Capitol Fax.com - Your Illinois News Radar » The rest of the story
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
The rest of the story

Friday, Jun 1, 2012 - Posted by Rich Miller

* Reporters often write only about what they see, or what they want to see. Here’s a standard article

The Illinois Hospital Association took no chances as state lawmakers debated in recent weeks whether nonprofit hospitals should pay property taxes. It unleashed a self-described media blitz.

“My baby is sick — anyone help, please!” screamed an actress portraying a mother in radio ads aired in Chicago and 41 other markets starting in early May. A baby wailed, an ambulance siren blared and a voiceover asked what the terrified parent would do if no hospital were around.

The blitz worked. The Illinois General Assembly this week handed hospitals a long-sought victory: a sweeping legislative antidote to a recent state Supreme Court decision that threatened to slap many hospitals with potentially millions of dollars in tax liabilities just as they say they’re struggling to survive.

The radio ads worked? That was what passed the bill? OK. Or maybe it was the ad the IHA bought here. That seems more likely, actually, because legislators and staff actually saw that one. But, whatever. Ads weren’t the only factor highlighted in the story…

The association, representing about 200 hospitals and health systems, urged Illinoisans to write to state officials. By this week, the IHA reported, more than 12,000 people had signed an online petition. The group created templates for member hospitals to customize anti-tax e-mails to legislators and letters to local newspaper editors. And it suggested members provide kiosks or special computers for workers to send notes condemning property taxes for hospitals and Quinn’s proposed $2.7 billion in reductions to projected Medicaid payments.

An online petition worked? Well, maybe. I’m not sure how many legislators actually saw it, though. And then, of course, there was this…

For 2011 and the first quarter of 2012, the association contributed about $397,000 to state office holders, candidates and the state Democratic Party, according to the Illinois Campaign for Political Reform, a watchdog group. That included $143,000 to legislative leaders of both parties and $198,000 to other lawmakers in the General Assembly.

The IHA gave even more than that in 2010: $725,089.56. It has a very active, very aggressive political organization.

* But there’s more to this story. Hospitals are in every legislative district. And hospital boards are usually made up of the region’s biggest bigshots, who are accustomed to hob-knobbing with local politicos. Hospitals are also large employers, and their workers usually earn pretty good salaries. They are almost always involved with local charitable causes, spend big money on public relations and they advertise heavily in local media. As a result, they’re the most trusted institutions in almost every region. Crossing them ain’t easy.

The IHA lost its top lobbyist and political guru when Howard Peters retired. It recently hired AJ Wilhelmi right out of the state Senate. Wilhelmi had never been a lobbyist before, but he worked like a dog. He returned one of my calls after midnight one evening, waking me up.

Add all that up and it’s no great feat to figure out why they did pretty well this year. They almost always do.

That’s not to say they’re right all the time. They used to constantly battle with nurses in Springfield. Those fights hurt them. And getting crossways with the attorney general has had many downsides. She was right to question their level of charity care. Some of what they classified as charity was just silly PR.

* And they’ve been one of the most aggressive bill collectors of any industry, prompting legislation to clamp down on entities that seek to put people in jail for not paying a bill. From a press release…

Attorney General Lisa Madigan today applauded state lawmakers for supporting the Debtors’ Rights Act of 2012, a measure that would protect poor people from being jailed over unpaid debts.

House Bill 5434 would prevent creditors from abusing the court system to put debtors in jail to collect on a debt they are clearly unable to pay. Over the last year, Madigan has learned that residents in roughly a third of Illinois’ counties commonly face incarceration when they fail to appear in court over a previously entered judgment to pay a debt. In many of these cases, notices of court hearings were mailed to addresses that were no longer valid, leaving many debtors unaware of the hearings. In spite of the failure to notify the debtors, courts have frequently issued warrants for their arrests.

“Long ago, our society recognized that it was immoral to send a poor person to debtor’s prison. Yet this practice has reappeared in Illinois through creditors’ abuse of the courts,” Madigan said. “This legislation will ensure that people who have the means will pay their debts, while also preventing poor older and unemployed persons from being illegally and unfairly incarcerated.”

Compounding the problem, Madigan said, is that many victims of these practices are living solely on income that is legally protected from being used to pay outstanding debt judgments, including Social Security, unemployment insurance or veterans’ benefits.

Madigan’s legislation would also ban abusive and burdensome “pay or appear” orders that are routinely entered against debtors in some Illinois counties. These orders – which usually remain in effect for three years – require debtors to make a monthly payment or appear in court each month to explain why they are unable to pay, even if their financial circumstances have not improved. Madigan said if a debtor misses just one payment and court hearing, they can end up in jail. Debtors who have been victim to this practice typically owe outstanding medical bills, credit card debts or payday loans.

The legislation would amend the Code of Civil Procedure to codify and clarify practices followed by attorneys, creditors and courts across Illinois to ensure that courts make a finding of a consumer’s ability to pay before entering a payment order. The legislation also would prohibit payment orders that rely on legally protected income and prevent arrest warrants from being issued unless the debtor was personally served with a hearing notice.

The combination of mandated free care (pushed by AG Madigan) and the attorney general’s debtor protection bill were not hospital “wins.” But like all smart organizations, they recognized that getting what they wanted required giving up something else. So, they agreed to a scaled back (but still significant) Medicaid rate cut and they accepted the attorney general’s demands. That’s an optimal conclusion for pretty much everybody.

       

7 Comments
  1. - I'm Just Saying - Friday, Jun 1, 12 @ 1:03 pm:

    Thanks Rich, You’re like a Regular Old Paul Harvey, And Now, The Resssssssssst of The Story :)


  2. - PublicServant - Friday, Jun 1, 12 @ 1:42 pm:

    Actually Rich, as is plainly obvious by my often heated and some would say partisan (Schnorf) point of view, I’m not a lobbyist. I’m a partisan, because pension changes affect my family. So, this thread hit home for me in that I hope my personal, and admittedly partisan, remarks didn’t cause the pension steamroller to be worse than it otherwise would have been. I tend to think that even when you said in one thread a couple of weeks ago that now is the time to offer alternatives because you’re about to get steamrolled, that it was already to late, but I understand now really how things work. Hospitals are big. They have money. They know powerful people, that hob-nob with powerful legislators. Even then they can’t have everything they want, but they, in the end, get pretty close to everything. No so with the non-big and non-monied.


  3. - Team Sleep - Friday, Jun 1, 12 @ 1:45 pm:

    Another side of the rubicon is that the IHA is right to question legislators and advocates who push for better access to care and want hospitals to expand charity care and then want to slash payments to the same hospitals that are supposed to keep up with the wishes of said advocates.


  4. - zatoichi - Friday, Jun 1, 12 @ 2:14 pm:

    So what happens to the property tax issues of the other non-profits in every local community? Hospitals have the bucks and the constitution specifically exempts schools and churches from property taxes. Do the B/G clubs, mental health, day programs, drug/alcohol, youth camp, Salvation Army, food banks, child care, residential providers, and many other 501c3s get the same consideration when their property tax exemption is questioned by local taxing authorities looking to make up financial shortages? These groups do not have the same dollars, may not be the biggest employer, and usually serve a select portion of the community that the local ‘biggest bigshots’ may not be directly involved with. Doesn’t happen? Talk with the local mental health center in Johnson County who lost their property tax exemption.


  5. - amalia - Friday, Jun 1, 12 @ 2:31 pm:

    the hospital with which I am all too familiar does a fantastic job of community outreach and a range of free services. I’m glad to see a resolution because I was not happy to see any threat to the services provided when the particular hospitals were name in the discussion. and I’m especially happy because hospitals which engage in developing new protocols for difficult health problems, which support scientists who literally develop new ways to save lives, are invaluable to the State of Illinois.


  6. - Bemused - Friday, Jun 1, 12 @ 3:20 pm:

    Useing Hospital ERs and Charity care as a pressure relief valve will only work so long. There is a cost for everything and in this case the cost is passed along to those with healthcare insurance via higher costs for services and higher insurance premiums. So far that has worked for those involved.

    The problem is this causes a downward spiral of the percent of the population with health insurance.

    It tends to go like this. Company A is a long time local employer. They try to do the right thing for their employees but still have to compete in the marketplace. They have provided health insurance to their workforce for a long time. Now they compete with Company B which does not supply health ins. With a cost in the range of say 5-7 bucks per Hour per worker that puts A at a serious disadvantage. So Company A feels the need to either drop said coverage or pass it on to the worker who may feel they can’t afford it either.

    With fewer workers paying premiums and more Charity Care needing to be paid for, premiums go up and more Companys drop healthcare and so on and so forth. The present system does keep the masses from rising up with pitchforks but won’t work forever.

    Say what you will about “Obamacare” the cost will need to be spread across a larger pool. Those in the Medical field expect and deserve a paycheck at the end of the week. The money comes out of one pocket or another but it will come out.


  7. - chefjeff - Friday, Jun 1, 12 @ 3:57 pm:

    What happens to the property tax paid by Provena
    (Supreme Court test case) since 2002 when the dispute started. I believe it amounts to around a million dollars a year. Will the local schools, park district have to pay them back?


Sorry, comments for this post are now closed.


* Napo's campaign spending questioned
* Illinois react: Trump’s VP pick J.D. Vance
* Open thread
* Isabel’s morning briefing
* Live coverage
* Selected press releases (Live updates)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller