UNC Health Care/Rex Hospital’s $34 Million Mistake in Franklin

I’ve written about problems with for-profit Franklin Regional Hospital’s efforts to move closer to Wake County where the population growth and wealthier households are located.  Franklin Regional is owned by H.M.A., Inc., one of the largest  for-profit hospital chains in the country.

Today I obtained a letter from UNC Health Care/Rex Hospital which commits our public healthcare system to paying for $34 million of the costs of H.M.A’s proposed new hospital.  Feel Rex, as a subsidiary, is different from UNC Health Care?  Check out the letterhead’s logo.  Money made or held by Rex is controlled by its parent, UNC.

Why North Carolina taxpayers should be helping a gigantic for-profit hospital chain make even more money is simply beyond me.  HMA’s Franklin Regional alone made $11.3 in profits in 2006 and $10.9 million in 2005.  HMA’s CEO, Joseph V. Vumbacco, has been paid $17 million over the last five years and owns over $13 million in company stock.

H.M.A’s SEC filing where they talk about their mission provides:

“For our existing hospitals, we seek to increase our operating revenue by providing quality health care necessary to increase admissions and outpatient business.”

Guess they also seek to boost revenue by getting taxpayers to foot some of the bill when they build a new building.  Good for them and their CEO –  but not good for us.