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Why Are Tax-Exempt Hospitals Getting Rich?

Friday, Jun 27, 2025 - Posted by Advertising Department

[The following is a paid advertisement.]

Across Illinois, big hospital systems and PBMs are abusing the 340B drug discount program – making massive profits while patients drown in medical bills. One whistleblower called it “laundering money.”

Here’s how the scam works: big hospitals buy discounted 340B drugs, bill patients full price, then split the difference with for-profit pharmacies and PBMs.

340B was meant to help Illinois communities in need. But there are no rules requiring hospitals and PBMs to pass savings on to patients. No transparency. No oversight. Just higher costs for working families, small businesses, and taxpayers.

Meanwhile, tax-exempt hospitals cash in – and PBMs get a cut too.

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It’s just a bill

Friday, Jun 27, 2025 - Posted by Isabel Miller

* During spring session, the House failed to pass one of Governor Pritzker’s priorities that would restricted the use of cellphones in classrooms. IPM Newsroom

Under Senate Bill 2427, each school district would create their own policy for banning cell phones in class by the start of the 2026 school year.

“In conversations with educators from around the state, there is one thing most commonly cited as an impediment to classroom learning: cell phones,” Pritzker said.

Pritzker cited a study from the Pew Research Center that found 72 percent of high school teachers say cell phones are a major problem in their classrooms.

Pritzker said students would be allowed to use smartphones in the classroom in certain circumstances, like if a student monitors a medical condition with their phone.

* Earlier this month, the Tribune took a closer look at why the bill didn’t pass

A coalition of Illinois House lawmakers blocked the [cellphone ban] measure when it came to the House late in the session over concerns about unequal disciplinary impacts, according to bill sponsor, Democratic state Rep. Michelle Mussman of Schaumburg.

Concerns about enforcement disproportionately affecting Black and brown students became more pronounced as lawmakers reviewed the phone restriction alongside another bill limiting police from ticketing students for minor misbehavior, according to Mussman. Legislators were hesitant to pass a statewide school mandate while also debating a measure meant to scale back school discipline practices, she said.

Rep. Curtis Tarver, a Chicago Democrat and a member of the Black caucus, told the Tribune in February he worried about the “unintended consequences” of a phone ban, including inequitable enforcement. […]

In the end, negotiations around the measure came down to a “dance” between ensuring local school boards had control over their own policies while also protecting students from “inequitably applied” policies, Mussman said. Moreover, representatives were unsure how to implement guidance on “how a phone might be returned if it was confiscated, or what to do if anything was lost or broken,” she added.

* Even so, Chalkbeat Chicago’s Samantha Smylie reported this week that sponsors say the bill isn’t completely dead

State Sen. Cristina Castro, the chief sponsor of the bill, said in an interview with Chalkbeat that she did not hear strong opposition to the bill, but believes the language of the bill needed some “fine-tuning.” […]

Bryen Johnson, director of political activities for the Illinois Federation of Teachers, one of the largest unions in the state, said the union generally supports the idea of removing cellphones from classrooms so students can remain focused on their lessons. But the union did not file a witness slip in support of the bill because of unanswered questions, including one regarding liability. […]

State Rep. Michelle Mussman, a House sponsor of the bill and chair of the House’s education policy committee, said in an email to Chalkbeat that lawmakers brought up several concerns such as access to phones in an emergency situation, who would be responsible if a phone was stolen or broken, and enforcement of a policy and whether it would be disproportionately applied to students of color.

Mussman said negotiations over the bill will continue over the summer. Castro says that she and Mussman are committed to getting the bill over the finish line. The bill could return during the fall veto session.

Thoughts?

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Open thread

Friday, Jun 27, 2025 - Posted by Rich Miller

* No song today because I want you to watch the absolute best sheep dog ever…


Nelson looks like Oscar when he was a little puppy.

* Please keep your comments Illinois-centric. Thanks.

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Isabel’s morning briefing

Friday, Jun 27, 2025 - Posted by Isabel Miller

* ICYMI: Pritzker hints at possible running mate in reelection bid during East Peoria stop. WGLT

    - After speaking to a crowd of supporters at the Workforce Sustainability Center at Illinois Central College in East Peoria, the two-term Democratic governor told a group of reporters who may be under consideration for his next choice for a running mate.

    - “There are some qualified people across the state. There’s one right behind me,” Pritzker said, a nod to state Rep. Jehan Gordon-Booth, a Peoria Democrat who serves as Assistant Majority Leader in the Illinois House and who introduced the governor at the rally.

    - “When you win, you gotta represent everybody and I know Jehan Gordon-Booth has done that in her job as state representative,” Pritzker said. “Who would not want Jehan Gordon-Booth as a leader in this state?”

* Related stories…

* The governor is wrapping up his statewide tour today with a 10:30 am stop at SWIC’s Manufacturing Training Academy in Belleville, followed by a 2 pm visit to IBEW Local 702 in West Frankfort.

*** Isabel’s Top Picks ***

* A City That Works | It’s time to start enforcing the rules on the CTA: Unsurprisingly, the CTA and City of Chicago’s approach to-date on this issue has been woeful. The CTA has spent more than $100M on unarmed security guards, who appear to be instructed not to confront bad behavior, and generally seem to stand around on their phones. And while the CTA is also paying for CPD overtime, sworn CPD officers on the Public Transportation Section are down by almost a third from 188 in May 2020 to 132 in May 2025. Communications are also woefully inadequate. There is still not a way to discreetly alert CTA or CPD personnel about an issue. In a fraught situation on a train, riders are expected to put themselves at risk by either calling 911 or pressing an emergency button and speaking to an operator via loudspeaker. Neither is a particularly appealing prospect while being trapped in a small metal can with someone who appears to be a threat to others.

* WBUR | Reverse Course: Life after the levee breach in Dogtooth Bend, Illinois: In 2016, the Mississippi River punched a hole in the Len Small levee, built to protect farmland along an S-shaped curve in the river known as Dogtooth Bend. That hole was never repaired. Here & Now’s Chris Bentley reports on how some farmers in the area have had to give up their land. And, John Ruskey calls the Mississippi River “a creative force” that sculpts the landscape and rejuvenates the people who experience it up close. But climate change is making that force stronger and more destructive. Bentley took a canoe ride with Ruskey and reports on the future of the river.

* NPR Illinois | Nursing home lobbying group director says possible cut to Medicaid is “deeply troubling”: Ron Nunziato is the senior director of policy for the Healthcare Council of Illinois. It’s a lobbying group whose members represent about 70 percent of the Medicaid occupied beds in the state. He said the uncertainty of how much federal funding the state will receive for Medicaid puts nursing home operators in a bind. “We don’t know what DC will do, and we don’t know how that will impact the state,” Nunziato said. “If they (Congress makes) cuts to Medicaid, the state could look at all Medicaid providers and make a cut to them,” he said. “They could take more from one pot than they do another. And so, it’s deeply troubling to us in this industry.”

*** Statehouse News ***

* CBS Chicago | AIDS Garden Chicago honors trailblazer and former Illinois Rep. Greg Harris: With just days left in Pride Month, AIDS Garden Chicago took the time Thursday to honor former Illinois state representative and longtime LGBTQ+ advocate Greg Harris. On Thursday afternoon, a plaque dedicated to Harris was unveiled at the entrance to the garden, located near the south end of Belmont Harbor. The space memorializes the early days of Chicago’s HIV/AIDS epidemic.

* Tribune | Apparently fake clemency letter for Gangster Disciples founder Larry Hoover sent to Gov. JB Pritzker: At first glance, the petition, which was stamped as received by the governor’s office on June 16, might seem to be a legitimate plea from Hoover himself, using similar language about atonement and redemption that the imprisoned gang leader has used in numerous previous requests for parole and clemency from the courts. But a closer inspection revealed some telltale signs that the document, first obtained by the Tribune through a public records request, is likely a fake. For one, it was purportedly sent June 5 from the “supermax” prison in Florence, Colorado, where Hoover, 74, had been housed for the past three decades. But Hoover had in fact been released from that facility days prior due to Trump’s clearing of his federal sentence on May 29.

* WEBQ | Windhorst Announces Re-election Run for 117th House District Seat: Windhorst has risen through the ranks of House Republican leadership to be selected House Republican Floor Leader, leading debate and holding liberal Democrats accountable for radical leftist legislation. “I have voted against legislation that restricts 2nd Amendment Rights, dangerous legislation that ends cash bail and punishes police officers, all measures that expand taxpayer-funded abortion services, and I’ve fought to end Illinois’ Sanctuary State law that has cost taxpayers billions,” Windhorst said. “Liberal Democrats have gone too far in pushing our state and country’s politics to the left, and I’m fighting back.”

*** Chicago ***

* The Triibe | Who’s behind those texts slamming Mayor Johnson and some progressive alders for their ‘snap curfew’ vote?: The texts are being sent out by the Urban Center PAC, a political action committee launched in 2024 by former Chicago Public Schools CEO and failed mayoral candidate Paul Vallas. Juan Rangel, a former Latiné charter school operator, leads the Urban Center PAC. He’s also the CEO of The Urban Center nonprofit.

* Tribune | Interim CPS chief Macquline King addresses first school board meeting, cites $730 million deficit as top priority: “Families, principals and teachers are counting on us to open schools in August with confidence and clarity,” King said. “I am committed to maintaining momentum and ensuring a smooth start to the school year.” King — who stepped into the position earlier this month — inherits a district long-underfunded by the state and plagued by years of financial woes. She previously served as the city’s senior director of educational policy.

* Sun-Times | Chicago cop who inadvertently shot and killed his partner has a lengthy disciplinary record in a short career: Since joining the Chicago Police Department in December 2021, Officer Carlos A. Baker has faced three suspensions and two reprimands, records show, one stemming from a complaint that he failed to arrest a home invader on his first shift working the street. […] During his probationary period, Baker also was accused of flashing a gun at a woman he’d met online while she was on a date with another man at a North Side bar. The woman later refused to cooperate with investigators, and Baker faced no discipline, records show.

* WTTW | Trump Administration Restores $1M in Frozen Anti-Terrorism Funds to Chicago, City Officials Announce:
But it is more likely that President Donald Trump’s decision to join Israel’s war with Iran prompted a reconsideration of the decision to freeze the funds, Richardson Lowry said. A bulletin issued Monday by the Department of Homeland Security warned “the ongoing Iran conflict is causing a heightened threat environment in the United States” and “the ongoing Israel-Iran conflict could contribute to US-based individuals plotting additional attacks.” Perhaps that warning “compelled them to revisit the notion of holding back funds that lend themselves to protecting citizenry throughout the United States,” Richardson Lowry said.

* Inside Climate News |How Do You Escape a Heat Wave When You Have Nowhere to Go?: Trivedi was one of a dozen Chicagoans seeking refuge at the Garfield Community Service Center, a resource hub doubling as one of the city’s designated cooling areas as the atmospheric heat dome encasing much of the country this week drove temperatures dangerously high. But the center would close at 5 that afternoon. Staffers there try to coordinate shelter beds for those who need them, but demand has been high. “You need to wait all the day and you’re not sure the beds are available or not available,” Trivedi said. Often, he ends up sleeping outside. He hoped he’d have more luck that night.

* Block Club | South Side Alderman’s Push To Rename West Chatham Park Backfires: ‘Mistakes Happen’: The process of renaming a South Side Park after Chicago Bulls star Derrick Rose — a suggestion that’s rankled some neighbors — appears to have unraveled before it even began. Ald. William Hall (6th), who initiated the renaming process, said he made a “clerical error” and has withdrawn his request to the Chicago Park District. […] “There was an error, and guess what? We’re human. And guess what? Mistakes happen,” Hall said at the meeting. “So in my interpretation of what I needed to do, I pushed the wrong button, and clearly it made little waves that it should not have made. But it’s good to know that we’re engaged.”

* Crain’s | New York firm buys distressed Wacker Drive tower at massive discount: A venture of Great Neck, N.Y.-based Kohan Retail Investment Group paid close to $45 million last week for the 65-story office tower at 311 S. Wacker Drive, according to sources familiar with the deal. The sale price for the 1.3 million-square-foot building is a staggering discount from the $302 million it traded for in 2014 to an affiliate of Chicago-based Zeller Realty Group and Chinese investor Cindat Capital Management.

* Crain’s | Indicted ex-Loretto exec pushes his health ventures — while facing a federal arrest warrant: Today, a press release purporting to be from Ahmed commented on “President Donald J. Trump’s recent remarks about conditions in Chicago,” saying Ahmed agreed there are “increasing concerns around public safety, homelessness, and the effectiveness of city-level policies.”The release also had Ahmed weighing in on sanctuary city policies and a call for “long-term, data-driven solutions and increased transparency in local decision-making.” It touts Ahmed’s involvement with reopening medical facilities and supporting job training and housing.

* Tribune | At Albizu High School, migrant grads confront a future shaped by US policy: Federal immigration crackdowns have cast an even longer shadow over their plans. Despite the staff at their high school encouraging them to carry themselves with dignity, their path after graduation remains unclear. Amid it all, Juan and his friends from Albizu — George Pérez Pedraza, also from Mexico, and Jhonnalber “Jupiter” Mejías-Monteverde, from Venezuela — have found comfort in each other. Over the past few months, they’ve shared calls over heartbreak, celebrated birthdays at the beach on Lake Michigan and dreamt of forming a band.

* Tribune | Chicago closes streets early to fix buckling pavement ahead of NASCAR race: On Wednesday evening, the city shut down Balbo Drive from Columbus Drive to Michigan Avenue, which was originally scheduled to close Friday. It also closed Columbus from Jackson Drive to Roosevelt Road — five days ahead of schedule — to allow work crews to repair the pavement buckle. The rest of the course is “holding up fine” and the street closings ahead of the July Fourth weekend race event will remain on schedule, a NASCAR spokesperson said Thursday.

* WGN | No fireworks in Chicago for Fourth of July holiday: Madeline Long, director of communication for the city’s Department of Cultural Affairs & Special Events, told WGN News last year that “as has been the case for several years, the City does not host fireworks for the July 4th holiday.” WGN News recently compiled a list of Fourth of July fireworks displays and festivities spanning the Chicagoland area. Readers may view the entire list by clicking here.

*** Cook County and Suburbs ***

* Injustice Watch | Family sues Cook County Sheriff Tom Dart over ‘brutal’ jail death: The 73-page suit filed last week in the Northern District of Illinois by the stepfather of Cory Ulmer, who was 41 when he died, accuses Dart of having a “pattern and practice of covering up or turning a blind eye to the use of excessive force.” An additional 30 county employees are named defendants in the lawsuit.

* Aurora Beacon-News | Kaneland School District files lawsuit against Sugar Grove over Crown development’s TIF district: According to an original proposal, 10% of the TIF funds were to go to the village for any improvements it needs to make in the area, but, in August, then-Sugar Grove Village President Jennifer Konen said Crown had agreed to give another 10% of the funds to be distributed among the other taxing bodies, of which Kaneland is expected to get $26 million. The original TIF agreement also included payments from TIF district funds to offset the cost of schooling for students living in the new housing at the development.

* ABC Chicago | South suburban property owner finally gets house back, says squatters lived in his home for months: “They left it an absolute mess,” Goodman said. “They’ve destroyed the house. It needs at least $25,000.” Goodman is glad that the family who moved into his property is gone, but he is not celebrating. “Why? Because now I need money to fix the house, and it’s going to take several months for me to put it on the market,” Goodman said.

* Shaw Local | Despite delays, Morrison hospital’s $14M expansion stays on budget and on track: Work on a $14 million two-story addition to Morrison Community Hospital continues despite slight delays. The project was expected to finish in January 2026, but Morrison Community Hospital CEO Pam Pfister said this week that utility work delays have pushed the completion date to May 2026.

* Crain’s | NU sued over suicide of scientist targeted in federal China probe: The estate of a Northwestern University professor who died last year is suing the school, blaming it in part for her decision to take her life after she was evicted from her lab and hospitalized following a government investigation of her and other Chinese American scientists. Jane Wu was a tenured faculty member at NU’s Feinberg School of Medicine in neurology, molecular biology and genetics. She and other scientists of Chinese descent were targeted by a Justice Department investigation known as the China Initiative during the first Trump administration that looked into undisclosed ties to Beijing.

* Daily Southtown | Art becomes part of the nature mission at Will County forest preserves: Throughout the year, the district’s visitors centers host exhibits of work by artists local and national, connecting people to nature in ways they may not have expected. “It’s another way of introducing our preserves and nature centers,” said Heather Van Zyl, facility supervisor for Plum Creek Nature Center in Crete Township. “There are visitors and community members who sometimes find their way to us for the first time because of an artist or an exhibition,” she explained. “They say, ‘Now that I know you’re here, I see all these trails and all these exhibits. I’m going to bring my family.’ … It can be a really great introduction.”

*** Downstate ***

* WGLT | ‘Outpouring of support’ for Humane Society in Normal after A/C breaks during heat wave: The organization said they now have enough fans and other supplies after donations poured in from Veterans Maintenance Solutions, R.P. Lumber Company, Home Depot, Meijer and individual community members. They urged those still wanting to help to make a monetary donation in the event that their air conditioning unit needs to be replaced.

* 25News Now | Peoria Mayor Rita Ali delivers 2025 State of the City Address: She said Peoria is in a strong financial position, where of its almost $275 million budget, the city has $136 million in reserves and more than $49 million in the general fund. “We continue to pay down our general obligation debt,” Ali said. “Fortunately, we don’t have the excessive financial shortfalls that many cities are currently experiencing.”

* WVIK | Illinois Housing Development Authority awards Aledo ten years of tax credits to fund housing project: Economic Growth Corporation President and CEO Brian Hollenback discusses the tax credits and what the century-old school redevelopment into housing will bring to the city of Aledo.

* Illinois Times | City Council has a tiff over TIFs: The Springfield City Council engaged in a heated debate Tuesday over grants for Tax Increment Financing (TIF) districts. Frustration mounted as supporters of the ordinances questioned why their fellow council members sought further discussion on this initiative but not others, suggesting that it came down to the demographics of those who would benefit from the money. TIF districts can be established by cities in areas that have been identified as economically stagnant or unlikely to attract private investment. TIFs are generally intended to revitalize those areas by funding public and private redevelopment projects and attracting private investment.

* 25News Now | Residents can text their city government through service coming to Pekin: The service, called “TextMyGov,” allows residents to send text messages to their local government and receive automated assistance 24/7. This will allow citizens to engage more with their city’s government and will help residents find information and report issues via text message. Residents will be able to access information using keywords such as “AGENDA” or “GARBAGE” and to report issues using keywords like “TREE DOWN” or “POTHOLE.”

* Illinois Times | Route 66: Monetizing the mother road: An exhibit of famed Route 66 nomad hippie artist Bob Waldmire’s work will open June 28 at the Pharmacy Gallery and Art Space and remain on display through December 2026. Then a quarter-mile stretch of original Route 66 concrete road at Carpenter Park will be uncovered and transformed into a trail with wayside exhibits, with a ribbon-cutting ceremony set for July 11. On the 100th birthday itself, a big bash will happen at Route 66 Motorheads Bar and Grill, with visits from what Springfield Convention and Visitors Bureau director Scott Dahl promises as “high-end” entertainment acts and other, yet-to-be-named dignitaries.

* 25News Now | Peoria Blues & Heritage Music Festival announces second round of artists: Taj Farrant, Buckwheat Zydeco Jr., Maurice John Vaughn with Freddie Dixon & John Watkins, FrankBang and Brandon Santini join the lineup, including Ruthie Foster. Rock legend Gov’t Mule, blues rocker ZZ Ward, and Tommy Castro & the Painkillers. The music festival is Aug. 29-30 along the Peoria Riverfront. The festival will feature late-night events at Kenny’s Westside Pub, local food, craft beer and art vendors.

*** National ***

* WaPo | Trump administration is preparing to challenge budget law, U.S. officials say: In both internal communications and interviews, more than two dozen current and former employees across multiple agencies said the administration appears to be readying to push the boundaries of the law meant to prevent the president from unilaterally overturning spending decisions made by Congress. Key White House aides have long argued that the law is an unconstitutional limit on presidential power and suggested that they will seek court rulings to overturn it, which could allow the White House to determine which spending to carry out.

* Wired | ‘They’re Not Breathing’: Inside the Chaos of ICE Detention Center 911 Calls: A WIRED investigation into 911 calls from 10 of the nation’s largest immigration detention centers found that serious medical incidents are rising at many of the sites. The data, obtained through public records requests, show that at least 60 percent of the centers analyzed had reported serious pregnancy complications, suicide attempts, or sexual assault allegations. Since January, these 10 facilities have collectively placed nearly 400 emergency calls. Nearly 50 of those have involved potential cardiac episodes, 26 referenced seizures, and 17 reported head injuries. Seven calls described suicide attempts or self-harm, including overdoses and hangings. Six others involved allegations of sexual abuse—including at least one case logged as “staff on detainee.”

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Protected: SUBSCRIBERS ONLY - Supplement to today’s edition

Friday, Jun 27, 2025 - Posted by Rich Miller

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Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Friday, Jun 27, 2025 - Posted by Rich Miller

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Selected press releases (Live updates)

Friday, Jun 27, 2025 - Posted by Isabel Miller

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Live coverage

Friday, Jun 27, 2025 - Posted by Isabel Miller

* Click here and/or here to follow breaking news. Hopefully, enough reporters and news outlets migrate to BlueSky so we can hopefully resume live-posting.

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PREVIOUS POSTS »
* Why Are Tax-Exempt Hospitals Getting Rich?
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* SUBSCRIBERS ONLY - Supplement to today’s edition
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