HEALTH CARE COMPANY
IN AMERICA. IT SHOWED A 360 MILLION-DOLLAR PROFIT IN ITS LAST QUARTERLY
REPORT. MAKE EVERYBODY UNDERSTAND THE SIGNIFICANCE OF THIS OPINION
FROM THE JACKSON COUNTY CIRCUIT COURT. IT VIND -- VINDICATES THE
INTEREST OF ALL THOSE NEIGHBORHOOD PEOPLE WHO BECAME CONCERNED WHEN THE DEAL WAS
FIRST ANNOUNCED. LANDON ROLAND IS THE FORMER CHAIRMAN OF THE KANSAS CITY
HEALTH CARE COMMISSION, AND SOMEONE WHO WAS WORRIED ABOUT HCA FROM THE VERY BEGINNING.
NOT ONLY WAS IT A FOR-PROFIT COMPANY BUYING NONPROFIT HOSPITALS, BUT IT WAS THE
LARGEST TRANSFER OF NONPROFIT ASSETS TO A FOR-PROFIT COMPANY IN THE HISTORY OF THE COUNTRY.
THESE HOSPITALS WERE LARGELY CREATED BY
RELIGIOUS GROUPS OR RELIGIOUS AUTHORITIES, SOME OF
THEM IN THE LATE 19th CENTURY. A GREAT CONCERN
ABOUT HEALTH MIDWEST, OF COURSE, FIRST GOING
OUT AND THEN SELLING AND POSSIBLY SELLING TO A FOR-PROFIT HOSPITAL ORGANIZATION.
BISHOP MARK TOLBERT FROM VICTORIOUS LIFE CHURCH WAS IN THOSE EARLY TALKS WITH HCA.
HE TOO WAS WORRIED ABOUT TURNING OVER CHARITY HOSPITALS FOR A FOR-PROFIT CORPORATION, BUT HE
BELIEVES HCA HAS HELD UP ITS END OF THE DEAL. I STILL FEEL THAT IF HCA,
BECAUSE THEY HAVE PROVEN THEMSELVES TO BE GOOD COMMUNITY PARTNERS, THEY'VE DONE A LOT OF
THINGS UP AND DOWN PROSPECT. THEY'RE WORKING WITH COMMUNITY DEVELOPMENT ORGANIZATIONS TO TRY
AND IMPROVE THOSE AREAS EACH ON TROOST NEAR WHERE THE OLD BAPTIST THEY'RE TALKING ABOUT
PUTTING IN, SENIOR CITIZEN LIVING, WHICH IS SOMETHING THAT WE NEED IN THE URBAN CORE.
TO EASE THE WAY FOR THIS UNPRECEDENTED HOSPITAL DEAL, HCA AGREED TO SOME THINGS THE
COMMUNITY DEMANDED. IT FUNDED TWO HEALTH CARE FOUNDATIONS, ONE IN MISSOURI AND
ONE IN KANSAS, WHICH MAKE HEALTH-RELATED GRANTS. BUT IT ALSO AGREED TO TWO THINGS
CENTRAL TO THE LAWSUIT, TO SPEND $450 MILLION TO UPGRADE EXISTING HOSPITALS AND TO PROVIDE
$500 MILLION IN CHARITY CARE. IN A 140 POIJ -- PAGE RULING JACKSON COUNTY JUDGE JOHN
TORNENCE SAID THEY FAILED ON BOTH ACCOUNTS. IN 2002, THESE HOSPITALS, 8 IN
MISSOURI, 3 IN KANSAS, WERE STARVED FOR CASH AND IN DESPERATE NEED OF REPAIR AND
UPGRADING. HCA CAME TO TOWN AND PROMISED THE COMMUNITY AND REGULATORS
THAT IT WOULD FIX THEM. BUT ACCORDING TO COURT DOCUMENTS, ANOTHER PLAN FROM HCA
BEGAN TO EMERGE. FIRST, HCA CLOSED BAPTIST LUTHERAN HOSPITAL.
THEN IT CLOSED LEE'S SUMMIT HOSPITAL, MEDICAL CENTER OF INDEPENDENCE AND INDEPENDENCE
REGIONAL HEALTH CENTER. IT THEN SPENT $343 MILLION TO BUILD TWO NEW HOSPITALS IN FAST
GROWING EASTERN JACKSON COUNTY, LEE'S SUMMIT
MEDICAL CENTER AND CENTER POINT MEDICAL CENTER IN
INDEPENDENCE. AND IT SEEMED TO ME THAT HCA WAS LOOKING TO TREAT PATIENTS IN
PARTS OF THE METRO WHERE THERE'S A PRETTY GOOD CHANCE THEY'RE INSURED.
VERY HARD TO SEE HOW THEY COULD AVOID MOVING THE ENTERPRISE TO WHERE THE DOLLARS
ARE. IN FACT, THIS CONFIDENTIAL HCA MEMO ENTERED AS EVIDENCE AT
TRIAL SAID THE SAME THING. THE REPLACEMENT FACILITY, THE MEMO SAYS, IS LOCATED TO THE
EAST OF THE EXISTING HOSPITALS WITH A YOUNG AFFLUENT DEMOGRAPHIC MIX.
CONSERVATIVELY, THE PERCENTAGE OF MANAGED CARE BUSINESS IS EXPECTED TO INCREASE 43% BY YEAR
5. IN SHORT, FEWER POOR PATIENTS MEANS MORE PEOPLE WITH HEALTH
INSURANCE. WE ASKED SEVERAL TIMES FOR HCA TO APPEAR ON CAMERA.
IT SENT THIS STATEMENT INSTEAD. OBVIOUSLY WE ARE
DISAPPOINTED IN THE COURT'S RULING AND WE INTEND
TO APPEAL RATHER THAN SIMPLY PUT MONEY IN THE REPAIR OF OLD FACILITIES, WE BUILT TWO NEW
HOSPITALS, SPENDING HUNDREDS OF MILLIONS OF
DOLLARS TO INSURE THIS COMMUNITY HAS HIGH QUALITY
CARE. NOW, HCA IS PART OF THE DEAL -- AS PART OF THE DEAL WAS
SUPPOSED TO ALSO PROVIDE $65 MILLION A YEAR IN UNCOMPENSATED OR INDIGENT CARE,
BUT ACCORDING TO THE JUDGMENT, IT WAS IMPOSSIBLE TO TELL WHETHER THE COMPANY HAD MET ITS
CHARITABLE HEALTH CARE COMMITMENTS BECAUSE OF THE COMPANY'S FINANCIAL ACCOUNTING,
ACCORDING TO THE JUDGMENT. WHAT IS HCA'S RESPONSE TO THAT? YOU COVERED THE STORY AS WELL,
JEFF. THEY'RE GOING TO APPEAL AND KEEP GOING.
THEY DIDN'T ACCEPT WHAT THE JUDGE HAD COME WITH, SO THEY'RE PRESSING AHEAD.
SAM. I THINK WHAT WAS ASTONISHING IN THE RULING IS THEY HAD NO
IDEA HOW MUCH CHARITABLE CARE THEY HAD HANDED OUT. IN ONE PUBLICATION, THEY SAID IT
WAS $48 MILLION. IN ANOTHER THEY SAID IT WAS 87 MILLION DOLLARS, AND IN A THIRD,
$185 MILLION, AND THIS IS WHAT LED THE JUDGE TO
RULE AND DEMAND A FORENSIC AUDIT FOR EVERY YEAR
THAT HCA HAS BEEN HERE. A FORENSIC AUDIT IS REALLY THE CSI OF AUDITS.
THEY WILL GO BACK AND MATCH EVERY PURCHASE OVER A CERTAIN AMOUNT WITH A PURCHASE ORDER OR
THE INVOICE OR THE CANCELLED CHECK TO TRY AND RECONCILE THIS AND FIND OUT EXACTLY HOW MUCH
DID THEY GIVE TO CHARITY AND THERE WAS SOME DISPUTE OVER HOW MUCH CAPITAL THEY SPENT, AND
THEY DID, IN FACT, SPEND MILLIONS OF DOLLARS TO UPGRADE EXISTING HOSPITALS, BUT THERE IS
SOME DISPUTE ABOUT HOW MUCH THEY ACTUALLY SPENT,
AND THAT'S WHAT THIS FORENSIC AUDIT IS GOING TO
DETERMINE. ONE OF THE IMPLICATIONS OF THIS IS THAT HCA ALSO IS LOOKING
TO PURCHASE TWO MORE ADDITIONAL HOSPITALS IN OUR METROPOLITAN AREA.
ONE OF THEM IS ST. JOSEPH MEDICAL CENTER IN ST. JOSEPH, THE OTHER IS ST. MARY'S HOSPITAL
IN BLUE SPRINGS, WHICH IS PART OF THE EXAMINER'S NEWSPAPER'S AREA.
IS THERE A SENSE OF NERVOUSNESS IN THAT COMMUNITY NOW AS A RESULT OF THIS AUDIT?
THERE VERY MUCH IS A VERY GRAVE CONCERN IN BLUE SPRINGS ABOUT THE FUTURE OF THE HOSPITAL
SINCE HCA IS THE LIKELY BUYER. THEY'RE IN ESSENTIALLY DUE DILIGENCE AT THIS POINT.
SOME OF THE FOLKS AT THE FOREFRONT OF THIS CAMPAIGN HAVE SAID THAT COULD WORK OUT, IT
COULD WORK OUT FINE. IT MAY VERY WELL BE THAT HCA HAS THE RESOURCES NEEDED TO KEEP THE
HOSPITAL GOING, MAKING INVESTMENTS NEEDED TO BE MADE. OTHERS ARE VERY WORRIED ABOUT
WHAT HAPPENS. I THINK THE PIECE WE HAD TOUCHED ON ANOTHER PIECE OF IT, WHICH IS
THAT THAT HOSPITAL -- WELL, BOTH OF THEM, BUT SAINT MARY'S HAS ITS ROOTS IN THE TRADITION OF
HOSPITALS THAT COME OUT OF RELIGION, COME OUT OF CHURCHES, AND THE WORRY IS THAT THAT'S
GOING TO GO AWAY. THIS IS THE BLUEPRINT IN THE FACE OF HEALTH CARE AS WE GO
FORWARD WHEN WE MOVE AWAY FROM NONPROFIT HOSPITALS THAT WERE OPERATED BY EITHER LOCAL
GOVERNMENTS OR NONPROFITS, CHARITIES, CHURCHES AND THE LIKE TO A PROFIT SECTOR MODEL, WHERE
YOU SEE THE COMMUNITY CONNECTION GO AWAY AND THERE'S GOOD AND THERE'S BAD WITH THAT.
YOU START TO LOSE THE QUALITY OF CARE CONNECTION,
BUT YOU ALSO START TO GET LARGE CORPORATIONS
LIKE HCA THAT CAN DIVERSIFY AND SPREAD THE COSTS OUT. WE ALSO START TO SEE ONE OF THE
REASONS THEY PURCHASE UP THESE SMALLER HOSPITALS IS GOING BACK TO OBAMACARE, WHERE YOU SEE
THERE ARE GOING TO BE REDUCED RATES OF REIMBURSEMENT FOR MEDICAID AND MEDICARE, SO TO
SPREAD THOSE COSTS OUT, HOSPITALS LIKE ST. MARY'S CAN NO LONGER AFFORD TO STAY IN
BUSINESS, AND THEY'RE SELLING. I DON'T THINK THIS RULING IS GOING TO EFFECT THE BOARD AT
ST. MARY'S FROM SELLING AND I DON'T THINK IT'S GOING TO STOP HCA.
GREAT POINT. LET'S GO BACK IN TIME WHEN HEALTH MIDWEST COULDN'T AFFORD
GOING THE WAY THEY WERE. THAT'S WHY THEY SOLD TO BEGIN WITH.
WE ALSO HAVE THE STORY IN NORTH KANSAS CITY WHERE THE CITY IS LOOKING TO WHETHER THEY CAN
CONTINUE TO OWN NORTH KANSAS CITY HOSPITAL. THIS IS PLAYING OUT IN LOTS OF
OTHER AREAS AS WELL. EXACTLY RIGHT. BECAUSE ONE OF THE THINGS THAT'S
HAPPENING IN HEALTH CARE IN OUR COUNTRY IS THIS CONSOLIDATION AS THE ECONOMY AS A SCALE.
MY GUESS, IS BECAUSE HCA IS A PUBLIC COMPANY,
PUBLICLY TRADED, THAT THE PRESSURE WILL GROW FOR
THEM TO SETTLE THIS CASE. I DON'T KNOW IF THOSE DISCUSSIONS ARE GOING ON, BUT
YOU WOULD GUESS THAT BECAUSE OF THIS JUDGMENT
THAT WAS ENTERED AND THE ACCRUING INTEREST THAT
NOW BEGINS TO PILE UP THAT THAT COULD GET OUT OF HAND PRETTY QUICKLY FOR THAT COMPANY AND
THAT THERE WOULD BE A REAL INCENTIVE FOR THEM TO SETTLE AND FRANKLY AN INCENTIVE FOR THE
FOUNDATION TO SETTLE AT AS WELL, BECAUSE THE QUICKER THEY CAN GET THE MONEY THE BETTER.
A BIG CHECK TEN YEARS FROM NOW IS IMPORTANT BUT NOT THAT HELPFUL.
THE OTHER THING IS, I ASKED ROLAND ABOUT THIS. THIS PENALTY WOULD PRESUMABLY GO
TO INDIGENT CARE, AND HE SAID STILL NEED THE HEALTH LEVY. $162 MILLION IS THE FLOOR.
THERE IS NO CAP ON THIS. THIS CAN RISE TO WHATEVER THE FORENSIC AUDIT SAYS IT SHOULD
RISE TO. I WANT TO MAKE TWO POINTS VERY CLEAR HERE.
ONE IS, HEALTH CARE FOUNDATION OF GREATER KANSAS CITY FUNDS HEALTH CARE COVERAGE ON THIS
STATION, VERY IMPORTANT POINT. NO. 2, NOT EVERYBODY
UNDERSTANDS WHAT THE HEALTH CARE FOUNDATION
DOES. IF THEY GET MONEY FROM THIS PARTICULAR JUDGMENT, FROM THIS
LAWSUIT, WHAT WOULD HAPPEN TO THAT 162 MILLION, THE HEALTH CARE FOUNDATION OF GREATER
KANSAS CITY MAKES GRANTS TO ORGANIZATIONS THAT PRESUMABLY THEN GOES TO HELP HEALTH CARE
ORGANIZATIONS IN THIS COMMUNITY. ISN'T THAT CORRECT, SAM? ABSOLUTELY.
THEY DO ALL KINDS OF GRANTS FOR THAT. LET ME ALSO BE CLEAR THAT THE
FOUNDATION THAT WAS CREATED IN KANSAS WITH THE
PROCEEDS FROM THE SALE OF HEALTH MIDWEST, THAT
FOUNDATION CHOSE NOT TO PARTICIPATE IN THIS LAWSUIT. SO ANY JUDGMENT GOES JUST TO THE
HEALTH CARE FOUNDATION OF KANSAS CITY. THE CEO OF GENERAL MOTORS
HEADS TO TOWN THIS WEEK TO ANNOUNCE THE BIGGEST EVER PLANT INVESTMENT IN THE COMPANY'S
HISTORY. I'M HERETO ANNOUNCE TODAY THAT WE ARE INVESTING AN
INCREMENTAL $600 MILLION IN THIS PLANT. [ APPLAUSE ].
AS YOU CAN SEE FROM THIS FOOTAGE FROM NBC ACTION NEWS, LOTS OF JUBILATION THIS WEEK AT
THE FAIRFAX PLANT IN KANSAS CITY, KANSAS, WHICH EMPLOYS 4,000 PEOPLE.
THE AUTOMAKER SAYS THEIR 600 MILLION-DOLLAR INVESTMENT WILL MAKE THE KCK FACILITY THE
CROWN JEWEL OF GM'S MANUFACTURING UNIVERSE. WHAT IS THE SIGNIFICANCE OF THIS
ANNOUNCEMENT? BECAUSE THEY'RE NOT TALKING ABOUT ADDING ANY JOBS HERE.
WELL, IT ISN'T OVERWHELMINGLY SIGNIFICANT, BECAUSE I THINK EVERYONE ASSUMED THESE
IMPROVEMENTS WERE COMING FOR SOME TIME. I THINK IT WAS JUST A FORMAL
ANNOUNCEMENT. BUT WHAT IT DOES DO IS SHOW THAT THE AUTOMOBILE INDUSTRY IN
KANSAS CITY IS SECURE FOR SOME TIME TO COME,
BOTH BECAUSE OF WHAT'S HAPPENING IN CLAYCOMO AND
WHAT'S HAPPENING IN FAIRFAX. THAT SUGGESTS THAT UNLIKE OTHER COMMUNITIES THAT ARE NOT
DETROIT, WHICH HAVE SEEN THE AUTOMOBILE CONSTRUCTION INDUSTRY REALLY LEAVE, THE KANSAS CITY
AREA IS IN PRETTY GOOD SHAPE FOR THAT FOR ANOTHER
DECADE OR MORE. LET ME JUST PUT THIS UP ON
SCREEN, AND I'LL GET YOUR REACTION WHICH THE AUTOMOBILE MAGAZINE LAST YEAR LISTED THE
MOST PRODUCTIVE CAR PLANTS IN AMERICA, AND ONLY ONE CITY HAD TWO PLANTS IN THE TOP 10.
KANSAS CITY, AND THAT IS NO. 1 WAS THE FORD CLAY CLAYCOMO PLAN. AND NO. 10, FAIRFAX.
THAT'S PRETTY AMAZING. SURE. WHAT ECONOMIC DEVELOPERS WILL
TELL YOU IS IT'S JUST AS IMPORTANT TO HANG ON TO JOBS, TO RETAIN JOBS, AS IT IS TO GO LAND
THE NEXT BIG PROJECT, AND BOTH OF THESE PLANS ILLUSTRATE THAT POINT.
THAT'S WHY MISSOURI DID WHAT IT DID AT CLAYCOMO. AND THAT HAS SPINOFF JOBS FOR
DECADES. NOT ONLY PAYING JOBS, QUALITY JOBS.
THAT'S THE GOOD NEWS. BUT WE DON'T SEE OURSELVES AS THIS SORT OF AUTOMOTIVE CAPITOL
IN A SENSE NOW, DO WE? I DON'T THINK WE DO. WHEN I SAW THE STORY, I THOUGHT,
ARE WE THE NEW DETROIT? THE DETROIT OF HENRY FORD AND GREENBERG, NOT THE DETROIT OF
TODAY. BUT ARE WE NOW THE CENTER OF CAR MANUFACTURING IN THE UNITED
STATES? WE COULD MAKE A PRETTY GOOD TASTE FOR THAT.
STACEY. THE INTERESTING THING, I THINK, YOU KNOW, WHEN YOU LOOK
AT THOSE LISTS OVER THE PAST 20 YEARS, A LOT OF
THE PRODUCTION AND MANUFACTURING IN AUTOMOBILES
HAS MOVED FROM DETROIT AND IT'S MOVED SOUTH. SO TO BE ABLE TO RETAIN THESE
AND NOT LOSE THIS PLANT TO SOMEWHERE LIKE KENTUCKY, ALABAMA, OR TENNESSEE HE IS
THAT'S EXPANDING, IT'S A BIG DEAL. PLUS ALL THE COLLATERAL
BUSINESSES AROUND THE AREAS, RESTAURANTS AND SHOPS, IT'S HUGE FOR THE ECONOMY GOING FORWARD.
TWO WEEKS AGO JAY NIXON WAS CELEBRATING HIS REINAUGURATION FOR A SECOND TERM AS MISSOURI
GOVERNOR. THIS WEEK, HE WAS DELIVERING HIS STATE OF THE STATE ADDRESS IN
WHICH HE CALLED FOR CAMPAIGN FINANCE REFORM, MORE MONEY FOR HIGHER EDUCATION, AND EXPANSION
OF THE NUMBER OF DAYS IN THE SCHOOL YEAR AND MADE ANOTHER PUSH FOR LAWMAKERS TO EXPAND
MEDICAID COVERAGE FOR 300,000 WORKING MISSOURIANS. REPUBLICAN GOVERNORS IN
PLACES LIKE ARIZONA, NORTH DAKOTA, NEW MEXICO AND NEVADA ARE USING FEDERAL FUNDS TO
STRENGTHEN THEIR MEDICAID SYSTEMS, NOT BECAUSE IT'S THE EASY THING FOR THEM TO DO
POLITICALLY, BUT BECAUSE IT'S THE RIGHT THING TO DO. HERE IN MISSOURI, WE MUST MAKE
THE SMART BUSINESS DECISION, THE RIGHT HUMAN DECISION AND BRING THE TAX DOLLARS WE SEND TO
WASHINGTON BACK TO WORK HERE IN MISSOURI. [ APPLAUSE ].
HARDLY ANYBODY STANDING UP THERE, THOUGH, JEFF FOX. I MEAN, THAT IS SO IMPORTANT,
THOUGH, TO THE GOVERNOR. IT'S GOING TO HELP 300,000 MISSOURIANS, BUT HE'S NOT
GETTING HUGE AMOUNTS OF SUPPORT FROM A HELP CAN CONTROLLED LEGISLATURE.
THE REPUBLICANS HAVE VETO-PROOF MAJORITIES IN BOTH HOUSES OF THE GENERAL ASSEMBLY,
AND THE LEADERSHIP HAS SAID WE'RE NOT GOING TO DO THIS. THE ARGUMENT THAT NIXON IS GOING
TO MAKE IS THAT UNDER OBAMACARE, HOSPITALS ARE GOING TO TAKE A HIT.
THE FUNDING THAT OFFSETS ALL THE INDIGENT CARE THAT THEY DO IS GOING TO START DRYING UP,
BECAUSE THE THEORY HAS BEEN THAT STATES WOULD EXPAND MEDICAID.
THAT'S THE LITTLE CURVEBALL THE
SUPREME COURT THREW LAST JUNE. THEY UPHELD OBAMACARE BUT TOOK AWAY THE FEDERAL GOVERNMENT'S
ABILITY TO COMPEL STATES TO EXPAND MEDICAID. IF THEY DON'T DO, THAT HOSPITALS
ARE GOING TO LOSS BOTH WAYS -- LOSE BOTH WAYS. THE ARGUMENT THEY'RE GOING TO
MAKE IS THAT THESE LEGISLATORS ARE GOING TO GO HOME AND HEAR FROM THEIR LOCAL HOSPITALS.
AND YOU THINK ABOUT RURAL AREAS IN PARTICULAR. THAT'S A MAJOR ECONOMIC DRIVER.
THOSE PEOPLE ARE WORRIED, AND THEN MAYBE THEY WILL GET THROUGH.
YOU'VE SPOKEN TO LEGISLATORS IN JACKSON COUNTY, AND THEY'RE STILL NOT INTO THIS.
RIGHT, RIGHT. THEY'RE NOT SEEING IT HAPPEN. THEY MAY WANT TO SIMPLY ADDRESS
THE ISSUE OF RURAL HOSPITALS DIRECTLY. WHAT ALSO DID WE LEARN FROM
THE GOVERNOR'S SPEECH THIS WEEK? CERTAINLY WE HAD
A -- HE CANNOT RUN AGAIN, SO AS LIKE PRESIDENT
OBAMA AT THE NATIONAL LEVEL ARE WE WERE TOLD THAT HE WAS NOW FREED FROM THE FEELING THAT HE
HAD TO RUN FOR REELECTION AGAIN, WE COULD SEE THE TRUE OBAMA. WERE WE SEEING THE TRUE JAY
NIXON? HE DID SEEM TO BE A LITTLE LESS FETTERED BY HIS CONCERNS
ABOUT THE CONSERVATIVE NATION OF THE ELECTORATE, BUT HE HAS A VERY CONSERVATIVE LEGISLATURE,
NICK, TO CONFRONT ON A WIDE RANGE OF ISSUES, SO THE AGENDA WAS FAIRLY MODEST OTHER THAN THE
MEDICATION EXPANSION. KNOW, -- I KNOW EXPWREF -- JEFF IS RIGHT, BUT YOU HEAR A FEW
WHISPERS THAT THERE MAY BE A WAY TO FIN HE IS
""IFFINESSE IT, TIE IT TO TORT REFORM, SO IT ISN'T
DEAD COMPLETELY. SAM. WE CAN'T EMPHASIZE ENOUGH
THAT NIXON HAS GOTTEN A LITTLE BIT OF POLITICAL COVER BY GETTING REPUBLICANS AROUND THE
COUNTRY STEP UP AND SAY YES TO MEDICAID EXPANSION. I THINK THAT THAT MAY BE SOMETHO
TIP IT TOWARDS EXPANSION. AND FINALLY, SHE IS BEING LABELED THIS WEEK KANSAS CITY'S
FIRST LADY, CIVIC LEADER AND PHILANTHROPIST ADELE HALL HAS DIED.
SHE REPORTEDLY COLLAPSED UNEXPECTEDLY WHILE IN HAWAII WITH HER HUSBAND, HALLMARK CARDS
CHAIRMAN DONALD HALL. SHE WAS 81. FLICKING THROUGH THE CHANNELS
THIS WEEK, I WAS DRAWN TO AN NBC ACTION NEWS CLIP THAT THE STATION FOUND FROM ITS ARCHIVES
ALL THE WAY BACK IN 1996 WHEN ADELE HALL SPOKE WITHOUT ANY GLOSS ABOUT HERSELF AS SHE WAS
PARTICIPATING IN THE OLYMPIC GAMES TORCH RUN. REALLY I DO WHAT I DO IN THE
COMMUNITY BECAUSE I LOVE DOING IT AND I ENJOY THE CONTACT THAT I HAVE WITH PEOPLE AND WITH
ORGANIZATIONS. IT SEEMS A LITTLE STRANGE TO BE HONORED FOR JUST DOING WHAT I
LIKE TO DO. I THINK IF YOU VOTED ON THE FINEST WOMAN IN KANSAS CITY FOR
HELPING THE COMMUNITY AND SERVING THE COMMUNITY, I THINK SHE'D GET A UNANIMOUS VOTE.
I'M AMAZED AT EVERYTHING SHE'S DONE AND HOW QUIETLY. IT THE WASN'T LOOK AT ME, WHAT I
DID TODAY. ADELE HALL WILL BE LAID TO REST THIS WEEKEND.
AND THAT IS OUR WEEK IN REVIEW. OUR THANKS TO OUR
NEWS REVIEWERS FROM KANSAS KCTV FIVE, STACEY C,
JEFF FOX, DAVE HELLING, SAM ZEFF. I'M NICK HAINES.