Editorial: A hospital in denial

Tuesday, Dec. 12, 2006 | 7:13 a.m.

Having been reprimanded for entering into a flawed contract that resulted in a $6 million drop in revenue, officials at the county-run University Medical Center last month were once again ready to sign a contract that didn't include standard language that would protect the county, as reported by Tony Cook in Friday's Las Vegas Sun.

Mary-Anne Miller, the Clark County Commission's attorney, called the contract with Hospitalist Medicine Physicians to provide physicians for the hospital "unusual" because it was without "a real standard provision" - a termination clause, which would allow the hospital to cancel the contract if the company failed to live up to the deal. UMC officials called it an oversight, but given the way the hospital has operated recently, it looks to be part of a disturbing pattern of missteps.

In September UMC was criticized by the county auditor for entering into a contract with ACS Consulting to collect overdue bills. Billed as a pay-for-performance deal, flaws in the contract led to a first-year revenue drop of $6 million for UMC, although the company earned $1 million in fees. The contract also did not have a termination clause.

Until last month, hospital officials failed to give commissioners monthly financial statements for six months because, they said, of a new computer system installed in the fall of 2005. However, in May the hospital had given commissioners January's financial statement. Last month the hospital revealed that it had lost more than $6 million beyond its expected loss.

While the amount of the additional loss is bothersome, the fact that there is red ink isn't too surprising - a public hospital that treats all regardless of ability to pay will often lose money. What is disturbing is the way hospital officials have kept the county and the public in the dark. Officials at the hospital have rebuffed the Sun's requests for documents regarding one of the contracts, which is baffling considering they are public documents held by a public agency.

The hospital has shown it does not like inquiries or oversight, which it desperately needs. County commissioners need to step in and demand greater scrutiny of UMC's contracts, a better accounting of the hospital's finances and more openness on the part of UMC officials.

As Commissioner Tom Collins put it, "There needs to be more light shining on the hospital." We think that would be a good start.