UMC Quick Cares at issue in government enterprise debate

Thursday, Jan. 24, 2002 | 11:16 a.m.

CARSON CITY -- University Medical Center Quick Cares in Las Vegas were the primary target during a meeting Wednesday of a legislative study subcommittee studying competition between government and private enterprise.

Private hospital executives testified that UMC has an unfair competitive advantage in operating the walk-in medical offices.

William Hale, chief executive of UMC, has called the hospital's 14 Quick Cares an essential cornerstone of the public hospital's solvency. The Quick Cares bring in about $9 million in referrals each year, which means the hospital can rely less on taxpayer funding, Hale said.

Allan Stipe, president and chief executive officer for Sunrise Hospital and Medical Center, told the Subcommittee to Study Competition Between Local Governments and Private Enterprises that the Quick Cares lost $12 million last year, but because they referred patients to the hospital, UMC gained $20 million, resulting in an $8 million overall profit, he said.

Greg Griffin, chief executive officer for Fremont Medical Center, complained that the Quick Cares charge $71 per visit, losing an average of about $25 loss on each patient. He called that "predatory pricing," which private industry can't match.

Also testifying was Larry Preston, president of Pinnacle Medical Management.

Sen. Mike Schneider, D-Las Vegas, chairman of the subcommittee, defended UMC. The hospital, he said, was losing $15 million a year and "kept coming to the taxpayers."

He said government agencies are told to act like a business. "Now they are acting like a business, and they are not losing money. The taxpayer is not losing money now, and the public is getting cheaper care.

"The taxpayers are really winning here," he said.

Sen. Ann O'Connell, R-Las Vegas, complained that Schneider was "talking about socialized medicine." She said physicians at the county hospitals get medical malpractice insurance coverage, but those in the private sector must pay for it.

Residents also benefit from the locations of the Quick Cares, one county official said.

Assistant Clark County Manager Mike Alastuey said six of the 14 UMC Quick Cares are in "high needs areas" and, as a county hospital, UMC was the "point of treatment of last resort" for people who can't pay. This, he said, translates into higher losses.

Private hospitals, he said, have an advantage in this area. Since the Sept. 11 tragedy, he said the number of non-paying patients has risen from 7 to 11 percent.

Kami Dempsey of the 6,800-member Las Vegas Chamber of Commerce told the subcommittee that "public entities should not get involved with the private market."

"The more the government serves as a business, the less tax that is produced," she said. And private business is put at an unfair disadvantage, Dempsey said.

There were other examples Wednesday.

Phil Stout, executive director of the Nevada Association on Independent Business, complained that the city of Henderson was considering expanding its convention operations. But he said there was ample room for conventions at the nearby Sam's Town hotel-casino on the Boulder Highway.

The subcommittee will develop recommendations to present to the 2003 Legislature.