Columnist Jon Ralston: Brace for war against hospitals

Friday, Jan. 4, 2002 | 4:52 a.m.

It has all the elements: A business no one wants to do business with. Out-of-state corporations making millions here. And almost zero political support at any level.

As then-Gov. Richard Bryan found out in 1987 -- and it is no coincidence that the man with the most in-tune political antennae in recent Nevada annals also latched onto the power issue during his career -- Las Vegas' private hospitals community is a target-rich environment. And as I told you just over a month ago, a potent coalition that marries the most politically influential labor and management groups in the valley is about to open a new front against the hospitals.

On Tuesday the Hospital Services Purchasing Coalition (could they have come up with a less catchy name?) will hold its first news conference to set the stage for what could be a protracted and ugly campaign that will surely draw many politicians and candidates into the fray.

The coalition has unions -- firefighters, cops, trade professionals, Teamsters, teachers and, of course, the Culinary. In fact, president of the Culinary's parent union and a possible future head of the national AFL-CIO, John Wilhelm, is expected to attend the news conference.

The coalition also has gamers -- MGM MIRAGE, Park Place Entertainment and Mandalay Resort Group are among those involved. I think those casino companies have a tiny bit of political muscle in the state.

In fact, the group, whose members represent 320,000 insured folks, wants to apply pressure to hospitals with whom they have been unable to sign contracts, which expired the first of the year but roll over to Feb. 1.

The political backdrop could not be more scenic. In the wake of Sept. 11, you have all these displaced workers and struggling families. So what happens if any of them need hospital care? Those bills, piled on top of their other financial burdens ... well, you get the point.

And then there are the hospitals themselves. They are owned by out-of-state corporations --- HCA Inc., Tenet, Universal -- who contribute little to political campaigns and don't appear to be hurting. Nashville-based HCA, for instance, had a $4.4 billion increase in revenues in the third quarter of last year while Santa Barbara-based Tenet announced last week that it expects to exceed Wall Street expectations by 5 percent, according to Reuters.

This is a dream issue for politicians, who need the coalition members for their campaign sustenance and can spew rhetorical venom at Tennessee and California companies (and Universal is based in Pennsylvania) with impunity.

Bryan knew that in 1987 when his hospital cost-containment crusade became the jumping-off point for his U.S. Senate bid the next year. And Gov. Kenny Guinn surely will have no qualms about jumping on board (don't worry, Sen. Reid, I don't think Guinn wants to follow the Bryan path to the Potomac), as will many other pols seeking easy headlines and currying favor with the coalition members.

The coalition surely will make the point that Bryan's cost-containment law has been allowed to expire and it won't take much for them to get politicians (hello, Gov. Guinn and any current or wannabe member of the Gang of 63) to suggest it should be revived. It will hardly be like extracting a bicuspid:

Coalition to politician: "How about new legislation if those greedy hospitals won't sign better contracts?"

Politician (saliva dripping): "Can I, can I, please, can I be the main sponsor?"

Imagine the synergy between this issue and the looming energy crisis.

Politicians will be falling over each other to be toughest on the utility and the hospitals. It could be a long year for the damage control division over at R&R Partners, which represents both Nevada Power and Sunrise Hospital, the HCA jewel that was a favorite Bryan target.

As with the power issue, too, truth will be the first casualty in the coming war against the hospitals. But demagoguery pays, as any politicians will tell you, especially when the public is receptive, the target is this irresistible and an inarguable truth is encased within the rhetorical wrapping.