Sean Connaughton, President and CEO of the Virginia Hospital and Healthcare Association, states that the Commonwealth “must no longer ignore the growing fiscal challenges facing this dynamic and critical industry.”
News reports also have reported that Virginia hospitals are seeking a healthcare “provider tax” Virginia hospitals, many of whom are for-profit companies or highly-compensated not-for-profit entities.
As Secretary of Transportation, Mr. Connaughton authorized an agreement with a private company allowing it to impose tolls on the existing Midtown and Downtown Tunnels. The tolls will generate billions in company revenues, but its rates are widely agreed to be excessive: Mr. Connaughton and his successor paid the for-profit operator more than $200 million to reduce. The catch—if the Commonwealth builds other transportation facilities in the area (e.g., the long-sought Patriot’s Crossing), it must compensate the for-profit operator for any lost revenue, potentially hundreds of millions of dollars.
During his tenure, Mr. Connaughton authorized an agreement with a for-profit company to build a new, four lane divided Rt. 460 between Petersburg and Suffolk. The for-profit company has been paid $300 million for a road that cannot qualify for federal permits.
Mr. Connaughton authorized similar deals with for-profit companies for use of the Eastern Shore Spaceport and the long term lease of a private marine terminal in Portsmouth.
Will Mr. Connaughton bring this same approach to Virginia hospitals?
Given Mr. Connaughton’s very recent track record in devising means and methods to commit literally billions of dollars of public funds and mandatory “user fees” to private, for-profit entities, I would encourage the General Assembly to carefully review any hospital proposals for provider taxes, additional funds of the Commonwealth, or other forms of public support for the profitable, and the properly compensated, hospitals.
– Letter from Chris Spanos/Henrico
Share
Contributors
