Worse than I Imagined

That was my reaction when I saw the bottom line number for September.  A 349,000 loss in just one month so early in the year!  The District has lost over half a million dollars in 3 short months (585k to be more 8precise).  The variance to budget is over three quarters of a million dollars in just one quarter (780k to be more precise).  And this is with the added benefit of an additional 40k per month because the IGT funds are boosted over the planned budget.  Stebbins wants me to believe that she can accurately forecast the intricacies of a deal 20 years out requiring a commitment of over 20,000,000 dollars to the Zimmermans and an operating budget exceeding 1,000,000 dollars per month and she cannot even come close to the mark on a budget that she prepared less than six months ago!

Mark my words, the District is going to be stuck holding the bag (Stebbins has her 18 month severance – a 400-500k golden parachute plus pension benefits)  when, the distinct part contribution is not enough to make up for the acute care losses (and that assumes there is any contribution to be had in the first place).  Then the District will have to test the escape clause and woe to the taxpayers of Alameda when they find out how expensive this deal (Waters Edge) ultimately becomes.  Remember, the Waters Edge deal adds not a single SNF bed for the taxpayers of the District to benefit from; in fact, it raises the price and limits the availabiltiy of SNF beds within the District boundaries.

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About egorelick

Gadfly. Former City of Alameda Healthcare District Board member.
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