40 million dollars in NEW charity care offered by SCH projected over ten years? Evidence suggests not
Is this another demonstration of erroneous information presented by SCH that may have mislead the State of Illinois. This information was used by the Health Facilities Planning Board to make a fact based decision. However it appears the facts were not correct. This information was so important to SCH that they included it in the April 28th report to the hearing board.
In fact the State Agency Report was corrected by the State in part because the charity care portion was not updated. The Planning Board's approval was based on SCH false assertions not facts, therefore a viable argument might be made to discard the decision by the State. The 40 million dollar announcement for charity care created a great amount of Publicity however evidence suggests it did not create new money toward charity care but instead is just a projection percentage of net revenue due to an increase of population. (The more people you have in Will County the more will use SCH, therefore revenue will increase) From 2002 to 2005 revenue at SCH increased at least 26 percent.
SCH projects future revenue growth, the more your net revenue grows the more you must provide to charity care, SCH after all is a nonprofit organization.
SCH Net Revenue
(Millions)
2002 $146,598,472
2003 $160,746,998
2004 $164,264,278
2005 $184,227,709
Charity care in 2005 was 2.1 million, projected out over 10 years would equal 21 million dollars Charity care in 2006 was 1.9 million, projected out over 10 years would equal 19 million dollars Charity care in 2007 was 2.7 million, projected out over 10 years would equal 27 million dollars
So in order to equal 40 million dollars over 10 years based on 2007 Charity care SCH would have to provide only 13 million dollars additionally over that 10 year time frame,
(27 mil + 13 mil = 40 mil)
It comes down to another 1.3 million dollars per year.
If revenue continues to grow then one can might conclude that on a percentage basis no additional charity care would be provided at all over a 10 year time frame.
I don't think the people of Joliet realized these facts when they heard the announcement of 40 million dollars of charity care.
Also after looking through notes it appears that at the hearing on July 1st SCH stated that: "the land we acquired in 2004 even before I-355 was announced". So legally they do not say under oath that they did not KNOW about I-355. They just said they bought the land before it was ANNOUNCED. It does not change the fact that the property was purchased in 2004 by SCH as stated under oath.
