The Llano Ledger


Newsletter Text V30

This Website Is Full. Starting With The December 25, 2000 Newsletter, All Future Editions Will Be Posted In The Llano Ledger 2, Found By Clicking http://maxpages.com/llanoledger2.

*************March 6, 2000**************

In the Feb. 7, 2000 Newsletter edition, several disturbing excerpts from Llano Memorial Healthcare System (LMHS) released documents were published. Readers will recall those documents were Parrish, Moody, & Fikes, p.c. accounting reports offered by LMHS in support and verification of the HCF Feasibility Study commissioned by the Hospital.

The nature of the excerpts raised serious questions, however, regarding whether LMHS officials had indeed provided all necessary information to the accountants. To make a long story short, are the accounting reports reliable, or nothing more than a sham? After an additional month of inquiry, the answer remains unclear.

Access to all LMHS-accountants records regarding the proposed Marble Falls Community Hospital was sought, -- including contracts, fax, snail, and e-mail correspondence, as well as telephone logs. Administrator/CEO Ernie Parisi and I exchanged several e-mails, and a meeting was finally scheduled for Tues., Feb. 29.

At that time, Executive Secretary Karen Kinard produced one additional four-page document dated August 30, 1999 from the accountants confirming their "understanding of the services" to be provided for the Hospital. Both Kinard and Parisi strongly asserted NO other documents exist. In addition, telephone logs are reportedly not kept by Hospital authorities.

As reported in an earlier edition, LMHS spent $21,460 for the aforementioned accounting reports. -- More, in fact, than they spent on the Feasibility Study itself. Yet, there are NO other records? Interesting, isn't it? More pointedly, it more than stretches credulity. ... A hospital with meager, virtually no records, regarding a substantial expenditure? No sale, Ernie. It doesn't wash.

Clearly not an attorney nor accountant or hospital administrator, this publication, however, has given LMHS management EVERY benefit of the doubt over the last several months, -- despite egregious stonewalling and foot-dragging nearly every step of the way. The guiding principle behind this probe has always been to do no damage to LMHS and its best interests, while carefully determining if there has in fact been any impropriety. This has been an extremely difficult tightrope to walk in view of the wall deliberately erected by the Administrator, his staff, and a handsomely-paid hired legal gun. ... What are you so afraid of, Ernie? More pointedly, what are you hiding?

Mr. Parisi claims, that although disturbing, the language in the accounting reports is nothing more than standard operating procedure for such firms. ... Over the years, I've had ample opportunity to read numerous accounting reports. Never have I seen anything quite like the aforementioned.

What makes this all the more troubling is the narrow margin LMHS operates on. According to the Administrator, the final figure for 1999 is approximately $690,000. Parisi asserted, however, other hospitals operate on even lower margins. He asked if I had in fact seen a recent related article in the Feb. 27 edition of the _Austin American Statesman.

I had not, but managed to pull it up on the Net. Readers should take a careful look at the Rebecca Thatcher piece. It is indeed interesting and can be found by clicking on http://austin360.com/statesman/editions/sunday/news_3.html.

The Administrator repeatedly and steadfastly stood by his earlier explanation of the language in the reports. Reportedly, it is again simply standard operating procedure for a prestigious accounting firm with an excellent reputation. Furthermore, the final reports are not yet available, and GAP (Generally Accepted Accounting Principles are indeed being followed, according to the Administrator.

Parisi's assertion, however, does NOT jive with the Accountants Compilation Report dated June 22, 1999: "Management has elected to omit substantially all of the disclosures required by generally accepted accounting principles and the statement of cash flows. If the omitted disclosures and statement of cash flows were included in the historical financial statements, they might influence the user's conclusions about the Hospital's historical financial position, results of operations, and cash flows. Accordingly, these historical financial statements are not designed for those who are not informed about such matters."

The Administrator's failure to publicly address this glaring inconsistency is devastating. During two recent meetings, Parisi offered no explanation. Why??? Apparently, there is none. Yet, this document has been offered in support and verification of the Feasibility Study.

When the Administrator casually mentioned my misgivings and suspicions, I immediately asked if he had indeed read the Feb. 7 Newsletter edition. He stared blankly momentarily, and disingenuously replied no. .... How the hell would he know what I thought if he hadn't read the material??? I let it pass, but asked him to read the Newsletter and kindly respond in writing.

Furthermore, I implored him to make his case to the readers exactly as he had to me. Once again and as asserted previously, he replied he has a policy of not responding to anything in the media. Interesting, isn't it? A remarkably convenient Catch-22, no? ... Isn't it also the function of a CEO to be the ultimate spokesperson for a "corporate" entity? ... Again, we're talking about a governmental bureaucrat here, aren't we? What do I want, the world or what?

I took the opportunity to remind Mr. Parisi there are indeed serious misgivings and suspicions in the community regarding the proposed facility, and that it was to his advantage to publicly address those concerns. Sadly, he made no commitment to do so, flatly asserting Hospital authorities intend to pursue financing through the sale of bonds. Furthermore, if the effort to secure funding fails, it fails, and they then move on to other things. ... Fascinating, isn't it? A truly blase, detached approach, no? ... Especially, when it's not HIS money to lose.

Readers should understand there is clearly a level of arrogance, or at the very least indifference, on the part of LMHS officials in regard to negative public reaction to expansion plans involving a neighboring county. Apparently, they couldn't care less. More pointedly, they've forgotten they're a quasi-governmental entity indeed answerable to Llano County taxpayers. Should LMHS go bankrupt, top management would quickly get the boot. Apparently, truth and honesty have taken a backseat to expediency.

Until now, I've held off filing a complaint against LMHS in regard to their bogus request for an exception ruling from the Attorney General. I wanted to see the level of cooperation displayed as additional information was requested. The complaint will be filed shortly, and posted on this website.

I still have not decided how to present statistical information from the released accounting reports. One major concern is providing no advantage to LMHS competitors. As time passes, of course, these concerns become less significant. With the operational margin as narrow as it is, however, assumptions made both in the accounting reports as well as the feasibility study are critically important.

One particularly disturbing assumption is that the level of indigent care will remain the same for the next five years. Interesting, isn't it? ... More to come on this and other related issues in the near future. While all may indeed be on the up and up, I'm terribly concerned with the proposed expansion, and whether Hospital officials are in fact being upfront and honest about the endeavor.

With the scarcity of information, few records of substance made available, intense stonewalling including delaying tactics such as the AG ruling request coupled with disingenuous e-mail messages, as well as the refusal of the Administrator to respond publicly to glaring inconsistencies and community concerns, something is NOT quite right here.

Lacking the Gestapo power of a prosecutor or police investigator, however, there is no quick or easy way to determine the truth. Since the proposed hospital will apparently be financed by bonds, isn't it interesting no LMHS official is willing to categorically state in writing taxpayers will NOT be left holding the bag should the facility fail. Are Llano County taxpayers comfortable being held ultimately responsible for the indebtedness of a Burnet County hospital? More pointedly, why haven't the people been allowed to vote on the expansion? Afraid it wouldn't pass, Ernie?

With the incorporation of LMHS, our illustrious Commissioners ensured Hospital executives would no longer be accountable to elected officials other than the District Attorney. Most convenient, isn't it? With the current incumbent, it clearly means Hospital authorities can do as they please with virtual impunity. Needless to say, the expansion issue will continue to be carefully examined.
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The selfless effort of numerous volunteers at the Lakeshore Library is quite something to behold. Friends of the Lakeshore Library have been working hard raising funds for a new, much larger facility. One of their committees is putting a remarkable amount of effort into compiling a cookbook of area recipes.

The price is $8.95 and all proceeds go to the building fund. They're still looking for a few additional recipes in the pickled and canned categories, as well as for your favorite appetizers and beverages. To reserve a copy of the book or submit a recipe, give the library a call at 915-379-1174. ... Makes an inexpensive great gift for a loved one, doesn't it?

Readers should understand no one asked for this plug or even knew it was coming, but the truly selfless labor of so many demands it. Their efforts will also save the taxpayers an enormous amount of money on a most worthy cause, -- the construction of a much larger library providing all with quick and easy access to information.

_The Ledger visitor count stands in excess of 8900. Sadly, there continues to be no financial support, despite snowballing readership. ... After all, why pay for it when you can get it for free? Right? Damned pitiful. With growing public interest, our cowardly area businesses will sooner or later take advantage of the market represented by this expanding readership. While I can certainly understand the fear and subsequent reluctance of businesses to advertise, it is the failure of the readership to financially support this publication that disturbs me most. Indeed, WHERE is YOUR courage and generosity? When will you do your part, instead of selfishly taking what you can get? If this publication is apparently good enough to be read by so many, why isn't it being financially supported?

As repeatedly asserted, the pop-up and banner advertising belongs to Maxpages. _The Ledger receives no income from either, and remains non-profit. As always, this publication needs and appreciates donations from readers. Sadly, no other publication is willing to challenge corrupt and abusive officials. Readers can expect continued aggressive, relentless, officious, tireless pursuit of our most egregious offenders. -- Figuratively speaking, a "take no prisoners" approach, regardless of whose toes are stepped on, feathers ruffled, tail feathers plucked, or beak tweaked. Things CAN change in our community. Be part of it. Help me to help you. Support this publication.

Tim Chorney, Publisher



Tim Chorney, Publisher
P.O. Box 997
Buchanan Dam Tx. 78609

llanoledger@mailcity.com

Page Updated Tue Oct 9, 2001 1:24pm EDT