BLEEDING NEVADANS DRY
While UMC offers our state financial distress, could the SEIU be a culprit?
BY GEORGE HARRIS

George Harris is publisher of Liberty Watch: The Magazine. He is also a political activist and successful Southern Nevadan businessman. Reach Harris at gopgeorge@earthlink.net  Other stories by George Harris

What's currently happening at University Medical Center seems like something that could have come directly from one of Martin Scorsese's mob films.

On Jan. 16, police raided UMC with the suspicion that high-ranking executives were lying about the fiscal welfare of the hospital. CEO Lacy Thomas was fired and his office was searched for evidence that could prove he was withholding information from county officials and cutting sweetheart deals with his friend's companies back home in Chicago. Also under investigation are Chief Financial Officer Richard Powell and Chief Operations Officer Marlo Hodges. Both worked for Thomas at John H. Stroger Hospital of Cook County in Chicago. 

In November, Thomas went to the County Commission and stated the hospital took a financial hit of $18.8 million last year. And although the hospital budgeted for a loss of only $12 million, Thomas assured the Commission that the hospital was in no danger. How this didn't raise questions for the commissioners, I'll never know.

What's worse - and the reason for the investigation - is that that whopping $18.8 million was the only first chink in the armor. Outside auditors have come up with an actual figure of not $18.8 million, but $34.3 million in lost revenue. Police are looking into the deals Thomas cut with his pals back home and several Chicago companies that not only lack a business license to practice in Nevada, but Illinois as well. 

Former hospital executives who worked with Thomas were reported saying that these companies were awarded contracts without going through the proper channels to obtain work. And after hundreds of thousands of dollars were spent on these companies like Taylor Consulting Services, which collected $1 million before lifting a finger even though the contract stated it was paid on a performance basis.

Thomas has been at UMC's helm for the last three years since leaving Chicago. Over the last two, the hospital has lost more than $50 million. All of these consulting services Thomas recommended were supposed to help the hospital better manage its money. Therein rests the definition of irony.

County Manager Virginia Valentine said she "had concerns about his lack of transparency regarding the hospital's financial situation" moments after firing Thomas. Unfortunately, for the taxpayer, that's $50 million too late for concern.

George Stevens, the county's CFO said, "There will be a bail out." And guess where that bail out is coming from? Thomas isn't going to be fined the $50 million to put Southern Nevada's only public hospital back in the black. And the county certainly can't put $50 million into UMC's moth-ridden wallet. It's going to come right to the taxpayer. You will be paying for the oversight of the commissioners and the greed of half-crooked businessmen and women from Illinois. 

And what makes this almost laughable is that Thomas' friend Bill Taylor, who just so happens to own one of the questionable Chicago companies UMC did business with is playing the race card.

"If this man was white, this wouldn't be happening," Taylor said. "He's an African-American in a redneck state."

Maybe this is happening because Thomas is a bad businessman who got caught with his pants down. Ask Erin Kenny if Nevada is really racist against those who break the law? She's as white and blonde as they come. 

After the embarrassment of Operation G-Sting, you'd think people with decision making powers would watch their backs a little bit better. Many questions surface, considering the SEIU's dominant role with UMC and specific members (and ex-members) of the County Commission. Are there any empty "in-box" jobs? Is their an investigation going to take place about nepotism and again where was that Democrat-controlled County Commission? Inquiring minds want to know.

The taxpayers are tired of being represented by crooks and certainly shouldn't stand for cleaning up the crooks' mess with more tax dollars. As the new political season gets underway, leaders and officials need to be careful where they tread. Let's see if lawmakers in 2007 pursue some serious reform as it pertains to ethics. LW