Here's how her story began.

"Provena Covenant Medical Center will lose its property tax exemption once again.

"The 4th District Appellate Court on Wednesday afternoon sided with the Illinois Department of Revenue and local taxing authorities and ruled against the hospital, overturning a circuit court ruling from last summer that restored Covenant's exemption."

Because of the courage, conviction and foresight of then County Assessor Stan Jenkins, the world (at least for very profitable, price gouging hospitals that hide behind their tax-exempt status) is a very different place today.

Some things of note.

One.

We'll have to wait to see whether the hospital and the Illinois Hospital Association appeal to the Illinois Supreme Court.

Two.

Stan Jenkins also removed the tax-exempt status of The Carle Foundation for the same reason.

Based on the Circuit Court decision, Carle has been in court demanding that the tax money they have paid into an escrow account be immediately returned with interest.

Doubt that will happen now.

Three.

The Appellate Court's decision, although known, is not yet available to the public.

When it is, I'll provide a link.

I'm going to raise a toast to my hero Stan Jenkins, and a second one to the attorney's from the Illinois Attorney General's office who argued the case, and maybe a third to Illinois Attorney General Lisa Madigan for pursuing this.

You know, Modern Healthcare just released its list of the 100 most powerful people in healthcare.

They might want to revise it as Stan Jenkins arguably because of his actions, could and should be number 1.

To read the entire Champaign News-Gazette article, Click Here

I have said repeatedly lately that he would not give Lisa Madigan a win on health care, because, A he considers it his signature issue, and B he hates the Speaker of the Illinois House who happens to be the father of Illinois Attorney General Lisa Madigan.

She negotiated legislation with the hospitals that was designed to provide discounts to the uninsured, of which there are an estimated 2 million in Illinois.

That legislation passed both Houses of the Illinois Legislature unanimously.

In order to take credit for himself, and or to harm his perceived opponents, Blagojevich announced a campaign to "re-write to do right".

He uses his amendatory veto powers to substantially change legislation to make it better or so unacceptable that it fails.

Well in this case, I will say, on two fronts he made it better and on one other important one he made it much worse.

First of all he increased the size of the discount, secondly he increased the number of uninsured's who would qualify-both good in my estimation.

But he took responsibility for enforcement away from the Attorney General and instead gave it to one of his political appointees-not good.

He also through in a whole new thing, inserting a new requirement that hospitals provide 50% discounts on any out-of-pocket costs for ALL insured children who are admitted to hospitals with any diagnosis related to juvenile diabetes.

Given this is Illinois, I have several thoughts.

While he arguably made the bill better, he might have stopped it from passing.

Given the fact that the Illinois Hospital Association has contributed hundreds of thousands of dollars to him, don't rule out that he's doing them a favor.

I would hope that Lisa Madigan would just accept the changes with one big caveat.

The Illinois Hospital Association is already calling for an override of the Governor's veto.

To see details Click Here.

Here's the caveat.

By introducing a whole new subject regarding children with juvenile diabetes it does open the amendatory veto to a court challenge regarding whether the Governor can do a major rewriting of the legislation sent to him.

To prove that they-the hospitals, are not involved in a plot to kill this legislation, they should sign an agreement with the Illinois Attorney General to voluntarily and immediately start providing the discounts they agreed to in the original legislation that they negotiated with the Attorney General.

If the Governor's rewrite stands up, great, if not, the hospitals will have shown that their original word was good.

This is the path that was successfully followed in Minnesota.

A reminder.

Barack Obama did nothing while 2 million uninsured people in his state are caught in a game of political one-upmanship.

"David Plouffe, the usually soft-spoken manager of Barack Obama's presidential campaign, lashed out at Romney's business background on Monday, the Detroit News reports.

"Plouffe: 'This is someone who was a job-killing machine in business ... . He's someone who has been proficient at using tax havens in places like the Cayman Islands that Americans have become increasingly tired of."

Their polling must tell them that working people are bothered by businesses that use "tax havens in places like the Cayman Islands".

It's not the first time they've raised the issue.

On January 5th of this year, in a Democratic debate, here's what Barack Obama had to say according to a transcript.

SEN. OBAMA: "There is no doubt that the economy has been out of balance. It's been out of balance throughout George Bush's tenure. And some of the trends from globalization preceded George Bush.

"That's why I have proposed specific tax relief now, immediately, so that we would offset some of the payroll tax, that we would immediately put some additional dollars in the pockets of American families, working families typically making $75,000 a year or less, to not only stimulate the economy, but also to balance out a tax code. And I would pay for it very specifically by closing tax loopholes and tax havens. You've got a building in the Cayman Islands that supposedly houses 12,000 corporations. That's either the biggest building or the biggest tax scam on record". (Emphasis added.)

Wait until he finds out how many not-for-profit hospitals are located in that building.

This reminds me of his attack on the compensation paid to the CEO of Wal-Mart.

The amount he found issue with, the fact that the CEO of the business where his wife sat on the Board of Directors, TreeHouse Foods received a lot more that year in total compensation than the CEO of Wal-Mart did didn't bother him.

Selective outrage-based on polling, you've got to love it.

It bears repeating in light of the Democrats singling out these Cayman Islands tax havens.

On the website of the Catholic Health Association, you'll read that "On September 12th, CHA submitted comments to the Internal Revenue Service regarding its proposed changes to the Form 990, which tax-exempt hospitals are required to submit annually. The comments, which include detailed suggestions for improving the proposed Schedule H-Hospitals, reflect extensive feedback from the ministry."

On "COMMENTS ON SCHEDULE F 22. Captive Insurance Companies" Sister Carol Keehan wrote that "Hospitals that have captive or subsidiary insurance companies that are incorporated in a foreign country should not be required to prepare Schedule F merely because of this foreign domicile and absent any activities or programs of a charitable nature in a foreign jurisdiction or country."

She went on to write that "we therefore believe that a hospital's subsidiary insurance company should not be reported on Schedule F".

Sister Carol reported on her website, that this "reflects extensive feedback from the ministry".

I said at the time, "That's just another way of saying that they know if you learn how many millions of dollars they have sitting in the Cayman Islands it will make them look bad-and we all know nothing should be allowed to make the Catholic Church look bad".

Individuals have to report foreign bank accounts, so why shouldn't a tax-exempt hospital have to do the same.

I hope that the Democrats will let us know before the election whether certain organizations like not-for-profit Catholic health care systems will be able to keep their Cayman Islands tax havens.

"You've got a building in the Cayman Islands that supposedly houses 12,000 corporations. That's either the biggest building or the biggest tax scam on record". (Emphasis added.)

If he went there, he'd find that home town Advocate Health is there.

He'd find that Ascension Health is there.

He'd find that Catholic Health Initiatives is there.

They are there because it is a tax haven.

In 2007, Advocate Health reported making a profit of $259,938,000, yet they are a not-for-profit.

I would argue that that is a tax scam.

In 2007 Catholic Health Initiatives reported making a profit of $1,020,272,000, yet they are a not-for-profit.

I would argue that is a tax scam.

In 2007 Ascension Health reported making a profit of $1,215,000,000, yet they are a not-for-profit.

I would argue that that is a tax scam.

It would be nice to know before the election whether Barack Obama agrees.

Robert Laskowski MD is the President and CEO of not-for-profit Christiana Care Health Services.

According to their 990 Federal Tax Forms, here's what he has received in total compensation.

2004, $753,845.

2005, $831,829.

2006, $1,237,366.

I agree with the belief that increases like these anger working Americans.

Unfortunately while singling out excessive CEO compensation, Democrats have yet to name one not-for-profit healthcare executive.

Maybe VP candidate Joe Biden could start by singling out Robert Laskowski, since he lives in his home state of Delaware.

And maybe after looking at the profits being made by this not-for-profit Delaware Hospital, Senator Biden may decide that their tax-exempt status is a scam.

According to their 990 Federal Tax Forms, in 2004 this system reported a profit of $33,513,806.

In 2005, the system more than doubled its profits to $71,846,229.

Profits in 2006 came in at $96,692,111.

Not-for-profit Memorial Hospital of South Bend, Indiana.

According to their last available annual report, for 2006, this not-for-profit hospital reported making a profit of $40,585,000 on only $406.2 million in total net revenue.

According to their 990 Federal Tax Forms, here's what Philip has received in total compensation.

2004, $984,183.

2005, $1,156,556.

2006, $1,555,360.

Wonder how much he would demand if he worked at a big hospital.

He receives compensation not only from the hospital, but lots of affiliates as well.

According to their 990 Federal Tax Forms, here's what he has received in total compensation over the past few years.

2004, $388,669 from the hospital, plus $259,112 combined from the various affiliates. Combined total for the year, $647,781.

2005, $381,813 from the hospital, plus $318,178 combined from the affiliates. Combined total for the year, $699,991.

2006, $1,024,832 from the hospital, plus $683,224 combined from the various affiliates. Combined total for the year, $1,708,056.

What's an increase of a million in total compensation among friends anyway.

I didn’t see any not-for-profit hospital CEO’s scheduled to speak before the Democratic Convention testifying how the economy is squeezing their family budget.

Hobson had been Executive Vice President and COO of not-for-profit Phoebe Putney Hospital.

If you go to the website of Memorial Health Care you will learn that their Values, include Integrity.

Given the background of this system, and the history of Phoebe Putney, I wonder if Integrity is any more than just a word to this system.

Let's start with this fact.

Memorial Health Care System, is more than a system, it is part of not-for-profit Catholic Health Initiatives, a Catholic system that in furthering the healing ministry of Jesus Christ in 2007, was able to make a profit of $1,020,272,000 (that's $1.02 BILLION) and reported having accumulated $5,573,718,000 (that's $5.57 BILLION) in cash and investments.

As for the integrity of the executives at not-for-profit Phoebe Putney, let's revisit something I wrote earlier this year.

Phoebe Putney has been the target of investigations by the Atlanta Constitution newspaper, ABC Primetime Thursday and the U.S. Senate Finance Committee.

Not-for-profit Phoebe Putney in Albany Georgia, which according to ABC News sits in one of the poorest areas of America.

It seems that the President and CEO along with other top executives of Phoebe Putney used the hospital as a piggybank to pay for their high rolling lifestyle.

You can type Phoebe Putney into my search engine, but to get a flavor of what I'm talking about, here's just part of that Atlanta Constitution investigation from a few years ago.

"Private jets. Elite hotel suites in tourist locales. Generous bar tabs. Cuban cigars.

"These were among the perks enjoyed by board members and executives of Phoebe Putney Health System and their business associates, according to travel documents and receipts obtained by The Atlanta Journal-Constitution.

"The perks came courtesy of a private malpractice insurance company that was set up in the Cayman Islands by Phoebe Putney, an Albany-based nonprofit organization, to save the hospital system money on malpractice insurance. But the insurer also financed expensive trips to London and the Bahamas.

"In its effort to establish the insurer, Phoebe Putney also cultivated a business relationship with a veteran state legislator, Sen. George Hooks (D-Americus). The hospital system paid him as an insurance consultant and took him along on a trip to London, where rooms and expenses at the Ritz alone cost more than $30,000.

"Phoebe Putney's chief financial officer said the company had done nothing wrong, and he defended the spending as appropriate."

Yeah given his background, I believe James Hobson will fit right in at Catholic Health Initiatives, and have no qualms about raising the chargemaster in the name of Jesus.

Operating Income for the year came in at $184 million, which was $36 million less than the year before.

Based on their strong investment income of $403 million in FY2007, that year not-for-profit $$$$ reported making a profit of $612 million.

In FY2008, investments tanked big time, (they lost $128 million).

Bottom line, after reporting that profit of $612 million in FY2007, profits for FY2008 came in at only $5 million.

I'll bet the compensation for the CFO didn't tank in a similar way.

Here's some highlights from that story.

"The hospital told state regulators it spent $10 million on charity care for the poor in fiscal 2007 -- 1.3 percent of its total hospital expenses, according to an analysis performed for The Washington Post by the bipartisan, nonprofit Center for Tax and Budget Accountability. That is below the 2.1 percent average for nonprofit hospitals in Cook County.

"As a nonprofit, the University of Chicago Medical Center receives annual tax breaks worth nearly five times as much as it spends on charity care, the analysis found.

"Quentin Young, the South Side physician, described the medical center's level of charity spending as "ludicrous." Young, known in Chicago for having been the Rev. Martin Luther King's personal physician, is chairman of the Health and Medicine Policy Research Group, a Chicago-based nonprofit that advocates health-care reform. Young considered himself an ally of Barack Obama while he was a state legislator.

"That's shameful,' Young said of the percentages. 'They are arguably, if not defrauding, then at least taking advantage of a public subsidy. We would like to see them give more than the minimum. The need is there."

The program that Michelle Obama headed was designed to get poor uninsured blacks out of the emergency room at the hospital.

Why?

The Post reported that "The visits were costly to the hospital, and many of the patients, coming from the surrounding South Side neighborhood, were poor and uninsured".

Remember folks, this is Chicago we're talking about.

The Post reported on some of the political connections.

"The medical center's chairwoman, Valerie Jarett, is a close friend and top adviser who travels frequently with Barack Obama. One of Barack's best friends, Eric Whitaker, is executive vice president at the center and is now in charge of the Urban Health Initiative. Hospital board member Kelly R. Welsh is executive vice president at Northern Trust, which extended the couple a $1.3 million home mortgage shortly after Barack Obama was elected to the U.S. Senate. Dan Shomon, Barack Obama's former campaign manager, is a university lobbyist. Jarrett, Whitaker, Welsh and Shomon all declined to be interviewed or did not respond to requests."

That's the mansion Obama bought with the help of convicted felon Tony Rezko.

Here's a line form that story that raises questions.

"Backed by a federal grant, Michelle Obama in 2005 launched the South Side Health Collaborative..."

Was Barack instrumental in getting that grant?

Was the grant instrumental in getting her raise?

Dr. Eric Whitaker. The embarrassment who served as Director of the Illinois Department of Public Health.

Obama recommended him, Rezko made sure he got the job.

Regular readers know that Illinois Governor Rod Blagojevich is the target of a federal investigation.

Tony Rezko, his close friend, advisor and fundraiser currently sits in jail after having recently been convicted on a number of issues.

Tony Rezko is the man who helped Barack and Michelle Obama buy their $1.6 million mansion.

Governor Blagojevich has tried to make health care his signature issue, but other than a series of high profile press events has done very little.

At the Governor's side during his first term was Dr. Eric Whitaker, who as Director of the Illinois Department of Public Health, helped create a circus atmosphere.

In October 2004, Blagojevich and Whitaker drew national attention when they arranged to buy 700,000 doses of flu vaccine overseas amid worries over a U.S. shortage of the vaccine.

While the state had a contract to buy the doses, it couldn't import them because the U.S. Food and Drug Administration never approved the European vaccine.

This stunt may wind up costing Illinois taxpayers millions of dollars, but is indicative of style over substance.

So where did Whitaker come from.

Over the weekend the Chicago Sun-Times wrote the following.

"Obama has said he recommended Whitaker for the state job, giving his name to Tony Rezko, who helped Gov. Blagojevich assemble his Cabinet. Rezko, a former fund-raiser for Obama and Blagojevich, was convicted in June on federal corruption charges tied to state deals."

Blagojevich's actual record on health care is laughable, thanks in no part to Dr. Whitaker, who came from Senator Obama, through Tony Rezko.

That's reform, that's change you can believe in.

Dr. Whitaker has since left the State of Illinois.

His new job?

He replaced Michelle Obama as Vice President for Community Affairs at the not-for-profit University of Chicago Hospitals.

For more on that, please read on.

The program is called the Urban Health Initiatives, a name Obama campaign strategist Davy Axelrod argued should be changed because the word "urban" is a code word for "black".

The Chicago Sun-Times story went on to report that "the Urban Health Initiative has critics, including South Side residents and medical professionals".

"I've heard complaints from a handful of constituents, but I've also had calls from people in the health care profession complaining,' said Ald. Toni Preckwinkle, whose 4th Ward is just north of the hospital. 'The medical professionals who have come to me are accusing the university of dumping patients on its neighboring institutions."

This is a hospital that last year offered to send its Medicaid patients to the County Hospital to help them financially.

In real estate this was once known as redlining.

This is economic racism, covered up by polling, focus groups and friendly columnists like Sun-Times columnist Carol Marin who often writes about a needed debate on health care, but uses her power to defend Obama at every turn.

Maybe someone will ask the Civil Rights Division of the Justice Department to take a look at this.

A reminder.

For year end 6/30/07, this not-for-profit hospital reported making a profit of $143,158,000.

For the first 9 months of their FY2008, they report making a profit of $153,707,000.

Change you can believe in.

To read the entire Sun-Times story, Click Here

They'll even park your car for you, ("It is easiest to use our valet parking service") and walk you right past that waiting room where there might be people who make you uncomfortable.

Here's what they say.

"The Program for Executive Health at the University of Chicago Hospitals is designed for busy people who do not have the time to navigate today's healthcare systems. Our high-energy staff runs the program the way top-level executives run successful businesses; effectively, efficiently, and geared toward customer satisfaction.

"We manage all the details, using our extensive experience and organizational know-how to assure your experiences with our hospitals are seamless.

"An Executive Health liaison stays with you throughout your day, escorting you from appointment to appointment, assuring that you are seen quickly, move through the system smoothly, and receive executive-level service."

I wonder if Davy Axelrod would say that the term "executive-level service" is a code for wealthy and White.

As for payment?

On their Q and A you'll read, "Q. What methods of payment are acceptable?

"A. We accept personal checks or credit cards (American Express, Visa, Mastercard)."

I have seen the future of health care under President Obama, and can't help but see the hypocrisy of his rhetoric versus his record.

To get the full details of this program, Click Here

How do I know?

In August of 2007, the Vindicator Newspaper in Youngstown Ohio ran a story that began, "Forum Health has stemmed the financial bleeding that had the company on the fast track to bankruptcy two years ago, but its board of trustees remains intent on selling the health system as a whole or in pieces. "

That prompted me at the time to write the following.

Let's see, 2 years ago would have been 2005.

And what was the President and CEO N. Kristopher Hoce of Forum Health doing in 2005 to stem the bleeding?

While he was asking for sacrifices from others, his total compensation for 2005 came to $672,091.

That's more than a $100,000 increase from the $568,307 in total compensation that he received the year before.

He left (thank goodness) in 2006.

We will continue to monitor this to see how much money he walked out the door with that year.

Well know we know.

So back to my question how do you turn around a financially failing not-for-profit health care system.

One. Terminate the President and CEO.

They what they did on 1/31/06, one month into their FY2006.

Two. Give him an obscene amount of money for that one month, in this case $1,308,956.

Three. Pay a new President and CEO, Keith Gheezi MD an obscene amount of money also for the same year, in this case $1,012,000.

Four. When that fails, while you (in their words) "continue to find a permanent management solution" go out and get a hired gun, aka "turnaround specialist".

To see who they got, please read on.

Here's what Forum Health had to say about him.

"He has served as a turnaround CEO or COO for 25 hospitals and/or health systems during the past 18 years. " (Emphasis added.)

Think about that for a minute, they are bragging that they have obtained the services of a "turnaround" specialist, who on the average spends less than 9 months at a hospital.

And how does Mr. Johnson describe those 25 hospitals?

He calls them "customers".

Be afraid people of Ohio, be very afraid.

That's it until Monday, have some personal business to take care of.

That's part of what you read on page 3 of a 990 Federal Tax Form.

It's the page where not-for-profit organizations are supposed to show the things they do to deserve their tax exempt status.

Page 3 tells us why.

"How the public perceives an organization in such cases may be determined by the information presented on its return."

On its 2004 990 Federal Tax Form, the not-for-profit Norton Healthcare Foundation wrote, "The Norton Healthcare Foundation helps provide financial support to patients who cannot afford medical care".

Although they didn't list the number of clients served, they reported that "program services expenses" amounted to $20,300.

On their 2005 990 they wrote that "The Norton Healthcare Foundation helps provide financial support to patients who cannot afford medical care. In 2005 14 patients received financial assistance." (Emphasis added.)

The "program services expenses" amounted to $21,000.

On their recently posted 2006 990, they wrote that "The Norton Healthcare Foundation helps provide financial support to patients who cannot afford medical care. In 2006 14 patients received financial assistance." (Emphasis added.)

The "program services expenses" amounted to $22,000.

I wonder if they help the same 14 people every year.

According to their audited financial statements, here's how much profit they have made in each calendar year.

2004, $18,005,116.

2005, $35,034,828.

2006, $60,148,881.

2007, $97,475,737.

According to their 990 Federal Tax Forms, here's what they report as the total compensation of President Williams.

2002, $630,775.

2003, $706,079.

2004, $870,676.

2005, $1,637,741.

And just to show that wasn't some onetime bonus payout, according to their recently posted 990 for 2006, he received $1,626,574 in total compensation.

That is not the case at not-for-profit Yale New-Haven Health Services in Connecticut.

According to their 990 Federal Tax Forms, in 2004, then President and CEO Joseph Zaccagnino, received $1,182,756 in total compensation.

In 2005, that amount climbed to $1,401,576.

In 2004, then Executive VP Marna Borgstrom received $1,067,350 in total compensation.

In 2005, that amount dipped to $819,715.

Late in 2005 (actually the beginning of their FY2006), she was promoted to President and CEO.

That year she received $1,462,817 in total compensation, which is an increase over what the position received the year before.

It would appear that the President and CEO of not-for-profit Stormont Regional Vail Health Center Maynard Oliverius is cashing in like other not-for-profit CEO's with comparatively big increases in his total compensation.

According to their 990 Federal Tax Forms, you can see what I mean.

2004, $495,700.

2005, $597,809.

2006, $760,987.

Pretty darn good for a system that according to the American Hospital Directory (AHD) only reported $413,261,253 in total patient revenue that year.

By the way in 2007 AHD reports that they marked up their actual costs by 377%.