Archive for Thursday, March 1, 2007

Senator suggests selling KU Hospital to fund $660M in university repairs

March 1, 2007

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— A state legislator wants to sell Kansas University Hospital and use the proceeds to pay for repairs at regents universities and boost the state pension system.

"We have an opportunity to solve two problems that are plaguing our state," Sen. Chris Steineger, D-Kansas City, said Wednesday.

Steineger said independent analyses show that KU Hospital has a market value of at least $800 million.

Lawmakers face an estimated $660 million in deferred maintenance and repairs at the six regents universities. Legislative leaders say they believe a $100 million per year increase for maintenance would eventually resolve the backlog of projects.

The Kansas Public Employees Retirement System has a $5.1 billion gap between the value of its assets and its future pension obligations.

The sale of the hospital would complete a privatization process started in 1998 when the Legislature split the hospital from KU Medical Center, Steineger said.

He said he hoped legislators would "think outside the box" and consider his measure. He said most hospitals in major cities are owned by private entities or nonprofit organizations. But he conceded the idea would likely run into opposition.

Under his plan, the state would retain KUMC.

"Once you get past the emotional attachment (to KU Hospital), it's just a business decision," Steineger said.

Rep. Paul Davis, D-Lawrence, opposes the plan.

"KU Hospital is an important resource to the state and critically involved with the medical center," Davis said.

Comments

fletch 8 years, 3 months ago

This logic ranks right up there with "if you chop all the trees down, you don't have to worry about forest fires."

Christine Pennewell Davis 8 years, 3 months ago

What the heck? To me this just seems like digging a bigger hole, true I am no brainiac, but this article just reminds me of someone taking a loan out to pay that loan then getting another to pay the second and so on and so on.

OldEnuf2BYurDad 8 years, 3 months ago

KPERS needs to bail ITSELF out. Selling our university's facilities so we can fix Topeka's mis-management problems?

"Let's cash in the kids' college funds so we can pay the mortgage."

When you have to start taking family heirlooms to the pawn shop to pay your bills, you know you've made some major mistakes along the way.

Bruce Bertsch 8 years, 3 months ago

Consumer 1 -- Perhaps you are getting shoddy buildings that don't last as long because we always take the lowest bid. Cheapest is not always the best.

Godot 8 years, 3 months ago

Stowers is going to get that hospital one way or another. Why not sell it to him for a nice, big price, rather than let him just take it over?

ed 8 years, 3 months ago

KU Hospital and KUMC must completely sever ties.

It is no surprise that KUMC wants to be a top academic institution in the world.

It is no surprise that KU Hospital wants to be one of the biggest and best hospitals in the region.

Unfortunately, this creates a conflict of interest. The smartest thing KUH and KUMC can do is sever their ties, break apart into two completely separate organizations.

KUMC should be allowed to make a deal with both St. Lukes AND KU Hospital to help KUMC become one of the best medical academic institutions in the world.

KUH should be operated as a separate organization, not tied to KUMC in any way except by contracts negotiated between the two schools.

This will be a mountain to surpass, but it is the best long term alternative for both organizations.

MyName 8 years, 3 months ago

If this really is in the "best interests" of both institutions, then why is that guy framing the proposal in terms of budget difficulties? It's just stupid the way this is being proposed. It's like, instead of doing the smart thing and taking care of state resources, we do the dumb thing and just sell them off.

Luther 8 years, 3 months ago

Obviously a level of missmagement is present. If the universities knew how to balance their budget there would be no sugestion of "pawning" the hospital. I'm not a genius but I do know that KU Medical Center has received one of the highest rating in the nation which shows that on the hospital side someone knows what their doing. And someone on the university side does'nt. How can KU Med Center be rated so high and the University be in financial trouble. Does that make since to you?

Luther 8 years, 3 months ago

Obviously a level of missmagement is present. If the universities knew how to balance their budget there would be no sugestion of "pawning" the hospital. I'm not a genius but I do know that KU Hospital has received one of the highest rating in the nation which shows that on the hospital side someone knows what their doing. And someone on the university side does'nt. How can KU Hospital be rated so high and the University be in financial trouble. Does that make since to you?

ASBESTOS 8 years, 3 months ago

Let's see here:

1.) The KPERS investment people we hire are totally ineffective being that they cannot get the assets to produce the required benefit payout in A RISING MARKET WITH RECORD GAINS!!!! (WHAT ARE WE GONNA DO IN A ECONOMIC DOWTURN?)

2.) The Universities had been given money earlier on in the 1990's and instead of repairing buildings they built new ones, AND none of the money and research that the PEOPLE OF THE STATE of KANSAS are funding these universities is paying off as it is continuing to cost more and more. (WHAT ARE WE GONNA DO IN A ECONOMIC DOWTURN?)

  1. Sell an entity that brings prestige, service AND revenue to the State of Kansas to pay off all thos other shortcomings?

Stineger, isn't this the guw that is associated with the illegal transfer of the SFAAP and is affiliated with the SR Corp.?

THis is more than Fletch states: "This logic ranks right up there with "if you chop all the trees down, you don't have to worry about forest fires.""

NO they are not worried about forest fires, this is about "leaves falling". Basic maintenance, and they cannot do it with this equipment, tools, and budget.

I think I found out "What's the matter with Kansas?"

ASBESTOS 8 years, 3 months ago

Wonder whom Chris Steinerger Knows who wants to buy a hospital. I bet his wife is the Broker on the deal. Looks like there is a yahoo in the woodpile here, and I smell corruption and the hatching of the "inside deal".

I would say to start an investigation on Senator Chris!

ed 8 years, 3 months ago

What is the argument for the state to continue ownership of KU Hospital?

It is communistic for the state to own a for-profit organization for no reason.

According to dictionary.com, communism is: "a theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state. "

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