ANATOMY OF A NON-PROFIT’S TAX FILING, or, WHY THE HECK DOES BERKSHIRE HEALTH SYSTEMS HAVE FINANCIAL HOLDINGS IN THE TAX HAVEN CAYMAN ISLANDS??
By DAN VALENTI
PLANET VALENTI News and Commentary
(FORTRESS OF SOLITUDE, FRIDAY, DEC. 2, 2011) — On the tax filing of Berkshire Health Systems dated Aug. 15, 2011 — Form 990, Return of Organization Exempt from Income Tax with BHS’ employment ID # 04-2442944 — question 4 asks for a description of the organization’s achievement. Darlene Rodowicz, CFO, answers: “Berkshire Health Systems serves as the sole member to affiliates that form an integreated delivery system providing healthcare to the community.”
“Sole member to the affiliates” means that BHS essentially employs its 27 affiliates as part of “an integrated delivery system.” This description provides the definitive answer to the question, Is an employee of one of the affiliates — Berkshire Healthcare Systems, for example — an employee of the parent company? The answer is yes, by BHS’ own definition.
The “integrated delivery system” includes at least 27 companies:
1. Berkshire Health Systems, Inc.
2. Berkshire Medical Center, Inc.
3. Fairview Hospital, Inc.
4. Berkshire Faculty Services, Inc.
5. Berkshire Indemnity Company, SPC, LTD
6. BHS Management Services, Inc.
7. Berkshire Healthcare Systems, Inc.
8. Bourne Management Systems, Inc.
9. Greenfield Management Systems, Inc.
10. New Bedford Management Systems, Inc.
11. Northampton Management Systems, Inc.
12. East Longmeadow Management Systems, Inc.
13. Danvers Management Systems, Inc.
14. Peabody Management Systems, Inc.
15. South Yarmouth Management Systems, Inc.
16. Berkshire Pennsylvania, Inc.
17. Xenia East Management Systems, Inc.
18. Willowood of Great Barrington, Inc.
19. Willowood of North Adams, Inc.
20. Willowood of Williamstown, Inc.
21. Hillcrest Extended Care Services, Inc.
22. Berkshire Retirement Community, Inc.
23. Berkshire Extended Care Services, Inc.
24. Integri Nurse, Inc.
25. Integriscript, Inc.
26. Hospicecare in the Berkshires
27. Pittsfield Management Systems, Inc.
Genuine Market-Oriented Companies or Shell Game?
This is the listing of BHS holdings for the FY ending Sept. 30, 2010.
Integriscript Inc.? Integri Nurse Inc.? You’d think that for an organization as sophisticated as BHS, they would have at least hired the NYC advertising agency to come up with something more catchy, such as “Lenoxology.” Integriscript, incidentally, was formed on Dec. 1, 2009. It lists David Phelps as president, William Jones as treasurer, and Lynn Murphy as clerk.
According to Trovix website, the company provides “Value-added pharmacy solutions.” So be it. The company seems to have generated little income, at least judging by the information on Form 990. The same goes for Integri Nurse. Are these companies legit? We don’t mean in a technical sense but in a capitalistic sense, that is, legitimate businesses set up for the purpose of marketing products of services to fill organic needs generated by the routine working of the marketplace. Another alternative is that they are shell companies.
We learn on p. 16 of the filing that BHS does not provide monetary support for its affiliated companies. Rather, “This organization provides support in the form of providing management services to its supported organizations.” These management services aren’t for free. In short, it appears that BHS, the umbrella parent for the 27 affiliates, takes money from and doesn’t give money to its corporate “children.”
Not Bad Work If You Can Get It
According to Form 990, BHS President David Phelps, takes a “reportable compensation from related organizations” of $529,983. He also receives an “Estimated amount of other compensation from the organization and related organizations” of $38,266. As treasurer, Darlene Rodowicz takes $323,664 and $35,298 from these two sources.
On p. 7 of the filing, where these amounts are listed, there is an entry for “Average hours [of work] per week.” The document lists that Phelps and Rodowicz work 1.00 hours a week for their money. Assuming that they take no vacation and work 52 weeks (or 52 hours a year1), Phelps and Rodowicz give new meaning to the expression “hard-earned.” They must be the hardest working people in Show Biz, now that the late, great James Brown has moved to heaven.
Elsewhere, Phelps appears to work a little harder. On Form 990, Schedule J, pages 23 and 24, Rodowicz’s filing reveals the following compensations for the BHS President:
BHS AFFILIATE — COMPENSATION FOR DAVID PHELPS
* Berkshire Medical Center, $293,922 paid to Phelps
* Fairview Hospital, $39,190
* Berkshire Faculty Services, $97,974
* Berkshire Indemnity Company, $19,595
* Berkshire Healthcare Systems, $29,396
* Bourne Management Systems, Greenfield Management Systems, New Bedford Management Systems, Northampton Management Systems, East Longmeadow Management Systems, Danvers Management Systems, Peabody Management Systems, South Yarmouth Management Systems, Berkshire Pennsylvania Inc., and Xenia East Management Systems — $2,351 apiece
* Willowood of Great Barrington, $4,702
* Willowood of North Adams and Willowood of Williamstown — $3,527 apiece
* Hillcreast Extended Cared Services, $8,230
* Berkshire Retirement Community, $11,757
* Berkshire Extended Care Services, $8,230
* Integri Nurse, $3,527
* Integriscript, $3,527
* Hospice Care in the Berkshires, $11,757
* Pittsfield Management Systems, $5,878
That’s not bad work if you can get it.
All things being equal, there’s nothing wrong or unethical about any of this. America is the land of the free and the home of the warriors of opportunity. We did for capitalism what China is doing for Socialism. We put it on the map as the economic force of difference.
The point is, of course, that BHS has mushroomed from simple, little Pittsfield General Hospital into a vast empire ruled by David Phelps. The empire has a de facto monopoly with respect to healthcare and medical services in Berkshire County. The company has enormous political power and influence simply because of its size and because of Phelps’ political connections. This combination, with a few secret ingredients, added to a carefully adjusted mix, can produce nitroglycerin.
Are Monopolies Ever Good for the Consumer of Any Market, or Does Competition Provide Better Service at Lower Costs?
At the least, to put so much of an entire community’s healthcare options into one basket leaves the residents of the area — who make up our communities — vulnerable on any number of fronts, including medical, financial, political, and ethical, the latter since healthcare decisions are among the most important and often heart-wrenching a person has to make in life.
Also, as a general rule, the more choices and options people have, the lower their costs and the better the service they receive. Competition is good. Monopolies are bad. It’s what THE PLANET calls “the BJ Effect.” When BJ’s wholesale store opened its gas station, it undercut every gas station in Pittsfield. As a consequence, the other stations had to lower their prices. Good for the little guy.
Plus Free Winters in the Cayman Islands, on the House’s Money
Perhaps the most intriguing aspect of the Form 990 tax filing of BHS is found on p. 5, Part V, 4b: “At any time during the calendar year,” the IRS asks, “did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account)? If yes, enter the name of the foreign country.” Rodowicz entered: “Cayman Islands.”
The alarms, bells, and whistles burrow, chime, and piece the air at the mention of the Cayman Islands. The Caymans are a well-know tax haven used by the wealthy, both individuals and corporations.
According to NPR’s FRONTLINE, Cayman is the world’s fifth biggest financial center. The article (pbs.org/wgbh/pages/frontline/shows/tax/schemes/cayman.html) documents the recent trend of American corporations and wealthy individuals to “set up companies or subsidiaries in tax havens like the Caymans.”
In short, with holdings in the Caymans, Berkshire Health Systems has financial accounts in an offshore, international destination outside of U.S. jurisdiction. The questions are why and what are the nature of those holdings? Even though Angelo Stracuzzi is a trustee of BHS, we can be sure that “Angelo didn’t send them” to the Caymans? (On a marginally related note, a better question would be: Why hasn’t BHS saw fit to disinvite Stracuzzi from his position as a trustee/officer of BHS?).
Frontline says the problem with U.S. citizens or corporations having money in the Caymans is two-fold:
(1) Account holders in the Caymans have access to money at a far greater cost than they can get from American banks. They play by a different set of financial rules than the ordinary, unwashed masses. The game gets tilted heavily in their favor, simply because of their power and wealth. Are the financial rules that Mary Jane and Joe Kapanski have to play by just not good enough for BHS?
(2) More problematic is that such accounts “guarantee virtually complete secrecy about financial deals and assets held by Americans, in accordance with Cayman confidentiality laws.” It looks like the Caymans are the new Swiss bank account. This neat little dodge has made the Caymans a draw for criminal money laundering and the money dealings of big-time drug traffickers — not the kind of company with whom most of us would want to be associated.
Tax Havens Typically Exist for One Reason: So Account Holders Can Hide Money from the IRS
The Frontline article mentions how the Caymans have tried to tighten regulation and oversight to prevent such blatant criminal activity, but it has not done much, if anything, to stop the use of Cayman accounts to evade U.S. taxes.
With the amount of revenue generated by all of the companies of BHS, the exact nature of its Cayman holdings becomes important. As a mecca for tax dodgers, there are certainly many scenarios, far fetched and otherwise, that one could concoct. THE PLANET is not in any way, shape, or form alleging, saying, or implying that BHS has engaged in any illicit behavior with respect to its holdings in the Caymans. Let’s be clear about that.
We simply suggest that the admission of holdings in the Cayman Islands JUMPS off the otherwise stodgy and beard-combingly boring 990 tax form. What, the Pittsfield Co-Op isn’t good enough?
The Economist (from Geoffrey Colin Powell) defines a “tax haven” as “the existence of a composite tax structure established deliberately to take advantage of, and exploit, a worldwide demand for opportunities to engage in tax avoidance.”
Form 990 advisers filers who has answered “YES” to holdings in a foreign country to “See the instruction for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.”
There is no evidence in the 990 filing that explains BHS’ financial holdings in the Caymans. We do learn later in the document, on p. 30, that “Berkshire Health Systems’ financial statements are audited by an independent accountant only as part of consolidated financial statements and other financial information for Berkshire Health Systems and subsidiaries.”
We also read that “Financial statements are available to the public at the offices of … the chief financial officer and … the vice president and general counsel at 725 North Strett, Pittsfield, MA 01201.”
We would put out there, simply as an honest question: What are the excat nature of BHS’ holdings in the Caymans? Where is there office there? What work or services are done there? How often do officers of BHS have to visit the Caymans on work-related matters?
Inquiring minds want to know.
———————————————————————
INTO THE WEEKEND WE GO, THEN TO FOXBORO ON SUNDAY, FOLLOWING SHANGRI-LA, THOUGH UTOPIA IS NEVER AN OPTION. HAPPY WEEKEND, O, MY BROTHERS AND SISTERS.
“OPEN THE WINDOW, AUNT MILLIE.”
LOVE TO ALL.
oo7
What I find funny about all of this is that this all started as an unfounded accusation that Berkshire Health Systems was involved in the Mayor’s decision to oppose the proposed methadone clinic downtown. No evidence on that point has ever been presented. No documentation has been brought forward – the company has not filed paperwork for its own clinic.
Now Dan and his gang of conspiracy theorists jump in with IRS 990 forms that are not only legally filed, but also contain absolutely no information to prove BHS is involved in any way with the issue of the methadone clinic. What does the Cayman Islands have to do with any of this? How many other businesses locally do you think have investments there? I would bet many do, because as Dan himself said, it’s perfectly legal to do so.
GE, Dan’s old employer (yes, did any of you know that he was associated with GE and earned a considerable income from the Jack Welch empire for many years?) paid no taxes whatsoever last year. They did it legally. Google opened a headquarters in Ireland to avoid paying US taxes, as did many other US companies (saw it on 60-Minutes). All legal.
Again, what does any of this have to do with whether BHS is involved in the methadone clinic issue? Nothing. It’s smoke and mirrors.
Does David Phelps earn a good living? Yes, he does. So does the local VP of Sabic, so does the local president of Berkshire Life, so do the presidents of Williams College, BCC and MCLA, so do the owners of the Red Lion, and the list goes on. Phelps is the CEO of the largest employer in the county. I would expect he would be well compensated for it, just as those others I mentioned are well compensated for their jobs.
While looking through your Guidestar records, please look and see how much the president of Baystate Medical Center earns – that would be nearly 2 million dollars a year – and look at their Board – gee, the head of Big Y is on it, my, must mean there is a scandal involving healthcare and the grocery industry in the Springfield area.
My goodness, I checked Southwestern Vermont Medical Center in Bennington, a hospital much smaller than BMC, and… their president earned over 600 grand! And several others in admin earned around a half million! They must all be involved in trying to open methadone clinics in Vermont!
Oh, and Dan, before making statements like you did about Stracuzzi and BHS, why don’t you check current facts. He is not a member of the 2011 BHS Board, as clearly shown on their website. The IRS 990 form you draw info from is always going to be well behind “current” information.
STEVEN
When did Stracuzzi get the boot from the BHS board, and why did you guys dump him. Did it have anything to do with certain incidents in Biddeford, Maine, in July 2005? Would appreciate letting us know.
@SC, Now you are saying DV worked for GE…where are you coming up with this stuff?
Mr. Valenti was a part owner of Media Services Group, which was contracted exclusively with GE Plastics for many years. Ask Dan yourself. Again, I have no issue with it, it was his business and who he did business with was his own affair – but it shows how easily someone can be drawn into a conspiratorial mindset.
My point, Hilly Billy, is it’s so simple to reach ridiculous conclusions based on little or no evidence. Dan earned income as a result of a direct association with Generous Electric. GE helped to ruin our local environment through PCB contamination. GE paid no US taxes last year, and likely hasn’t paid much historically. GE sends a lot of our US jobs overseas. Does that mean Dan supports any or all of that? Not one bit, and I’m sure he doesn’t, but I could make the argument that he took their money, so he and GE are as thick as thieves. See what I mean?
BHS shelters some assets in the Cayman Islands, which is legal, and many companies do it. Many other companies do it in Switzerland and other shelter states. How much money do you think GE has sheltered? I guess that means Dan is complicit with that, because he used to earn money from them, right? I mean, GE didn’t just start sheltering its assets in 2010, right? They’ve been doing it for a long time, even back when he was taking GE’s checks.
Bring this all back to the original accusations. Is BHS involved in the methadone clinic and trying to prevent it from coming in because they want one of their own? No proof whatsoever, no permit requests on file, just a lot of Guidestar reports that tell you nothing about the original topic.
@ Steven, Dan did say “THE PLANET is not in any way, shape, or form alleging, saying, or implying that BHS has engaged in any illicit behavior with respect to its holdings in the Caymans. Let’s be clear about that.”
And as far as the whole BHS, BHCS, Councilor Krol petition saga goes, I think where the suspicion comes into play is HOW Councilor Krol replied to Dan’s original post of him being an employee of BHS. It was his manner and tone that arose suspicion I believe. Kinda like if you had a little kid and you said to the kid, “Did you put your hand in the cookie jar and take a cookie and the kid says no “I never ever put my hand in the cookie jar to take a cookie” , “how dare you assume I took a cookie from the cookie jar” “get your facts straight dad, I don’t even like cookies, I’ve never eaten a cookie, cookies are bad for you, I prefer carrots to cookies, I don’t want to get cavaties, get real Dad, where do you get your facts from……meanwhile,
the are freakin cookie crumbs and an empty cookie pakage in the garbage. So the kid didn’t take cookies from the cookie “jar”, but rather straight from the package and his wild over the top response to your original question of “did he take cookies from the cookie jar” because he had chocolate on his face, rose your suspision and made you look in the garbage for the evidence…
I thank you for your contribution to this site as it adds GREATLY to the conversation, even if we don’t always see eye to eye on every point…keep up the great dialogue..
PS..I love your show!
Thanks Hilly Billy. I agree with you wholeheartedly on the Krol issue. Berkshire Healthcare is part of Berkshire Health Systems, and even if his paycheck said he was paid by BHCS, in one way or another, everyone who works for a BHS entity, like BMC, Fairview, etc., work for BHS. He should not have needed to couch that at all. You’re right about that.
But, to give another example dragging Dan back in – when he was earning money from GE, it didn’t mean Dan was tied to the hip with Jack Welch, that Welch was on speed dial or that they had ever even spoken to each other. Same goes for Krol and David Phelps. I’m sure they knew each other, but it didn’t mean Phelps was giving him political orders or that they saw each other much at all. What their relationship was or is, I don’t know, but John should never have tried to “shelter” the fact that he worked for BHS.
Glad you love the show – doesn’t everyone?
STEVEN
Your non-sequiturs approach high art, especially the artful (though irrelevant) dodge of your GE references. No evidence? That’s interesting, since no charges have been made at this address pursuant to any BHS enterprises or actions. In fact, there’s plenty of evidence, as we have shared from the 990 form and from other sources. THE PLANET is simply asking questions that need asking. With national health only a matter of time, we can understand trepidation from health service providers and the need for secrecy. However, we would like to know how a politically wired monopoly controlling the healthcare situation for an entire city and county is in the best interests of both healthcare, client service, and the economy?
DV – please help me to understand this. It is BHS that has the Caymen Islands account and not David Phelps, correct? I guess I don’t understand why they would try to hide money for tax purposes when they are a non-profit organization and, therefore, don’t pay taxes??
As you can tell, I’m really not up on tax shelters and who pays taxes and who doesn’t at all (except I know that I’ve paid a lot! 🙂 )
Molly makes an excellent point, why would tax-exempt, not-for-profit 501c3 Berkshire Health Systems, Inc. require a tax shelter in the Cayman Islands?
Or have need to shelter any assets whatsoever?
MOLLY
From Form 990, we cannot tell. All Form 990 does is disclose that BHS had financial accounts there. The filing is on behalf of BHS, not David Phelps, personally. From that, we can reasonably conclude that there are account in the Caymans with name of “Berkshire Health Systems.” This does not address, up or down, whether Mr. Phleps personally has accounts or holdings there. Perhaps Mr. Colbert would care to answer this question, and also these:
* What is the nature of the BHS holdings in the Caymans?
* Does BHS run a clinic or hospital there?
* What are the nature of the accounts?
* Are the accounts in the Caymans there to avoid paying U.S. taxes?
* How many trips per year do officers, trustees, or executives of BHS make to the Caymans? Do these trips come in the winter months or summer months?
@ Steven…No disrespect to DV, cause I hold him in high regard, but I think the Valenti to Welch comparison to Krol to Phelps analogy is a bit of a stretch in many ways…First, In no way does Krol touch Dan Valenti, in terms of “universal gravitational pull”…in other words, Krol couldn’t carry Valenti’s jockstrap…and 2nd, Jack Welch was the head of one of the top and largest companies in the world, which BHS, Cayman accounts or not, is not, nor is David Phelps but, if you believe Pittsfield Believer, Valenti and Welch, dined many a nights at Blantyre and the Red Lion Inn and 3) In local Pittsfield politics, powerful, local CEOs like Phelps certainly interact with Waterboys like Councilor Krol, trust me…Short of saying, l ate cheese and drank wine with them at a Chamber event, they rub elbows I’m sure, one place to start to look might be Krol’s campaign finance records…just sayin
HILLY
Today, I had lunch with Herman Munster in “The Booth” at the Red Lion Inn.
Did you happen to fill you pockets with the exotic teas?
@ Steven..go to http://www.goodmorningpittsfield.com and look at the bottom of the page to see who underwrites it…yup , you guessed it BHS…Now , ok, so Councilor Krol isn’t and wasn’t an “employee of BHS but rather BHCS, BUT BHS underwrites his show’s website.c’mon this reeks!!..and you know who underwrites the show itself…yawn…the BORING BROADSHEET…
HILLY
What an amazing coincidence, huh? That PCTV runs a show sponsored by the Boring Broadsheet, which itself has a show on PCTV, which has a board consisting of “players,” that airs a show from BHS … wait, let me stop. The world of local politics is too small for THE PLANET to fit in … thankfully!
If only both of you could read, you would see that neither the Eagle or BHS “underwrites” Good Morning Pittsfield. It is “sponsored by Lenox Softworks,” which is the only site you get to by clicking on the bar that has the Eagle and BHCS logo, in addition to that of WTBR and PCTV.
PCTV does not allow underwriting of shows – it can’t accept advertising of any kind, even underwriting. You join PCTV as a member, pay an annual fee as a business member or individual, and you can produce a show.
Good Morning Pittsfield is aired on WTBR, which is why their logo is there. WTBR is a non commercial FM station, and also by law is now allowed to advertise. It airs in simulcast on PCTV, which is why their logo is there. John used to work for BHCS, so he included that logo, which he should likely remove since he no longer works there, and he received some editorial support from the Eagle. None of them “sponsor” or paid for the program.
BHS produces two shows on PCTV – the Berkshire Health Program with Dr. Ed Hornstein, and Get Cuffed Berkshires, a show about blood pressure, and mine is rising as I type.
I meant “not” allowed to advertise, in reference to TBR. Even the master of Truthiness has typos.
STEVEN
The producers of “Good Morning Pittsfield” need to remove the BHCS logo, immediately, since it “advertises” an association that is, from your information, not true. We just love, though, the “Chartock Effect” — where a radio or TV station can take “underwriters” (not “advertisers,” mind you. Then, on WAMC, we get more commercials than commercial radio and more plugs than can be found in an electrical supply house. Once you look at the names on the various boards of power in the community — i.e., BHS, PCTV, etc. — you realize, as Disney told us long ago, “It’s a Small World, After All.”
krol’s show does not originate at PCTV but is done at WTBR, 89.7 FM, out of Taconic High School and an entity of the Pittsfield School Dept. krol state every morning he hosts the shoe that it is underwritten by the Berkshire Eagle. You should know this John, as you read it every day. I watch every morning for ammo.PCTV provides a camera and broadcasts on Access Pittsfield, Channel 16 on local cable. His show is underwritten by the BB, no doubt about it, which is a different word for sponsoring.
@ Steven..if you could read you would see that my post said that the Good morn Pitts WEBSITE was underwritten by BHS my good friend…goto the website and look at the botttom of the page..
Thank you Steven Colbert very enlighten information. I also wonder how this clinic got into a witch hunt of BMC. By the way I have had many medical dealings with BMC and received nothing but great service. And there staff from janitors, nurses, doctors and so many more have been nothing but caring, polite and helpful. Thank you all at BMC
Thanks for your comment, Concerned. It’s very nice to see that the negativism that seems to be so rampant on comment boards hasn’t infected you. It’s unfortunate that some people who don’t like the hospital or have had bad dealings in the past with people who work there (such as Ray, it seems) take out their frustrations on the hospital as a whole, and act as if it’s some evil entity. The people I work with are just as you described – caring and compassionate and committed to providing good care, from the nurses to doctors to housekeepers, security, engineering and food service.
STEVEN and CONCERNED
No one here has ever criticized the quality of medical care that’s delivered by the hospital. The hospital, as you know, is only one of at least 26 — twenty six — other companies set up by BHS. Are at least a couple what we could call shell companies? I agree with CONCERNED that BMC offers a great, even superior, level of care. What is at issue here are the questions associated with the meth clinic, the monopolistic nature of BHS, whether a community is best served by such a monopoly, and questions surrounding such revelations as financial holdings in the Caymans, known the world over as a preferred destination for many of the dollars belonging to corporations, wealth individuals, drug kingpins, and criminal money needing laundering.
I feel even better now about the possibility of not being able to buy my kids Christmas presents this year if you all know someone who needs work done just click on my suspicious orange colored name. Maybe I’ll Call or mail Phelps. Is there a wikipedia on this guy how the [BLEEP] does one get to where he is I’d love to pick his brain and good for him.
Anonymous nom de plume Steven Colbert,
You ask “What does the Cayman Islands have to do with any of this (the issue of whether or not Berkshire Health Systems, Inc.) was involved in the Mayor’s decision to oppose the proposed methadone clinic downtown (in Pittsfield)?”
Fair question. The answer has to do with the ethics and integrity of those running BHS, Inc, how much veracity should be assigned to statements made by these business executives, and the transparency behind the manner in which the organization and its subsidiaries are operated.
RAY
If BHS is unequivocally not interested in — now of down the line — methadone clinics such as those operated by Spectrum Health Services, the hospital would be more believable if it issued a press release flat out declaring the same. Also, the one sure way to answer any questions associated with its financial holdings in the Cayman Islands is to issue information as the the nature of those accounts. Instead, the organization decides to respond with Mr. Colbert, who is excellent at his job, and a series of non-sequiturs and side-steps … as many dodges as can be found for otherwise taxable dollars in the Caymans, for instance.
Why, exactly, Dan, would the hospital need to issue a news release denying something that a handful of bloggers have alleged. If I were to allege, in a blog comment, that Europolis Management and Planet Media was not properly representing its authors, would you actually issue a news release denying it? Or would you know that wasn’t the case and shake your head and wonder how Steven Colbert could be so dumb? (And since I have my own show on Comedy Central, we all know I’m not dumb).
If I accuse Ray Ovac of being Glenn Heller, known for his illegal price gouging while the owner of Beacon Hill Gulf, should he also issue a release denying it? Your statement is silly.
I also have not issued non-sequiturs, but facts. And if you want to know if Ray is really Heller, start a thread on whether the Walmart in North Adams “covered up” an incident of shoplifting involving a prominent politician’s spouse. You’ll never hear the end of it.
STEVEN
I’ll tell you why. Europolis Management and Planet Media Books do not control the business management or publishing business of all of Berkshire County. BHS, on the other hand, controls healthcare for that same region. You won’t find any circumstantial evidence suggesting that Europolis or Planet Media managed its artists, musicians, or writers improperly. My companies are privately held. BHS is not. My company is for-profit. BHS is “non profit.” The actions with respect to the councilor’s petition on meth, the city’s actions against Spectrum Health Systems, and the subsequent information that BHS is in the methadone treatment business lead many reasonable people to question the actions. Therefore, as even you can see, being the sharp guy you are, the situations are entirely analogous. My companies receive no subsidy from taxpayers. At Europolis, Planet Media, and Planet Valenti, we sing for our own supper. We have invested our own risk capital, borrowed not once cent, as are reaping the profits or incurring the losses in a competitive market. BHS has little to no meaningful open-market competition. Monopolies are general not good.
STEVEN
And no, Ray Ovac, the the best of our knowledge, is not Heller. Let’s put that one to rest right now.
Ah, always the ultimate qualifier – to the best of our knowledge. A convenient way to say you don’t care if it is Heller, despite his history. I notice he hasn’t said he isn’t Heller. Why is that, exactly?
I agree with you on the BHCS logo, it should be removed from any link to the show, as there is no longer any relation between the two. Alas, that’s something I have no control over. And if WTBR is still classified as a non-commercial FM station, John should not be using the term underwriting. Underwriting is allowable on public radio stations, as you mentioned, but it is not allowed on non-commercial ones. They are allowed to state that a business has “donated in support” of the program, but cannot mention anything else, even a business tagline. I don’t know, maybe TBR’s status has changed, and if so, fine, but if not, underwriting is not being used in its correct terminology. I’m sure either way the FCC is just losing sleep over all of it.
By the way, I also see no evidence, circumstantial or otherwise, that BHS is involved in the city’s decision making process regarding a methadone clinic. And BHS does not maintain a “methadone treatment business,” it operates a substance abuse recovery unit which uses methadone, for some patients, as part of the treatment regimen. And only does so on an inpatient basis, as has been mentioned before. The methadone clinic being proposed is purely outpatient and exclusively for the dispensation of methadone.
It’s the weekend, Danny! Enjoy Foxboro, supposed to be great weather tomorrow for the demolition of the Colts.
STEVEN
He is not Heller, as best as I know. Honestly, I don’t know one way or the other. That is not a qualifier. That’s the statement of fact regarding my knowledge of who Ray Ovac is. THE PLANET has a way of tracking the real IDs of anyone who posts. Except for a couple of instances, and only when we determined it was warranted, have we done this. We do not try to determine identifies, just as we do not try to determine yours (though we could make some highly educated guesses!). If someone wants to use their own name, fine. If not, fine, as long as they keep the comments responsible and within the reasonable bounds of “good taste” (and no, we won’t open THAT can of worms). Our basic definition of a “good” post is one that keeps the discussion, debate, and deliberation moving forward … Good points on BHCS logo on “GM, P” show. I laugh when the so called “non-profit” WAMC does its endless and endlessly repeating fund drives. The dough they try to weasel out of people (largely on a guilt trip) is considerable. In their regular programming, though, their endless streams of “underwriters” (aka, advertisers) includes the name of the business, tag lines, sales, upcoming events, and other info. Sounds like an ad, reads like an ad … The circumstantial evidence that BHS is involved in the city’s decision making process, in general, is anecdotally extended and deep. Fact is, may of BHS’ officers and trustees hold other positions of power and responsibility in the city of Pittsfield. You are not going to pretend that you are naive about the nature of Pittsfield politics, are you? Come, come, sir! The fact that a city councilor who is a former BHS employee introduces a anti-meth petition (then denies he was “never” employed by BHS), and the fact that the city’s attorney is also an officer and trustee of BHS, to name just two circumstances, can be seen as evidence — not proof of any wrongdoing, certainly, but enough to raise questions, which is all THE PLANET has done.
As for the SUPERPATRIOTS, we shall be in our seat, 50-yard line and all-access passes, watching the reenactment of the Little Big Horn. You remember that little affair, when this cat Custer got into a heap big trouble with some injuns. Always a pleasure, SC.
Thanks for your thoughtful Saturday night note, Dan. I would not dare to consider that a large organization in any community does not have “influence” in local politics. When GE was the largest employer, they too had influence, to be sure (there I go again making those comparisons you so hate). Politics and business have a comfy political arrangement dating back to the Romans or even the Greeks, I bet.
I know not what the impetus was for Councilor Krol’s petition, but given its nature, such a petition, if it became ordinance, would apply to all parties, BHS included, and I don’t see how the way it’s worded somehow benefits BHS.
Also, as someone familiar with planning, I do not believe such an ordinance would pass legal muster as pertaining to the current proposal, as I do believe you can’t draft an ordinance to stop a business from opening after said business has already indicate its desire to do so. It would only apply to those that came after. In other words, you can’t retroactively prohibit something with such an ordinance. I could be wrong, but I think I’m right on that one.
I also just love the fundraising mania of our public radio outlet locally and their attempts to label it as something other than commercialism. It’s like trying to claim Christmas is purely a religious holiday and gifts have nothing to do with it.
STEVEN
We are in total accord of the WAMC Eternal Fundraising Drive, where they beg, cajole, and use guilt to fleece the gullible out of their $$. We both also just “love” how, on regular programming, one is subject to endless lists of adverti … er … “underwriters” (sorry), who get their name, address, tag line, and a what is in-effect a commercial. Fund drive, when they ask, I tell them: I already gave. Against my will. They’re called federal income tax dollars.
My final note of the week, as I need to use Sunday to get ready for Monday’s Colber Repor… if Battery Man is not Heller, shouldn’t you issue a press release declaring that?
A zoning ordinance would not pass muster, however, a general law ordinance could if there were specific local licensing restrictions. As I pointed out in an earlier post, the Fifth and Fourteenth amendments are what is in question here, and I believe that the City should watch itself for takings and due process claims.
Steven Colbert,
Excuse the brusque tone, but BHS, Inc. insider or not, just who the hell are you to try to limit discussion on an incredibly newsworthy story uncovered by DV, a topic which no editor at the Berkshire Eagle would ever have the stones to either write about or ask questions?
However we got here, the title of DV’s revealing column — actually it’s a major scoop — today is “Anatomy of a Non-profit’s Tax Filing, or, Why the Heck Does Berkshire Health Systems Have Financial Holdings in the Tax Haven Cayman Islands??”
That’s the topic and the question, Steven Colbert.
Now since you, Colbert, claim to be affiliated with the very organization which is the focus of the discussion, and since you represent yourself as an insider to the umbrella firm, just what series of facts can you present here that will either add to the discussion or provide answer to the question DV asks in the title to his revealing news story?
You can try, Ray, to convince us all that the topic of the conversation is now the Cayman Islands, but it’s not. As I said, this STARTED with people like you accusing BHS of being the big bad culprit behind the Mayor’s anti-methadone clinic stance. You also accused BHS of having the intention of opening its own clinic, which is why you claim this entire controversy started. None of the other side issues would have arisen if you and others of your ilk hadn’t made the initial accusations, which are patently false.
I take exception to your comment that I have tried to limit discussion in any way. I haven’t, and certainly can’t, as is evidenced by the comments freely being made.
It’s unfortunate that commenters like you have only reply when you can’t respond using logic and intelligence – you resort to attacks. Whether you agree with me or not, I have not at any time gone on the attack against you and have simply refuted your false claims.
Your tactic is always to make a definitive statement as if it’s true and it can’t be disclaimed. I tell you BHS is not opening nor has it ever planned to open a methadone clinic (outpatient center). You then say I’m wrong, but have no proof.
Let’s turn it around… I say you have some financial interest in the building Spectrum is looking to go into. I say you and the current building owners are close and your accusations are designed only to deflect attention from your own self interest, because if Spectrum doesn’t move in, you lose money.
Now, prove to me that you’re not financially involved. You see? You can’t. You can say you aren’t, you can scream at the moon all night, but it doesn’t prove you’ve never been involved with the owners of the building. Are my accusations any truer than yours? I hope not, but I do hope you finally get the point that just because you claim something is true, such as the convoluted conspiracy you’re trying to pass off, doesn’t by your simple statement make it true.
And as for changing the subject, my initial post does clearly address the Cayman Islands. If BHS were “hiding” something, why would it be on their 990’s to begin with? Are you implying NO other companies, for profit or not for profit, have accounts in the Cayman Islands? Please prove it, if that’s the case.
Just because you’re a not for profit, does not mean that you pay no taxes, by the way. BHS pays social security tax and others on all employees – all 3,000 of them. Williams College is a not for profit, it has a 1 BILLION dollar endowment. Check their 990s and see what’s lurking there.
Paying social security taxes and unemployment insurance, etc., is NOT the same as paying income tax. Regardless of how much money they hide in the Caymen Islands – that will NOT reduce the amount of ss taxes, unemployment ins., etc., as that tax money is a % of total payroll. And payroll, in the form of W-2’s (and other required forms) IS reported whether you have accounts in the Caymen Islands or not. (Although I don’t know the in’s & outs of taxes as I already stated, this I DO know).
So I just did a Google search and came up with this helpful site: http://www.investopedia.com/ask/answers/08/nonprofit-tax.asp#axzz1fRQ7o7bI
Briefly, it states: “Section 501 of the Internal Revenue Service (IRS) tax code exempts qualified nonprofit organizations from federal taxes.” “To be exempted from federal taxes, nonprofit organizations have to meet certain rules. Some of these rules include:
•Being organized and operated exclusively for charitable, scientific, religious or public safety purposes.
•Collecting income and turning over entire amount less expenses to organizations or individuals who are lawfully recognized as legitimate charities.”
“Nonprofits are also exempt from paying sales and property taxes. While the income of a nonprofit organization may not be subject to federal taxes, nonprofit organizations do pay employee taxes (Social Security and Medicare)”
So then asking why they hide income in the Caymen Islands when they are a non-profit, becomes a very interesting question.
As I’ve said before, placing investment income in places like the Cayman Islands is not unusual. Massachusetts General Hospital, on its 990, lists “investment income” as being held in “Central America and the Caribbean” and “Europe.” Williams College similarly has the same list for where it holds investment income. Are they both “hiding” income, as well? Both Mass General and Williams are non-profits. Oh, and Williams has a $ 1 Billion endowment, far in excess of anything BHS could have in investment income.
Neither Williams or Mass Gen pay taxes, however, they and BHS DO pay a considerable “donation” to the cities and town they are located in to help off-set the loss of tax revenue. It’s not a formal in lieu of taxes agreement, but they all do pay a lot of money to help their cities and town to balance their tax sheets. The same is true of almost every other non-profit hospital. North Adams Regional makes payments to the city, but pays no “taxes.”
I know better than to reply when I honestly don’t know a lot about this. But here’s a quote from Mass Gen’s website:
“In August 2011, Becker’s Hospital Review listed MGH as number 12 on the 100 Top Grossing Hospitals in America with $5.64 billion in gross revenue”. A not-for-profit??? Are you SURE? If so, then why aren’t these “Occupy Protesters” protesting this gross wrong in our country?
MOLLY
Good work. Yes, don’t you love how much money these “non-profits” are sitting on? We don’t know the number of the total net worth of BHS, in part because of the hidden assets in the Caymans. “Non profit” is too often used by corporations that are every bit “for profit” except for their technical status. If a “non-profit” makes $100 million in a year, and its balance sheet shows it spent all of that $100 million, bingo, it’s “clean.” Look, when we’re talking sums of money in the BHS League, the temptation for “funny business” looms large. The possibility of corruption is ALWAYS with us because of human nature, but when you get into the big leagues of finance, the temptation button becomes more alluring.
Molly:
Great find and a better question, once you see the revenues most of these places have and the resources tucked away etc. it will start to become clear why Obama and others want access and control of it. MGH and for that matter all of Longwood ave. is sitting on tons of money, all of it earned but boy would some in Government love to use it to offset deficits . It will be interesting to see what happens when we get free healthcare. And help me out here where do I get those little emoticons?
I like them ;no it isn’t a like button but hey a guy has to make due with what he has.
Just sayin
JOE AND MOLLY
Isn’t it curious that Mr. Colbert has employed a continuous defense that because other oinkly-wealthy “non-profits” has tucked money away in tax havens such as the Caymans, it’s somehow supposed to be accepted as ho-hum routine that BHS does it. The “everybody does it” defense, of course, is no defense at all and is employed as a tactic, when you have nothing else in the ammo clip. The question is why does BHS, as a “non-profit,” hide assets in the Caymans? We can’t tell, since we don’t have any of the information. We are, as a public, however, required to subsidize BHS’ status as a “non profit.” The “Caymans Wrinkle” emerged as a new element in the discussion that began with an examination of the issues surrounding the meth clinic petition to the city council and the city of Pittsfield’s actions against Spectrum Health Services. Given that the sponsoring councilor was a former employee of BHS and denied it on a technicality AND that the Pittsfield city attorney is also a trustee and officer of BHS does seem more than a coincidence.
STEVEN
You’re using the “everybody does it” defense, a tactic employed by kids the world over when they want to justify something stupid, wrong, harmful, or dangerous: “But ma, everybody’s getting tattoos on their face!” Why on earth is Williams College or Mass General relevant? Education is not health care, for one. And any “non-profit” that uses its legal status to make huge amounts of money without having to pay taxes … why, in the Dreaded Private Sector, we call that a scam.
What does BHS pay the city in lieu of taxes? Anybody know?
MOLLY
Great post. Your final question is right on the money. Literally.
Steven Colbert for President!! Take that Battery Man!
Social Security isn’t a tax, it is a contribution that employers must match with their employees.
great story great conversation great dialogue. bottom line, as mr. ray o. says, is contianed in the title of the story. if mr. colbert has inside information maybe he can tell us what BHS has worth hiding in terms of finances in of all place the cayman islands? Fishy.
I find it odd that Mr. Ovac would criticize the infamous Cayman Island tax loophole (that many corporations use) and the big profit that Mr. Phelps makes, as those are 2 things his Republican friends fight for tooth and nail.
I also find it interesting that Mr. Ovac is smart enough to see thought the liberal Dem’s BS, yet at the same time is dumb enough to believe the conservative Repub’s BS.
Quite interesting, all these contradictions.
We are all “walking contradictions — partly truth, partly fiction.” — Kris Kristofferson
If it’s true that Ray Ovac, the anti-energizer battery, is Heller, you should be surprised at nothing. I would only ask you to do a search for Beacon Hill Gulf, and you’ll see exactly what he’s like and how he had no issue whatsoever price gouging customers for gasoline. And none of this is speculation or accusation, but documented facts.
STEVEN
Nope. He’s not Heller.
Mr. Colbert:
First I have to say thanks for engaging us in this conversation I am sure I am not the only one benefitting from this conversation. All of us need to be aware of both how healthcare is delivered and consumed. As a Continuation from yesterdays posting carried over to today’s, the entire CON /DON process sets up a false economy. Where licenses are bought and sold at market rates based upon perceived value not on quality of patient care.
If I recall correctly there was 14 Radiologist who were involved in that business deal, if any group wants to pool their resources and take the risk of setting up a business why shouldn’t they be allowed to? As long as all things are equal, I don’t want them using unproven or non FDA approved devices, nor do I not want them to be accredited by the appropriate agencies JCAHO, ACR etc. Sorry I digress if they feel they can deliver a better product in a better manner that consumers deem best via free choice what’s wrong?
I know the hospitals position is going to be radiology is a money maker and those monies fund the non money making departments and if that revenue stream is compromised all services could be in jeopardy, I understand that argument and can sympathize with it to a small degree. What keeps the hospital from deploying the same technology and delivery system as the private entity? I know that a private system has the ability to run amuck as well, example refer all patients with health insurance to my private facility and the (as we determined in a prior post) lo pay no pay to the hospital thus resulting in further financial damage to the hospital (I use the term generally not specific to BMC) The Hospital has an advantage as well, it pays no property taxes nor excise taxes on the equipment it has as well as advantages in other areas as well, lease vs. purchase and capital improvements. These may or may not be available to the private company. Are the Radiologist who were involved in that arrangement still reading for BHS or any of its entities or have they decided to “seek other opportunities?” Just curious.
As for the Cayman island issue and the bank account in the Islands I did not read that any illegal activity was taking place nor was it suggested. Is it true that BHS has or had gone to court against the Medicaid and Medicare reimbursements and wanted full rate reimbursement based upon the fact that we have 73% publicly insured ? Or as it’s referred to in the industry disproportionate-share. Meaning that there is not enough private paying insured to cover the reduced costs of Medicaid (45-90% of actual cost) to offset the loss?
This is where it gets dicey for me and I AM NOT ALLEGING ANY WRONG DOING, but I find it fascinating an outside interest was closed down to in part insure the revenue stream for BHS, My and Ray Ovac’s, Molly’s, Anytimes, Mr. Colbert and DV’s Insurance cost, tax dollars plus any additional payments garnered from the state in the disproportionate-share case will be used to make payment to BHS and they are sheltering assets in the Cayman islands. Yes it’s legal but we do have the right to know. And we can decide the morality of the corporation based upon ALL the information we have. I mean we should all be wise consumers not just of health care but of everything.
As for the discussion the fact that this is being had is awesome in my pinhead opinion, sadly some of it is speculation, conjecture and some might simply be jumping to conclusions. I hold the Management staff at BHS in part culpable; they are entitled to and get our tax free support based upon their status. If they had stock holders would they be certain all the stock holders understood both the organizational structure and the financial arrangements? Off shore bank accounts and the reasoning for them?
Just sayin
A few corrections, Joe. BHS does not pay real estate taxes to the city, that is true, but it does make a considerable donation to the city that is not a formal payment in lieu of taxes, but is sizable nonetheless. Williams does the same for the town of Williamstown, I might add.
The proposal made by the former radiologists was as follows: they wanted to continue to have an exclusive contract with BMC to provide radiology services while also being able to open their own private imaging center, which would have no connection to the hospital. The hospital’s question was – who will you direct to your own center, and the answer became clear – they would pretty much refer patients with private, or “good” insurance to their own center, and all others, funded by government payers, would go to BMC. In other words, the profitable patients go to the private center, the hospital can bear the expense of caring for those who won’t “make us money.” It was laughable at best.
The hospital then decided to cut its ties with the group, as the contract was over anyway, and recruited a new radiology group. The new radiologists have served the hospital ever since. In the old group there were 6 or 7 doctors, not 14. Most have left the area. Also, prior to their own center closing, it became very apparent that the “senior” doctors were taking all of the profits, leaving little for the doctors they had themselves brought in to work with them. All of those doctors left, in disgust.
The hospital did not close the private outpatient imaging center. It failed because it could not compete with the hospital, and I would challenge you or anyone else to tell me that the hospital did not have the right to compete.
On your question about DSH, yes, BMC was initially part of a suit challenging the state’s decision to underfund DSH hospitals, joining several other hospitals in seeking fairness in payments when compared with the Medicaid funding granted to other hospitals, such as Mass General, which received a higher rate of reimbursement while all of the hospitals in the suit were also serving disproportionate populations of Medicaid patients. The suit was dismissed a long time ago, and none of the hospitals expected to receive money from it – they wanted to make a point and be on record in the event more money did become available at the state level. So, no, you will not see BHS receive additional state funding as a result of that suit. In fact, it is apparent that under both state and federal health reform, public funding for providers will continue to be tightened, not enhanced.
Steven Colbert:
Once again, I thank you for engaging us in the conversation, a couple of follow up questions. I am not certain what Williams College does or does not do; and whether it is salient to this conversation. No disrespect but I thought the post was in regards to BHS.
I certainly do appreciate the fact that BHS “…make a considerable donation to the city” once again It is nice that they do and I do appreciate the fact that they do however the questions that we discussed are completely unrelated to that.
I appreciate the info on the Radiology group it was some 8-10 years ago and I was not involved in nor a part of the deal, where you actively involved in that? Or simply put since you are an insider are you using first hand information? Once again no disrespect just wondering?
Yes the Hospital absolutely has a right to compete, however competition infers a level playing field.
I read your comment about the Radiologists wishing to self refer and am somewhat confused here, I know since you are the “insider” (which I appreciate by the way) I question if the outpatient clinic would have been bound by the Stark amendments? Either Stark1 or Stark II which made it illegal to self refer based upon conflicts of interest law.
http://en.wikipedia.org/wiki/Stark_Law
I know that portions were in fact vetoed by President Clinton but not being an insider I don’t have all the nuances, and the fact it was awhile ago, was it 10 years? And I’m sure in your position you have them.
Regarding DSH essentially you state the position of BHS was not that they intended to collect but wanted to be sure the opposition was voiced. Is there no other vehicle available besides the courts? It seems to be a waste of resources to get tangled up in a suit in the event monies became available to be on record as requesting them.
I concur with the opinion that State and Federal reimbursements will be cut, to keep pace with the cuts more efficient manners of both delivery and management will need to be developed and implemented.
Once again I thank both you and the staff of BHS for answering the questions, from your responses I would have to think you are either in Regulatory Affairs or the PR department. The fact that a thoughtful measured responder was dispatched to discuss this with us the laymen speaks volumes to the value of the BHS brand and the desire to see it stay at the top of the heap.
Thanks
STEVEN
Fact: BHS, despite a net worth of, what, $400,000,000, and a revenue stream generated by at least 27 companies pays no property, income, or sales taxes.
Fact: BHS does, as you say, “make a considerable donation to the city that is not a formal payment in lieu of taxes, but is sizable nonetheless.”
Question: Please define “considerable” and “sizable.” Be specific, and let us be the judge of what these two subjective terms mean.
Question: Does BHS have to make this donation to the city?
Question: Is it fair to say that the “donation” buys a lot of political influence?
These are simple, honest questions. Please respond at your convenience.
Dan If BHS paid a donation to the city in lieu of taxes,to make up for all of the property they have bought it should donate MILLIONS OF DOLLARS PER YEAR! My guess its less that one hundred thousand dollars..
The smiley emoticon is simply : – ) with no spaces between those three punctuation marks. Wen you press Submit Comment, it changes to a nicer looking smiley. 🙂 Let’s see, does the sad face work? 🙁
😉 I got my like button 🙁 I got my dislike button
Thanks Molly you have spared the entire planet any additional whining, begging and pleading for a like dislike button.
Look out world the planet is taking another giant leap into the techie world
Thanks Molly
Dan Valenti, I am curious as to why GM Heller, after being banned from this site, is now being allowed back in as “Ray Ovac”? Or should we call him Duracell or Eveready?
If this is true, and it is Heller, it explains a lot.
It’s not true, Steven.
JPinhead thats a great post. you seem to know what youre writing about here. are you in the medical field. i am like you grateful that this conversation is taking place in the only media where it possible could, the planet.
PB:
Thanks for the kind words I am delighted that this discussion has taken place. I am however extremely sorry that at a historic time of monumental healthcare fundamental change ,our medical delivery system here in the City was for all intent and purpose mum.
I do not expect nor do I desire for them to advocate on health care delivery one way or the other but at this time they could have educated the community you know stepped up and said single payer means this to us and this to you. And this change will mean X Y or Z. You can bet they have and are still looking for ways to maneuver around whatever comes down the pipe to their advantage. Do they have an obligation as a TAX free entity to help us unravel and decide what it means? I think so
Just sayin
I agree – this is a GREAT post! Good job, per usual. You’re a “patriot” and not a “pinhead”!!! 🙂
Does anyone know anything about Robert Gaston INC???
Scott – is it Robert Gaston or Gaston Roberts? Gaston Roberts is a General Contractor in the area — has been for years. Other than that, I don’t know anything about them.
Ok that makes sense he was listed on the deed of Phelp’s house he must have built it. I was just wondering what the connection was.
Mr. Krol:
While I understand your offer to meet I am not certain that I have the time to sit down with you and instruct and or show you how to perform Constituent service. As a ward Councilor I’m sure you understand the importance of reaching out to all of your constituents…. and first understanding their concerns and secondly insuring they are addressed by the most knowledgeable person or department available.
I would be more than willing to ask the planet here to allow for posting in a forum area- in an attempt to hear from a broader perspective than just I can give.
We could ask the Planet here to publish a brief outline of the mechanics of the open public meeting along with various methods of participation, IE e-mail questions and concerns a live broadcast using U-stream or Live stream or something of the sort to allow all those wishing to participate the ability to regardless of physical location. We could solicit areas for discussion and pick say the top 3 areas of concern and then select the appropriate areas of expertise to answer. This would allow us the ability to log, archive and attach data for future reference.
If interested please provide an e-mail address that will allow for all of our communications to be entered into the public record. IE a city provided e-mail thus ensuring it is properly archived as is required by public records law.
In Massachusetts, the term “public record” is broadly defined to include all documentary materials or data created or received by any officer or employee of any governmental unit, regardless of physical form or characteristics, unless it falls under one of the statutory exemptions to the Public Records Law. G. L. c. 4, § 7(26). Consequently, email is subject to the disclosure, retention, and maintenance provisions as required by law. G. L. c. 66.
I look forward to getting started, Planet are you on Board?
Sorry should have been in yesterdays blog.
MR. PINHEAD
Let me see if I understand what you have proposed. In response to Mr. Krol’s invitation to be on his show “Good Morning, Pittsfield” on PCTV, you want to engage a broader audience by having, in effect, an electronic town meeting that would be hosted by (appear on) this site. People would have the ability to enter questions via computer in real time while the meeting streams over the computer live. Do I have the gist? If so, I LOVE the idea. In fact (assuming my understanding of what you’re proposing is correct), I would volunteer my services to moderate and host such a meeting. Could such a meeting also be broadcast live over TV? I’m not as sharp at you obviously are with the technical hoo-ha on how to do such a meeting, and I would not be able to help there. But I will commit to moderate, providing I understand what you’re proposing. I would ask my right honorable good friend, Mr. Krol, to share his thoughts on this.
TO JOHN
It sounds like this might be worth while. What say?
Yes you understood the concept perfectly; I would even go so far as to say this is something that could be done on a recurring basis. You understood and grasped all the bell and whistle talk perfectly, Some said you were a Luddite. If I could only get a like button.
just sayin
o (like) 🙂
Excellent idea!!!! Truly excellent!
Has Krol ever admitted that he kinda sorta fudged his answer to the, “do you work for BHS question?
Even if BHS is as pure as the driven snow as Mr Colbert suggests, there is no denying that many board members/trustees have names associated with Good Old Boy politics. Those are the politics that seem to heavily favor special interests at the expense of blue collar workers not connected to the power.
I’ve addressed this Dusty, and you will find that I, Steven, head of Colbert Nation, do attest to believing you are correct about Mr. Krol and his denials. He did work for BHS, plain and simple. BHS and BHCS are interlinked and I’ve never said otherwise. I also noted that Boards of Trustees for any organization are made up of local, well known and respected business people and civic-minded people. You may not agree with the content of any individual’s character, which is your right, but you don’t find too many John Doe’s on Trustees boards anywhere. I also will say that those that serve BHS are good people who give back to their community in many ways.
Thanks Steve. What I was looking for was Mr Krol himself coming out and admitting he “misspoke” when he said he did not work for BHS.
Alas, as a politician, I am sure Mr. Krol, if he ever does admit to having been an employee of BHS, would state his comments were “taken out of context.” As for your other question, the answer is nothing, board members are not compensated for their service, unlike some other boards we have seen in the news of late, thanks to the AG.
STEVEN
Great post. Thanks.
As to your point re: Mr. Krol, yes, he did admit in a phone call to THE PLANEt last week that he worked for BHS through BHCS. Same thing, as we both agree.
What is the compensation for service on BHS’s Board?
Here’s a good, informative article from “Pittsfield.com” about Dr. Omar Faruk, head of (owner of?) “Experience Wellness Centers” – the suboxone clinic that IS and has been on North Street for over a year, talking about his clinic and the controversy with the Spectrum proposal. (Note: this is interesting!: “Faruk emphasized that since his centers have opened, the response from both communities has been more positive than negative. He said both Springfield’s Mayor Domenic J. Sarno and former Pittsfield Mayor Charles L. Smith have thanked him for his work.” CHARLIE SMITH???? LOL)
http://www.pittsfield.com/story/39855/Pittsfield-Addiction-Expert-Weighs-In-On-Opiate-Treatment.html
And, Molly, does he indicate anywhere that BHS tried to block his center from opening or has interfered in any way? No, he doesn’t.
Nor did I indicate or imply that he did. Why do you assume that EVERY SINGLE POST is in regard to BHS? Perhaps “he who doth protest too much” would apply here?I merely posted it for back-ground information — basically that they have been on North Street for over a year and NOW Councilman Krol is submitting a petition to block all Meth Clinics AND Suboxone Clinics from our downtown. Too little, too late Mr. Krol!
Here’s something of note: Travel expenses.
Berkshire Medical Center, Inc., a Berkshire Health Systems, Inc. subsidiary, reports to IRS for fiscal year ending 09/30/2010, travel expenses of $729,689. (IRS Form 990, Part IX, line 17)
Link to Guidestar: PDF pg. 10:
http://www.guidestar.org/FinDocuments/2010/042/791/2010-042791396-07722657-9.pdf
——————–
BHS Management Services, Inc., another Berkshire Health Systems, Inc. subsidiary, reports to IRS for fiscal year ending 09/30/2010, travel expenses of $256,713. (IRS Form 990, Part IX, line 17)
Link to Guidestar: PDF pg 10:
http://www.guidestar.org/FinDocuments/2010/222/755/2010-222755258-076d7c43-9.pdf
BHS Management Services, Inc. describes its mission to IRS:
“To provide management services to not for profit corporations including controlled affiliates of Berkshire Health Systems”. (IRS Form 990, Part III, line 1)
And adds this:
“BHS Management Services provides management services to not for profit to corporations including controlled affiliates of Berkshire Health Systems, Inc. This coordinated effort provides financial accounting and administrative services which allows the system to operate more efficiently, react more quickly and perform in an integrated manner.” (IRS Form 990, Part III, line 4a)
Link to Guidestar: PDF pg 2:
http://www.guidestar.org/FinDocuments/2010/222/755/2010-222755258-076d7c43-9.pdf
———————–
Those interested in this topic may wish to review BHS, Inc.’s other tax-exempt subsidiaries (their IRS Form 990’s on Guidestar) to see just how much more money is being reported as travel expenses by the Berkshire Health Systems octopus.
Wow, Heller has uncovered such a hidden treasure. He seems to be aware that a company that has 3,000 employees has travel expenses! Keep up the good work, Glen!
SColbert
We’re glad you mentioned Valenti’s past association with GE. He wrote Jack Welch’s speeches and now Jeff Immelt’s and has been doing it since the early 80s. Not a bad deal if you can get it. This “voice of the little guy” , since you mentioned Europolis Management, (Valenti’s company) has a management deal with none other than Sweet Baby James Taylor through that company. How much do you think 15% of what Taylor will make in 2012 is worth?
I do believe Dan is being very humble in regard to his own financial assets, as you indicate. But I also firmly believe that’s Dan’s business and if he can make money, he should make as much as he can… just as any other business should, right? Keep Believin’ Believer!
STEVERINO
Only in America, Land of Opportunity.
Welllll, any business EXCEPT a “not for profit” and thus tax exempt business…
Very important qualifier Molly. Do you think Steve agrees?
If you were correct, Molly, then not for profits would not exist. Your literal definition, which would mean a not for profit makes each year exactly what it spends, would mean that only one year of a negative operating margin would close the business. Think how silly that would be.
In 2008 your community hospital lost over 10 million dollars due to the economy. Did you want it to close right after that? Not for profits are allowed to earn positive margins (or profits if that makes you feel better) as long as those margins are then reinvested – unlike a for profit, where the profit goes to the shareholders in the form of outright payoffs to those shareholders.
When a not for profit like BHS “earns” a small profit, of say 1%, which is their average, it amounts to a few millions. It’s a lot to an individual, but when you realize that GE sells its CT scanners and MRIs at a cost $1 million each or more, that’s where the “profit” gets spent.
BMC has been around, in one name or another, for well over 100 years. Its buildings, for the most part, are old. Old buildings need to be renovated to modern code, which is very expensive. Facilities regularly need maintenance, which is costly.
And guess what? Every year BHS has to write off millions of dollars in care because they had the nerve to care for patients who could not afford to pay, as their mission statement says.
If you would really like not for profits to operate on a zero balance system each year, say goodbye to the American Cancer Society, American Heart Association, National Endowment for the Arts, the Smithsonian, and pretty much every hospital in the state and most across the nation. Ridiculous argument.
STEVEN
There’s a fine balance to maintain, between the “zero balance” not-for-profit and the “highly profitable” not-for-profit based on yearly balances. I don’t think Molly’s argument was “ridiculous” at all since I don’t think she meant to argue her extreme over yours.
DV, great work the last few weeks. I love the fact that the suits at the BB are glued to your page, hitting refresh. They only wish they could have a healthy dialog like this on their weakass site.
pjmh
Traffic on THE PLANET is busier than Stockbridge is this weekend, and you will need a shoehorn if you wish to visit Sunday.
DV, in re: Berkshire Health Systems, Inc. and its sheltered assets in the Cayman Islands:
According to the Cayman Islands Monetary Authority, Berkshire Indemnity Company SPC, Ltd. (a BHS, Inc. subsidiary) is licensed in the Cayman Islands as:
“Entity type: Insurance Unrestricted Class B”
“License. No. 2401” granted April 1st, 2003.
It thus appears that Berkshire Indemnity Company, SPC, Ltd. is what is known in industry parlance as a ‘captive’ insurance company. According to CaptiveInsuranceCompanies.com,
“In its most simple form, a captive insurance company is an insurance company owned by the parent that underwrites the insurance needs of the parent’s operating subsidiaries.”
Link to: http://www.captiveinsurancecompanies.com/
Also please note that Guidestar.org doesn’t show any Berkshire Indemnity Co. in its massive database of IRS Form 990’s. This may indicate that Berkshire Indemnity is a ‘for-profit’ subsidiary of ‘not-for-profit’ parent, BHS, Inc..
DV, as you recall, the alleged BHS, Inc.-‘insider’ calling himself ‘Steven Colbert’, did not go into any detail when he admitted “BHS shelters some assets in the Cayman Islands ….”
Link to PV: //planetvalenti.com/2011/12/anatomy-of-a-non-profits-tax-filing-or-why-the-heck-does-berkshire-health-systems-have-financial-holdings-in-the-tax-haven-cayman-islands/comment-page-1/#comment-44978
What the prickly and plainly-abusive-when-challenged ‘Steven Colbert’ repeatedly fails to explain when asked is: Why is there a need for a tax-exempt, not-for-profit organization like his to shelter anything in a place with laws guaranteeing near total lack of transparency? Of just what is BHS, Inc. afraid, and why not redirect to Massachusetts the substantial sums of money it takes annually to maintain this artifice of BHS, Inc.’s Cayman Islands shield when BHS, Inc. could just as easily operate its captive insurance unit in Berkshire County under Mass. state regulations governing insurance carriers?
Also concerning ‘Steven Colbert’s’ comment: To which specific BHS, Inc. assets does he refer? In theory, because Berkshire Health Indemnity, SPC, Ltd. is underwriting the insurance needs of BHS, Inc.’s operating subsidiaries, that could mean ALL assets under the BHS, Inc. umbrella are sheltered in the Caymans, meaning everything belonging to all the BHS, Inc. operating subsidiaries and 100% of everything controlled by BHS, Inc..
RAY-O
We will let our good friend Mr. Colbert respond for himself, but you are 100% correct in your phrasing of the bottom-line question re: the BHS holdings in the Caymans: “Why is there a need for a tax-exempt, not-for-profit organization like his to shelter anything in a place with laws guaranteeing near total lack of transparency?”
Steverino thinks you are Glen Heller. Answer for yourself: Are you? or Are you not? It makes not difference to THE PLANET, since, RAY-O, you are posting material that is advancing the discussion and debate.
DV, recommend you check your server logs and you’ll notice that yours truly posts from Massachusetts, whereas the ubiquitous Topix poster ‘HellerCarbon’ posts from Mc Lean Virginia. But let ‘Steven Colbert’ think whatever he likes, because by consistently dissembling, redirecting, and spinning, he’s showing exactly who he is, along with his obvious contempt for his audience. Why can’t he just be plainspoken and honest — especially since he’s the one who’s chosen to post anonymously using a nom-de-plume? There’s an arrogance that shows through his non-answers and reflects character. SC says he’s a BHS, Inc. insider. I believe it. Who else would know so much proprietary detail about the Berkshire Radiological Associates matter? (A lot of what SC spoke of was NEVER reported in the BB back then.) And if he truly is an insider, then he’s actually doing everyone a service because he’s revealing exactly the kind of insincere mindset at work running this outfit, and whether SC or David Phelps or whoever it is wants to admit it or not, there’s a sense in the county the dice are loaded totally in BHS, Inc.’s favor regardless of whether the result is positive or negative for the county. The Berkshire Radiological Associates deal was a red flag to the entire business and medical community that BHS, Inc. will destroy anyone intending to compete in Berkshire County and will do so not via the marketplace, but instead using political muscle. The whole thing left a bad taste in a lot of mouths. The Berkshire’s lost what likely would’ve been a good clinic, a good alternative to BHS, Inc., the jobs that would have necessitated being filled, along with a lot of doctors and their families many of whom had little alternative then but to move on. Is it any wonder there’s now a shortage of primary doctors in Berkshire County? Who wants to deal with a political heavyweight which also has the advantage of being tax-exempt? DV, this insidious unwillingness by those who run BHS, Inc. to allow the organization to be held up to the light is the key. If these people have nothing to hide, why the hell all the effort to avoid answering your questions (which do not seem to be posed maliciously)? Why every time the fancy two-step shuffle redirecting discussion to matters with zero relevance? For-profit GE’s tax shelters; BHS, Inc.’s PILOT payment to Pittsfield (payment in lieu of taxes); Williams College’s investments; Jack Welch; c’mon, it’s all non-topic drivel! It’s not as if BHS, Inc. is a publicly-traded company where if the CEO misspeaks the stock price goes down and shareholders sue. So why all the smoke and mirrors at BHS, Inc.? Why the fancy footwork and the softshoe shuffle every time anyone asks a straightforward question?
But what does a Yankee cracker like me know?
Odd that you, a guy named after a second rate battery company, is accusing me of not being genuine because I have an alias, which happens to be much more clever than your own.
As to your comment that I am David Phelps, let me issue the following news release, so that Dan can see I’ve issued one declaring once and for all who I am not…
December 5, 2011
For Immediate Release
COLBERT SAYS HE IS NOT PHELPS
Pittsfield, MA – Steven Colbert, the pre-eminent blogger who makes the most common sense on Planet Valenti, announced today he is not David Phelps, president of Berkshire Health Systems.
“I am not he and he is not me,” said Colbert. “When I look in the mirror, I do not see David Phelps. When he looks in the mirror, he does not see Steven Colbert. And to use one of Dan Valenti’s phrases, to the best of our knowledge, neither of us has been diagnosed with schizophrenia.”
“It is my sincere hope that this formal statement will end this speculation on the part of my AAA battery friend once and for all,” Colbert went on to say. “I am also clearly not the Steven Colbert who is on Comedy Central, since I don’t want to be sued, though I do watch his show with regularity and find it to be filled with much more truthiness than Planet Valenti.”
THE PLANET thanks Mr. Colbert for this clarification. We think he is better looking than David Phelps, by the way.
Okay, time to address Dan’s favorite word in regard to BHS… monopoly. Now, Dan, as an expert in the English language, should know that it is defined as… A monopoly (from Greek monos / μονος (alone or single) + polein / πωλειν (to sell)) exists when a specific person or enterprise is the only supplier of a particular commodity.
Please note the words “only supplier” of a particular commodity. The commodity in question is healthcare in the Berkshires. I will of course grant that BHS through its hospitals is the “primary” provider of services, but I think “only” is a stretch big enough to cover the space underneath the Colossus of Rhodes’ legs (who doesn’t like a 7 Wonders of the Ancient World reference).
The following services are provided locally by private practices: Primary Care (and I agree it is awfully tough to be a primary care doctor these days, but most are in private practice not owned by BHS), Orthopaedic surgery, General Surgery (yes, the surgeons use the hospital’s ORs and Crane Center – I wonder why, oh yeah, the hospital paid for the huge investment to build them), eye surgery (guys on Williams Street seem to actually be a monopoly, don’t they), ear, nose and throat, endoscopy services, rheumatology, infectious disease, dentistry, occupational health, rehabilitation (several rehab centers are out there), dermatology, gastroenterology, endocrinology, hematology/oncology (hmmm… another monopoly on Dan Fox Drive), OB/GYN, pediatrics… this is getting tiring all this typing…
Oh wait, forgot one… laboratory, QWEST has a major presence locally and in fact, aren’t they in the very building Spectrum wants to go into????????? Why yes, they are! Talk about a smoking gun!
So, please Dan, tell me how BHS controls all of those medical specialties in the county when they are not employed by BHS. Yes, BHS does have its own small band of surgeons, but nowhere near the size of Berkshire Surgical, and they do have primary care docs, but again, most are not BHS affiliated. Oh wait, VNA services… BHS has one, but there are a multitude of others in the county.
Again I say that I fully agree BHS is the primary provider of care, as it owns two of the three county hospitals and therefore has operating rooms, inpatient facilities, etc., but BHS is hardly a monopoly by any definition, or at least any accurate definition.
OH STEVE (SPOKEN LIKE LAuRA PETRIE, WHEN, EXASPERATED, SHE SAYS “Oh, Rob!)
As Ronnie Reagan told Walter Mondale in 1984, “There you go again.” Quibbling on technicalities. Technically, you are correct. BHS is not a strictly defined “monopoly,” which we can define as “the exclusive possession or control of the supply of trade in a commodity or service.” We agree again, miracle of miracles. Now comes the big H-O-W-E-V-E-R.
However … in effect, in terms of the 27 companies of the BHS Empire, even allowing that some of them might exist only as shell companies to hide assets in the Caymans or on the moon, BHS is the 900-pound gorilla of regional healthcare. You know that. I know that. Joe Pinhead knows that. Molly knows that. You guys sneeze, and everyone else in the business catches cold. BHS can make or break the “competition” by many means. Despite your beautiful spin job on the Berkshire Radiological Associates saga, bottom line is that BHS crushes a competitive threat by calling up a local legislator and, voila!, said legislator delivers Thanksgiving early. Next thing you know, BRA is out of business, and BHS makes out like Jed Clampett. The BHS Empire wields considerable political muscle. Not even you can deny that. It is not hesitant to use that muscle for its benefit. We can go on an on, but the hour is late, and we have just returned from a lovely night of dining with dear friends. Your euphemism for “monopoly” — “BHS is the primary provider of care” — would be worthy of hanging up at the Rockwell Museum with an expensive frame job if it weren’t so inelegant.
Look for THE PLANET PARTY tomorrow on TV, live from Foxboro, Patriots side, 50-yard line. Hope you have a great Sunday!
How many of the private practice physicians in Berkshire County have practicing rights at BMC? Just because a doctor isn’t affiliated on the door to their office doesn’t mean there isn’t a financial arrangement with the hospital for rights to practice, particularly for surgeons.
Stop shaking your head, because it will give you a headache and then you’ll need to go and see one of those physicians who is not affiliated with BHS. As indicated before, the majority of physicians in the county practice in private practice – they have their own offices, their own staff. Yes, if you’re a surgeon, you obtain privileges at the hospital so that you can use the OR for your surgeries. Otherwise, how do you practice? There are no other ORs out there, are there?
Physicians obtain privileges at hospitals so that they can also admit patients, as needed, but this does not mean there is a payback. When a patient has surgery, the insurance company will pay both the surgeon, for his or her work, and the hospital, for its facilities, anesthesia care and any inpatient admission that may follow, if that’s the case.
There is nothing misleading about this.
Glad you finally looked up what monopoly means, Dan.
By the way, the vast majority of those “shell companies” you list are called nursing homes, operated and owned by BHCS in other parts of the state and in Pennsylvania and Ohio. BHCS owns and operates long-term care facilities in the Berkshires, across the state (like in Bourne, Danvers, Peabody, Northampton, Greenfield, etc.) and one each in Ohio and PA.
Refer yourself back to Gus and his comments. Seem pretty valid to me.
Gee, Steven, the “vast majority” of those “shell companies” are nursing homes. Guess not all of them, though, right. So how many BHS companies, then, are actual shell companies.
Steve, you are starting to resemble a shell of your former shell.
My eyes are getting tired from all this back and forth!!! However Steven makes the most sense to me, most knowledgeable, and wins the debate hands down. Didn’t know about QWEST on Summer St What is it????
Steven is doing nothing but “spinning” everything – he is in no way answering the important questions that have been raised here. For instance, instead of answering why BHS is hiding money in the Cayman Islands, he merely offers that Williams College and Mass. General Hospital are hiding more money than BHS is. That’s not winning a debate – that’s “spinning”.
QWEST is a blood-draw business – not sure if it is them that does the actual testing of the blood, but pretty sure they do. I didn’t know they had a station on Summer Street, either.
I cant stay out of this any longer. I’ve been reading all the planet’s postings and all of the comments. My verdict: Planet 1, bhs 0. Molly puts it best. All Steven Colbert is doing is spinning. I love the way he has dodged answering Dan’s simple quetions for example the nature of the assets of bhs in the Caymans Islands. In a debate when you spin, you lose. When you don’t spin, you win. Dan has everyone for lunch who is unfortunate to try to match wits . Molly and Joe Pinhead have also topped Mr. colbert on the facts. they don’t spin. Sorry Steven. Love your show though.
QWEST is a lab business and is in competition with BMC and other hospital labs here and around the country. Seems odd that Dan and Company prefer to ignore that aspect of this whole story. But as I’ve pointed out, Dan doesn’t know what a monopoly is, so…
No, Steven, it is not odd. Nor is it odd that you continue to use irrelevancies to take us off the trail of the real story. Again, you are using a technicality to dispute our claim that BHS has a monopolistic hold over the healthcare business in Berkshire County. If it does not, then the rhetorical definitions of that word have to be rewritten. As a wordsmith, you should know that words have two definitions. There is a literal or dictionary definition (the denotation) and the emotional or associative definition (the connotation). Denotively, BHS is not a “monopoly.” Connotatively, it sure as heck is. You know it, too, but you are bound to take marching order from whoever it is approves your statements.
Which leads to a question: Do you have to run your statements as “Steven Colbert” by anyone else at BHS? Or do you post them entirely on your own?
And speaking of Berkshire Health System, Inc.’s ‘captive’ insurance subsidiary licensed in the Cayman Islands (aka Berkshire Health Indemnity Company, SPC, Ltd.):
John Rogers, Esq., Vice President & General Counsel, Berkshire Health System, was a featured speaker at a conference held last February in Boston. The topic of discussion: “A Massachusetts Appellate court decision of December 2010 indicated that a captive insurance company formed for the purposes of ‘self insuring’ the risks of its parent organization is indeed engaged in the “business of insurance” and therefore, subject to certain statutes of the Commonwealth of Massachusetts. An appeal has been filed with the Massachusetts Supreme Judicial Court, but in the meantime, many captive owners are concerned that this is the beginning of a slippery slope of state regulation.”
Link to: http://www.integrogroup.com/data/Newsletter/2.16.11%20Invitation%20for%20Healthcare%20Roundtable.pdf
—————
John Rogers, who lives in Lenox and who, according to information contained in a 2005 Series F Tax-Exempt Bond issue mailout, “oversees the insurance and risk management programs of both Berkshire Health Systems and Berkshire Healthcare Systems” certainly knows whereof he speaks. He was BHS, Inc.’s featured speaker at an industry conference called ‘Cayman Captive Forum’ held in the Cayman Islands in Dec. 2009. Rogers spoke on the topic of ‘Compliance Rules’.
Link to: Cayman Captive Forum agenda:
http://www.imac.ky/index.php?q=node/38
DV, recommend you read IN FULL the cited PDF pages in re the Bond issue. There’s an organizational chart and all kinds of heretofore not generally known BHS-related information discussed including the convoluted relationship between Berkshire Health Systems, Inc. and Berkshire Healthcare Systems, Inc. (what appears to be a shell game including BHS, Inc.’s ‘captive’ Cayman Islands insurance unit).
By the way, BHS, Inc. farms out day-to-day operations of that Cayman ‘captive’ to a third party, Aon Insurance Managers (Cayman), Ltd.
Read and learn how these professional chefs really cook.
Incidentally, there may in fact be two BHS, Inc.-related insurance subsidiaries, since BHS, Inc.-owned ‘Berkshire Insurance Company SPC Ltd.’ is also named in documents.
Link to: Series F Tax-Exempt Bond Issue documentation: PDF pgs. 31 – 35 & 58 – 59.
http://archives.lib.state.ma.us/bitstream/handle/2452/37322/ocm86129297.pdf?sequence=1
Mr. Colbert:
I see you did not have the opportunity to address the concerns I raised late last night in my reply to your post. If you should get the opportunity to do so I would also respectfully request that you please help me understand a few other issues.
For example you repeatedly used as example the fact that other institutions used either the Payment in lieu of taxes (pilot) or donation method to address the services used and overall impact upon the community. Could you please define in a round number the donation made to the City of Pittsfield? Could you estimate the cost of the property taxes on BHS if they were not a tax exempt entity? To be fair if property taxes could have been say $1,000,000 and the “donation” was 100,000 we could then define for ourselves sizeable. As you know size is relative to the compared item not unto itself.
Fully admitting I am not a tax expert I have to question is there an advantage to making a donation vs. say a pilot payment? Donation deduction greater than a tax payment? Or property values not assessed etc. Just wondering. As you brought it up I am sure you must be aware of the PILOT vs. Donation issue that was raging in Boston a few years ago. And while the Institutions were publically claiming large donations as opposed to PILOT payments when the books were examined it wasn’t exactly like that. I’m sure that you are aware of the issue but for the edification of anyone who is following along I will post a link. I’m not commenting one way or the other just presenting some information more is always better.
http://www.upiu.com/business/2010/06/03/In-lieu-of-taxes-a-donation-system-for-Bostons-non-profits/UPIU-7601275556246/
In your reply post to me regarding the Disproportionate-Share case that BHS joined with I believe 5 other Health care institutions you accurately state that the case was dismissed. Could you provide a link where we might read the dismissal? I am just wondering the manner of dismissal and the written conclusion if any.
Examples of dismissal and there uses vary dependent upon conclusions. You stated that BHS just wanted to be on record opposing the reimbursements, not being a Lawyer or ever playing one on TV I would have thought filing a “Friend of” or some other type of brief to conjoin the case. As I stated I’m not a lawyer but I believe the term is called a JOINDER or more accurately a Joinder of Action.
The type of dismissal would be nice to know as I stated above the type can be used to better understand both the strength of the case and to a degree the thoughts of the parties.
http://legal-dictionary.thefreedictionary.com/Dismissal
The above link is for legal definition of dismissal using the Federal rules of Civil procedure, not being 100% certain where or how the case was filed I elected this link as a reference only for educational purposes. Please not the case would have been a civil procedure.
And we could also better understand the healthcare process and its reimbursements. “We” could actually lobby our elected reps in a more meaningful educated manner on either side of the issue. It would be kind of like a community service to provide that case to us.
Also you made the statement that BRA was self referring the patients with the best insurance to themselves. If this is in fact true did BHS initiate, notify or inform the proper agencies of this illegal conduct? Or did they turn a blind eye? Term illegal based upon violation of the Stark amendments 1 &2 that I appended a link to yesterday.
Oh I’m sorry one last item I was hoping you could help me understand. Let’s say that today I have Blue cross and Blue Shield insurance. And I have an attack of appendicitis. Being I am fully covered and enjoying the insurance coverage would BCBS enjoy what is commonly referred to as negotiated Rates? Example the insurance company says we will do business with you but we will only pay xxx for this procedure and based upon the volume with that insurer a mutually agreeable number is determined. Now let’s say I change jobs and find myself or my company is self insured would I pay the same rate or more than the costs discussed previous example? In generic terms so we can all understand.
Once again thank you for all your time and trouble and I do hope your team wins tomorrow.
Just sayin
🙂
PS Thanks Molly I hope it works
RE-CAP AS BEST AS I CAN REMEMBER IT, ALONG WITH STILL OUTSTANDING ISSUES
*Note: since much of this is very important to this city, and for the people just now jumping on this site and trying to catch up by reading the literally hundreds of posts (many of the people sent here by me), I thought I’d give a “monarch notes” version for these folks.
– Spectrum Health Services applied for permits with the City of Pittsfield to open up a Meth Clinic on Summer Street LAST JUNE but NOTHING was reported about this until Spectrum sued the City of Pittsfield and the court date was the same day as the first article in the BB. So right there was a big huge flag waving and likely lots of behind the scene and closed door meetings, deals/politics, etc., going on here. And it was obvious that yet again, Ruberto gave the order to The Eagle to keep its mouth shut and again, they did. Nobody wanted it reported that while our wonderful mayor was spending his time and our tax payer’s money on funding Spice and the Cinema, he wasn’t paying attention to what was really going on Pittsfield, and the downtown, and got caught with his pants down with the current zoning laws that would allow a Meth Clinic and a Suboxone Clinic in downtown.
– It was then reported that Spectrum told of its meetings with Ruberto, et al, in which Ruberto was FURIOUS about this and told them that this clinic would open “over his dead body”. Comments ranged from Pittsfield needs to get their collective heads out of the sand and acknowledge that Pittsfield has a HUGE drug problem and start doing something about it, that North Street is ALREADY filled with drug dealers and crime, to we don’t want/need a Meth Clinic in downtown Pittsfield to draw the drug users, dealers and crime.
– Then, my illustrious Councilman Krol (who recently won his election UNAPPOSED but still not with my vote), filed a petition to change the zoning ordinance regarding the regulation of both Meth Clinics and Suboxone Clinics by defining them, prohibiting them from downtown, and requiring a special permit to be located anywhere else in Pittsfield. Yet it seems no one knew that there was already a Suboxone clinic right in the midst of downtown and has been there for over a year now? And also the Brein Center not far away and the BHS-run McGee unit. And NOW they are going to prohibit it? Caught with sleeping on the job yet again.
– Then it was discovered that the attorney for the City of Pittsfield is a Trustee and Officer of Berkshire Health Systems (BHS). Then the question came up as to why Mr. Krol was submitting this petition. Didn’t he used to work for BHS? Perhaps BHS is against this as it could take away from their monopoly and be competition to them. And BHS has been very “heavy handed” in the past when competition to them was tried, for example, the Radiology business that was opened in the old Central Tractor building on North Street that BMC/BHS had basically shut down.
– Apparently, via both conversations and emails between Dan Valenti and Councilman Krol, Krol denied having any connection to BHS – no, he never worked for them, he used to work for BHCS but NOT BHS. Wellllll, if you work for BHCS, then you work for BHS, just like if you work for BMC, you work for BHS – BHS is the parent company and David Phelps heads up them all. This blatant lie brought on a LOT of speculation, accusations, theories, and controversies. Perhaps it was then the discovery of just who makes up the Board of Directors of BHS (a good portion are members of the “good old boy network” that really runs Pittsfield regardless of who we elect). Which brought on further investigation from the bloggers of Planet Valenti who found that BHS owns/oversees a total of 26 different corporations, and also has accounts in a tax shielding foreign country, namely the Cayman Islands. Why would a “Non-Profit Charity Organization” who doesn’t pay taxes (except employee SS & Medicare) need to hide income in the Cayman Islands to get around paying taxes? A true “non-profit” should NOT have that kind of income to hide! That’s when “Steven Colbert” (who very obviously is either David Phelps or one of his right-hand men) suddenly appeared here to put the “spin” on, and to discount such unfounded speculation and rumors. Which really wasn’t very difficult for him to do as a lot of it was, sadly, speculation, rumors, conjecture and leaping to conclusions. However, it certainly was and is very good to “ask these questions” as for sure we won’t see that happening ANYWHERE else. But, it would also be a good thing for BHS to actually ANSWER the questions instead of “spinning” and making statements that Williams College and Mass General are worse than BHS in hiding money in foreign country’s banks. Although interesting and ripe for some future conversations and debate on tax shelters, it really doesn’t even come close to answering the simple question – why is BHS hiding money in the Cayman Islands? Honest answers to some of the earlier questions would also go a long way. So BHS, please stop “spinning” and start answering the questions that are being asked here. Once you do so honestly, then the speculation, rumors, conjecture and leaping to conclusions will stop. Until then, they just won’t go away as your trying to spin everything just furthers people’s beliefs that there must be something that you’re trying very hard to hide.
Then Mr. Joe Pinhead (I call him Mr. Joe Patriot as he is sure not a Pinhead), came up with a truly excellent idea of having an electronic town meeting that would be hosted on planetvalenti.com. Dan Valenti agreed and hopefully this is something that can be brought to fruition soon.
Have I forgotten/missed any important points?
🙂
Molly, There is something missing Steve Colbert never answered Joe’s rebutal. I was following that exchange and am thinking that Colbert has to get those issues addressed on Monday and needs to colaborate first. I’m stumped for any other reasoning. He answered other conversations during the day.
Molly:
Great recap the electronic town hall meeting will happen, planning it now. I also thank you for the kind words. The only thing missing now is what day this week does the bb publish a story that is glowing about BHS? Its being worked on I would bet on that one
🙂
🙂 So glad to hear that the Electronic Town Meeting will happen. That’s awesome. So are you taking bets on what day this week the glowing bhs article will appear? Any odds to give us? I think that I’ll take Tuesday… 🙂
Joe Pinhead you took the words right outta my mouth, I’m thinking, Ok the Boring Braodsheet (BB) will be putting in a big page one story on how BHS helps little old ladies cross the street, knits slippers for toddlers and brushes its teeth three times a day. i find it amazing that the BB hasn’t touched this story except to run a bunch of bs and fluff about the meth petition, what do you think, Joe P, you seem on top of thse issues. What do you think of how the BB has covered this story and in gen’l covered the city with issues like school department, GE PCbs, and otehrs covered here as the only media outlet to have the stone. Like Molly says I too am appreciatve of this forum. Sorry to ramble.
I believe this whole thing is intellectually over the heads of anyone at or in control of the Eagle. Any attempt to spin it risks making it much worse. (but I pray they try)
Mr Colbert has made it worse just by his glaring avoidance of certain repeated questions.
I am fascinated to find out we have local people who actually care about such things. Thought the whole town was just willing to roll over in front of the machine
The Eagle’s article on Adam Hall today actually asked some tough questions I was almost impressed.
It must be Valenti influence and the planet’s, they never show interest in any hardball questions…but Scott I’ll believe it when I see them take up this story the way the planet has. To Dusty yes me too. I believe we have lots of local people who care about not wanting to roll over and play dead in front of the machine, wheter its GE, BhS, the GOBs etc. This story and the overwhelming comments prove that. There are plenty of good folks decent, honest who are sick of the bhs b.s./ Hope electronic town hall happens for this issue and many more
I’ve been wondering what the DA’s office has done to the BB as this article was SO “out of character” for the BB!!! Perhaps the BB isn’t being kept in the loop on the grimy details of this case? Something… for sure!
I agree Scott, that article had some teeth to it for sure. Kudos to Ned Oliver and the editors of the Eagle for getting it to print
It was a good article as far as it went, but what it lacked was any background information on murder suspect Hall himself. Other than that Hall resides in Peru, is/was the enforcer for the local branch of Hell’s Angels Motor Club, and that he’s not adverse to using extreme violence to get his way, the rest of his background is being kept a mystery so far. Who are Hall’s parents and where are they now? Do family members have comments on the present charges? Are there any siblings? Are/were the parents employed locally and where? Were cops ever called to the Hall residence when Hall as a boy was growing up, and if so, why? Did the young Hall go to local schools and did he have a history of any violence growing up? This kind of self-destructive behavior doesn’t spring from nowhere.
RAY O
I did not read the BB’s coverage.
I would encourage a followup, based on the type of questions you ask here.
In fairness to the BB, however, often a story cannot be told in one installment. In that case, I hope the newspaper pursues the story. I would also point out that, unlike the physical newspaper, their online version contains no physical limitations. Good newspapers take advantage of this characteristic of the Internet, and they will give readers inducement for turning to its website to learn more details that the print edition doesn’t run. I haven’t read the BB online version. Perhaps they have your questions answered there.
Mr. Rex
First I have to say to all on this site who participated in the discussion, whether your read comments, posted to the discussion yourself etc. I like Dusty am happy to see that there is a level of engagement and a fair, open and honest desire-a quest to take part in guiding the community- in shaping itself regarding an issue. The level of discussion is (was) of a level that should demonstrate to our elected and appointed officials that “we” the people need to be seen for more than some sort of never ending “funding source” The questions asked were intelligent respectful and on target.
Tying this into another issue which I don’t want to do per-se but the question was asked by Mr. Rex of me. We just had an election for third district rep, the reason that the Eagle (in my opinion) has not and will not cover these issue in this depth is simply this; Do you think that Ms. Farley-Bouvair or any of the other elected officials are willing to enter into a discussion when they do not have a grasp on the issues, the facts or the pulse of the community?
Think back a few months ago when the school Building needs commission and the City Council fought so desperately to keep the question regarding the proposed new school off the ballot. If I recall correctly they wanted to be sure the public wasn’t confused on the issue. Please read the past few days worth of blogs I bet it is over the heads of the Councilors, and the editors and they fear the publics ability to out research, them and their inability to answer the questions that would develop. This past discussion proves we the people have the intellect as well as the ability to have a meaningful dialog.
We learned here not in the BB that the School Building needs Commission returned to the School department their work product as being incomplete in part to the lack of public participation.
The fact that the Council could say that the issue would confuse the voters says volumes for the official position regarding the paper. Read that comment as …we do not have faith in the daily to accurately report and explain with context to the voters thus enabling them to make a wise decision.
The other issues you mention Mr. Rex are essentially the same for the BB, Imagine the resources they would have to invest in to bring us this information. The more we learn the more they would have to invest (time wise) .
And for all those who seem to be concerned about Mr. Ovac or any of the other posters, he has a birth right to participate in these discussions if you don’t like his opinion fine if you like it fine as well he has advanced and contributed information in what I would consider a meaningful way. I bet they count his tax dollars at city hall.
That’s why I wouldn’t look for any other entity than the planet to continue the dialog on any given issue.
Just sayin
😉
Molly youve unleashed a monster
I don’t want to introduce yet another hot topic issue, but am mentioning it solely as an example that truly, our own Council members/elected officials and the Berkshire Eagle do not have a thorough understanding of MANY things. What I’m specifically referring to is last year’s property tax increase which, when you actually did the math on the % of increase (vs. just taking the BBs word on it), was something like a 6.97% increase on personal property taxes and for Commercial property, the increase was 5.24%. I wondered what in heck happened to Prop. 2 ½? So I started asking our elected officials and NOT ONE OF THEM KNEW THE ANSWER!!! They just regurgitated what the BB had said. So I did my own homework on just how Prop. 2 1/2 works and it is much different than what I believe the taxpayers thought they were voting for way back then. It’s a somewhat complicated formula based on a “levy ceiling” and a “levy limit” along with what these have been in previous years.
My point is that I could not find anyone among our city’s elected officials who understood it, and not one could/would explain it to me — and in addition, neither could the BB. So I explained it to them. I was just AMAZED!!! These were the people who were voting on this and they just trusted that it somehow must be legal for them to do as the City Lawyer and Mayor had requested this amount and some even out and out said that! I thought “OH MY GOD” – this is very scary!!!”
Again, this is just one example. After reading these comments from JP, I was reminded of just how irritated I get when our public officials treat the citizens like they are idiots and then it dawned on me that perhaps that’s not it at all. Perhaps it’s that they are the idiots that don’t have a lot of knowledge, or at least a willingness to do their own homework and hence their non-answers to issues/topics is merely a reflection of their own ignorance.
MOLLY
Again, great post
Molly:
Great post and I am with you 100% the entire prop 2 ½ has been in my humble opinion misunderstood and misconstrued by our City Council for years and they like it that way. Hopefully there will be a blog regarding it here on the planet or yet another idea for an electronic town hall meeting.
Another issue I waited until this evening to bring up is Does anyone know where Councilor White works? I know at one time he was a case manager at the Brien center. With all the hub bub regarding Councilor Krol there was no mention of Mr. White and his connection if it still exists to a known competitor of any future clinic. If he is still employed there has he requested an opinion regarding his ability to participate in the discussion? I missed the meeting that darn work stuff was in the way. Did he recues himself? Did he announce any connection with a clinic?
Just sayin
I have had the formula explained to me a few times as well, because I couldn’t see how taxes could go up over 2 and a half with town approval. For the benefit of viewers of this site Molly, would you attempt to explain it?
DV, in re: Berkshire Health Systems, Inc. and its sheltered assets in the Cayman Islands:
According to the Cayman Islands Monetary Authority, Berkshire Indemnity Company SPC, Ltd. (a BHS, Inc. subsidiary) is licensed in the Cayman Islands as:
“Entity type: Insurance Unrestricted Class B”
“License. No. 2401″ granted April 1st, 2003.
It thus appears that Berkshire Indemnity Company, SPC, Ltd. is what is known in industry parlance as a ‘captive’ insurance company. According to CaptiveInsuranceCompanies.com,
“In its most simple form, a captive insurance company is an insurance company owned by the parent that underwrites the insurance needs of the parent’s operating subsidiaries.”
Also please note that Guidestar.org doesn’t show any Berkshire Indemnity Co. in its massive database of IRS Form 990′s. This may indicate that Berkshire Indemnity is a ‘for-profit’ subsidiary of ‘not-for-profit’ parent, BHS, Inc..
DV, as you recall, the alleged BHS, Inc.-’insider’ calling himself ‘Steven Colbert’, did not go into any detail when he admitted “BHS shelters some assets in the Cayman Islands ….”
What the prickly and plainly-abusive-when-challenged ‘Steven Colbert’ repeatedly fails to explain when asked is: Why is there a need for a tax-exempt, not-for-profit organization like his to shelter anything in a place with laws guaranteeing near total lack of transparency? Of just what is BHS, Inc. afraid, and why not redirect to Massachusetts the substantial sums of money it takes annually to maintain this artifice of BHS, Inc.’s Cayman Islands shield when BHS, Inc. could just as easily operate its captive insurance unit in Berkshire County under Mass. state regulations governing insurance carriers?
Also concerning ‘Steven Colbert’s’ comment: To which specific BHS, Inc. assets does he refer? In theory, because Berkshire Health Indemnity, SPC, Ltd. is underwriting the insurance needs of BHS, Inc.’s operating subsidiaries, that could mean ALL assets under the BHS, Inc. umbrella are sheltered in the Caymans, meaning everything belonging to all the BHS, Inc. operating subsidiaries and 100% of everything controlled by BHS, Inc..
Link to Cayman Islands Monetary Authority; PDF Pg.5:
http://www.cimoney.com.ky/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=2076
Link to: http://www.captiveinsurancecompanies.com/
Link to PV: //planetvalenti.com/2011/12/anatomy-of-a-non-profits-tax-filing-or-why-the-heck-does-berkshire-health-systems-have-financial-holdings-in-the-tax-haven-cayman-islands/comment-page-1/#comment-44978
Personally, I don’t give a damn if it’s Heller or not. As far as I know, or care, it’s Ray Ovac, who I sometimes agree with and sometimes don’t. The last I knew, this country still had “freedom of speech” and that freedom is applied to all. If everyone did not have that right, I would’ve been petitioning to have you and your consistently negative and down-putting remarks shut down. Not everyone agrees on everything on this site, which makes for very interesting debates. But most everyone disagrees with respect. Why do you have such a problem with that? Thank you, in advance, for your respectful reply.
I don’t think it is Heller. Heller has a certain nastiness about him that I don’t believe he could consistently restrain. Ray Ovac is both intelligent and diplomatic.
I think so too it’s not GH. Ray O is a gentleman.
DV, recommend you check your server logs and you’ll notice that yours truly posts from Massachusetts, whereas the ubiquitous Topix poster ‘HellerCarbon’ posts from Mc Lean Virginia. But let ‘Steven Colbert’ think whatever he likes, because by consistently dissembling, redirecting, and spinning, he’s showing exactly who he is, along with his obvious contempt for his audience. Why can’t he just be plainspoken and honest — especially since he’s the one who’s chosen to post anonymously using a nom-de-plume? There’s an arrogance that shows through his non-answers and reflects character. SC says he’s a BHS, Inc. insider. I believe it. Who else would know so much proprietary detail about the Berkshire Radiological Associates matter? (A lot of what SC spoke of was NEVER reported in the BB back then.) And if he truly is an insider, then he’s actually doing everyone a service because he’s revealing exactly the kind of insincere mindset at work running this outfit, and whether SC or David Phelps or whoever it is wants to admit it or not, there’s a sense in the county the dice are loaded totally in BHS, Inc.’s favor regardless of whether the result is positive or negative for the county. The Berkshire Radiological Associates deal was a red flag to the entire business and medical community that BHS, Inc. will destroy anyone intending to compete in Berkshire County and will do so not via the marketplace, but instead using political muscle. The whole thing left a bad taste in a lot of mouths. The Berkshire’s lost what likely would’ve been a good clinic, a good alternative to BHS, Inc., the jobs that would have necessitated being filled, along with a lot of doctors and their families many of whom had little alternative then but to move on. Is it any wonder there’s now a shortage of primary doctors in Berkshire County? Who wants to deal with a political heavyweight which also has the advantage of being tax-exempt? DV, this insidious unwillingness by those who run BHS, Inc. to allow the organization to be held up to the light is the key. If these people have nothing to hide, why the hell all the effort to avoid answering your questions (which do not seem to be posed maliciously)? Why every time the fancy two-step shuffle redirecting discussion to matters with zero relevance? For-profit GE’s tax shelters; BHS, Inc.’s PILOT payment to Pittsfield (payment in lieu of taxes); Williams College’s investments; Jack Welch; c’mon, it’s all non-topic drivel! It’s not as if BHS, Inc. is a publicly-traded company where if the CEO misspeaks the stock price goes down and shareholders sue. So why all the smoke and mirrors at BHS, Inc.? Why the fancy footwork and the softshoe shuffle every time anyone asks a straightforward question? —-
But what does a Yankee cracker like me know?
I was using the comparison to Williams and Baystate because they are a direct comparison, Ray (or Glenn, still haven’t seen the formal press release from Dan declaring you’re not Heller). All are private, not-for-profit entities. All have investments in the Caribbean and elsewhere, as does Mass. General, another private not-for-profit. And again, you love looking at those IRS 990s, so please check them for all Massachusetts hospitals, so we can compare apples to apples.
The GE references were initially made to show that the “man of the little people” seems to have a lot of ties, both now and in the past, to a business model that makes BHS look like a Mom & Pop store from the 1940’s. GE paid no taxes last year, that would be none, nada, zip, zero, all while making hundreds of billions in pure profit. Sorry for the next comparison, but it’s true – if BHS were a GE subsidiary, it would have been closed or sold many years ago. GE doesn’t like companies that have a measly 1% operating margin. Ask the guys who used to work for GE Plastics, now known as Sabic, since GE dumped their sorry cash-poor butts.
Dan seems to find that to be just fine, since he’s still on the payroll writing speeches for Immelt.
And again, as others have pointed out – this entire thread began because some of you accused BHS of being behind the opposition to the methadone clinic. It isn’t. The rest is just smoke and mirrors. Nothing you have found or pointed out is illegal, and if as Gus said Baystate and other hospitals use the Caymans for their self-insured models, what exactly is the big brouhaha?
By the way, Ray, I prefer Energizer or Duracell… heck, I think CVS brand is better than Rayovac. Time for you to be recharged.
STEVEN
Ooops. We caught you in a Big One.
You’re spinning more than The Four Tops, my good friend.
The Williams, Baystate, and GE references are a direct comparison but they are not relevant. It’s like Coach Belichick, going into yesterday’s game, kept getting asked about the previous (and still) winless Colts. He kept repeating, to the point of exasperation, that what the Colts did to go 0-11 has ZERO relevance to Sunday’s match up. As issue is trying to understand the structure of the massive BHS holdings in health care here in the U.S. and the Cayman Islands. We think the more people know about how healthcare works, the better we all are.
Then you write: “[Dan’s] still on the [GE] payroll writing speeches for Immelt.” What is your source for this ludicrous claim, which you have made appear as a factual claim?
You are right: this began with questions surrounding the petition on a meth clinic, filed by a city councilor. The councilor is a former employer of BHS. Interesting connection. That led to other questions and other revelations, such as the details posted by BHS in its tax filings. I don’t think anyone accused BHS of being behind the meth clinic. They were asking if it might be. You have denied it? We have learned that denials from company spokespersons to be generally reliable. You will also understand our need to verify. There are many ways to make a claim that is technically valid but not substantially true. See today’s post. There are three simple questions for you. Consider them an invitation to respond.
As always, we thank you for helping us tell the complete story.
Dan, does Europolis Management do work for GE But not Dan Valenti? Just asking.
STEVE
Europolis Management is a privately held company, owned by THE PLANET. We do not reveal information that is proprietary to our business. The day we go public and look for investors, should that day ever come, we shall have full disclosure.
I don’t know anything about Berkshire Health Systems but i am confused that DV and Ray have discovered that BHS is hiding assets from the IRS by looking at a form that BHS filed with the IRS. I know that Baystate (where i used to work) and almost every other hospital in Massachusetts and most in the country have stopped buying liability insurance from insurance companies and set up bank accounts to pay for claims. Baystate and the other hospitals that self-insure find this a better way to help patients who have been injured. In order to keep that money from being used for other purposes and to keep hospitals from violating state laws that control typical “insurance” companies, funds to pay liability claims by self insurers are usually manage outside any state. Most hospitals in the country use the Cayman Islands for that purpose because the Cayman Islands insurance regulators have had three decades of experience with US healthcare companies. In Baystate’s experience, almost all of the money to pay for claims is in the US. The money that is in the Cayman Islands is only a few thousand dollars for operating the self-insurance program. That is how Baystate’s program works and I bet BHS’s does too.
I think that there’s a limit or cap of $20,000 in a malpractice lawsuit against a ‘not for profit’ hospital in MA.
Too many people are talking here about things they know-nothing about,nor have no facts to back them up etc. Oh well makes for good fiction reading
CONCERNED
The only people talking about things they know nothing about, as Molly has pointed out, are the elected officials and the Boring Broadsheet. You can’t find them here, for the most part. The people who have posted such as Joe Pinhead, Molly, and Ray Ovac have helped THE PLANET tell a story that the BB, elected officials, and GOBs have tried to keep hidden at the behest of (on order from?) BHS. On a lighter note, though, Happy Birthday to you!! <3
Concerned – are you questioning the accuracy of the $20,000 malpractice lawsuit cap for “non-profit” hospitals? Don’t be confused – the cap is only on the “non profit HOSPITALS in MA and not on the individual doctors. In any case, the following is a cut & paste from just one of MANY links that are available giving this info:
“Charitable immunity is a principle that grants to non-profit, tax exempt corporations, protection from personal injury lawsuits. In a common variation on complete immunity, legislatures create limits or “caps” on judgments against the charities. While the organizations can be sued, there is a statutory limit on the amount of money that can be recovered against them. In Massachusetts, that limit is twenty thousand dollars. In other words, regardless of the enormity of the corporation’s negligence, and even if a jury awards a person injured due to that negligence, millions of dollars, the award will be automatically reduced to twenty thousand.” From the following link:
http://www.margolinlaw.com/lawyer-attorney-1508575.html
DV I just don’t see it, but respect you all for your information. And on a lighter note also Happy belated Birthday to you also.
CONCERNED
We send much love from VILLA VALENTI!
Dan, since you know what you’re talking about, help me out. What do you think you’ve discovered? I read the whole post, most of the comments. I don’t get it. Can you give me a sentence or a paragraph explaining the wrong, or potential wrong, you believe is being perpetrated?
Joe P:
According to Peter White’s “LinkedIn” page, he lists his employment as:
Program Coordinator Hamlin Street Reach Out and Employment Services programs at The Brien Center
For the past, he lists:
Member at Pittsfield Parade Committee
Direct Care Education Specialist at The Brien Center
Direct Care Specialist at The Brien Center
Organizing Campaign Coordinator at Berkshire Brigades
Campaign Manager at Municipal Election Peter Marchetti for Council
I as well missed the meeting – was out of town, so can’t help you on that, but I’m sure there’s lots of people on here who can fill us both in!
So glad that we found you a “like” and “dislike” button!! 🙂
Molly I’m not question anyone here. I just don’t get where is this going and why. It started with a meth clinic (that I oppose ) and now BMC is on trial ???
Now that Joe P has somewhat of a “like” and “dislike” button, I have a new request – the ability to see what new comments have been added. For lengthy discussions like this one (130 comments and counting), and people Replying to comments that were posted early on, it’s not easy to keep going through and finding the new posts/replies! Sorry DV – now I’ll be bugging you and whining about this! And yes, I’d like some cheese with my whine, too! 🙂
🙂
RSS real simple syndication on the post not page level
Molly i was thinking the same thing I want cheese with the whine as well. But ut would make the site a bit more user friendly.
Just sayin
🙂
MOLLY, JP, and EVERYONE
THE PLANET will try to keep up with the latest developments on this and other stories. We appreciate your contributions to this.
ANDY
See Molly’s recap of this story. That’s the best we can give you, if you don’t grasp the issues from the stories and comments themselves.
We have heard from many people by phone, email, US Post, carrier pigeon, smoke signals, and other means. There is a response to this story because people have actually begun to examine the position of BHS re: healthcare in the community, its monopolistic position thereof, its curious holdings (as a “non-profit” company) of holdings in the Cayman Islands (the destination of choice to hide assets from the IRS), and the fact that so many honest, middle class people in Pittsfield — who don’t have the benefit of insider access — are struggling. In fact, these are the people who are supporting the tax-free status of the hugely wealthy BHS.
A place to start, and we will make this as simple as we can.
TO BHS: Please reveal the complete information on your holdings in the Cayman Islands. In the name of We The People, we demand full disclosure. Tell us what you got there, how much, and why.
Simple as that.
DV, you write “TO BHS: Please reveal the complete information on your holdings in the Cayman Islands. ….. Tell us what you got there, how much, and why.”
DV, recommend you include within that request “any and all assets sheltered”.
Gus, you write above “…….Baystate and the other hospitals that self-insure find this a better way to help patients who have been injured. In order to keep that money from being used for other purposes and to keep hospitals from violating state laws that control typical “insurance” companies, funds to pay liability claims by self insurers are usually manage outside any state. Most hospitals in the country use the Cayman Islands for that purpose because the Cayman Islands insurance regulators have had three decades of experience with US healthcare companies. …….”
All I can say, Gus, is ‘Wow’. You honestly believe that by establishing an insurance subsidiary licensed in the Cayman Islands (the laws of which are specifically designed to shield and protect the insurance carrier and the hospital from liability and from nosy plaintiffs’ lawyers), that this is done as “a better way to help patients who have been injured”? Oh really? Better for whom? You actually think US consumers are better protected by Cayman Island laws and regulations than by US state and federal laws? Also, you think it’s somehow a good idea and better for the patient for US hospitals to go outside US legal jurisdiction “to keep hospitals from violating state laws that control typical ‘insurance’ companies”. Excuse me, ‘Gus’, but don’t a whole bunch of those state and federal laws and regulations contain language specifically geared to protect the US patient/consumer and his rights of redress in case of malpractice? Why would you advocate for any mechanism by which a hospital could circumvent those specific US laws designed to protect the patient/consumer? How does it benefit a patient in a US hospital (or his heirs) to have to sue outside the USA if the hospital has screwed the patient or if the hospital’s Caymen Islands insurance subsidiary arbitrarily limits payment of damages to the patient?
Gus, you claim above that “Most hospitals in the country use the Cayman Islands for that purpose because the Cayman Islands insurance regulators have had three decades of experience with US healthcare companies.” Gee, three decades. Gus, which is better for the US patient, Cayman Islands insurance regulators’ “three decades of experience with US healthcare companies” or US state and federal regulators more than 200 years experience with US healthcare companies?
So what’s the next step occupy BHS???
Occupy BHS? Can’t do that; it’s run by a Democrat operative (David E. Phelps) formerly second-in-command at Democrat National Committee headquarters in Washington DC. Picketing organizations run by and controlled by connected Democrats is not politically-correct behavior, especially in Massachusetts. On the other hand, there probably are some health care organizations run by Republicans with which we could fix up your Occupy protesters.
Well I don’t think you guys see it but there are similarities to the OCW movement and what you folks are talking about here. Also a google search of Phelp’s name will show you political contributions to both parties on his behalf. I am not for or against the movement I’m just saying.
whats going on here, non profits paying the higher ups huge dollars and the folks who do the work peanuts!… if ever there is a time to occupy some thing this is it. there are too many non profits that profit and have to hide their wealth so the cayman isles is were they go. loop holes and slick lawyers keep these people from paying their taxes ,so now they have to hide the money instead of giving the working people more to ease their life….wow!!!!! who would have thought people do these things in the health care buisness. lol
its kind of funny, if you talk to phelps and the others at contract time at bmc, they will tell you the folks make too much money as it is and they have to jack up prices because of it. its the game of more for them and less for the people who actually do the work.
@ Councilor Krol, could you explain why you removed the “underwritten by Berkshire Health Systems” from the bottom of your web page, http://www.goodmorningpittsfield.com ?? Dare you respond for all Planet Valenti’s viewers to see?? I saw it on Friday and then checked back today and viloa…it magically disappeared, care to explain?
I think the lesson to take from this discussion is that hospitals are very complicated organizations. I’d like to point out that even if an organization is tax exempt, that doesn’t mean that they are exempt from property taxes for the property they own. I’d imagine that any payment BMC makes to the City is a ‘wink wink, nod nod” to not have an actual tax appraisal completed for the real and personal property within its holdings. If it truly is 100% tax exempt, then why are they giving any moent to the City? that money should be used to improve care and public health for the broader community, not balance a municipal budget.
Good point.
Lenox Softworks also is shown as a sponsor of http://www.goodmorningpittsfield.com Isn’t that where my Councilor, Mike Ward, works?? Mike, you read this site, do you do the upkeep on this website for Councilor Krol? If so, did you remove the Underwritten by BHS logo at the bottom of the page? And if so, at who’s request and why?