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  1. TopTop #1
    Barry's Avatar
    Barry
    Founder & Moderator

    Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    More trouble in River City


    Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    The former chief financial officer at Sonoma West Medical Center said a key hospital benefactor asked him to “falsely portray” the hospital’s finances to show positive net profit for the hospital, according to a whistleblower lawsuit filed this week.

    The lawsuit against Sonoma West Medical Center was filed Monday by Douglas Goldfarb, who served as CFO from Nov. 30, 2015 to June 6, 2016. It is the latest legal complaint against the embattled hospital, one that echoes charges made in a lawsuit filed two months ago by the hospital’s former chief nursing officer, Cheri AnDra.

    As Sonoma West Medical Center officials said with AnDra’s lawsuit, they could not comment on the legal challenge because it involved personnel matters. Both Goldfarb and AnDra are represented by the same Bay Area attorney, Daniel Bartley.

    The suits allege millionaire west county software entrepreneur Dan Smith, the hospital’s largest donor and most consistent financial supporter, is using the hospital as a testing ground for his “defective” tablet-based electronic medical records system called HarmoniMD.

    Smith, who is president of the medical center’s board of directors, wrote in an email he legally was unable to speak about personnel matters cited in a lawsuit. In the past, Smith has dismissed accusations he is seeking to profit from the hospital, citing the millions of dollars he has donated or loaned the hospital over the years, including a $3 million donation earlier this summer.

    AnDra and Goldfarb argue the cloud-based electronic medical records system often produced serious errors that “endangered patients lives.” The two executives claim their concerns about the records system led to retaliation and ultimately their forced departures.

    But Goldfarb’s complaint went farther. Goldfarb said he was asked to “cook the books” to show the financially strapped hospital was doing better than it was.


    Continues here
    Last edited by Barry; 08-05-2016 at 01:52 PM.
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  3. TopTop #2

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Oh my!
    And after all those predictions of success.
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  5. TopTop #3
    Ted Pole's Avatar
    Ted Pole
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Sorry to see this happen, but maybe it's time to cut the losses and turn it into a tasting room/retail/hotel/tasting room/artist studios/tasting room.

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  7. TopTop #4
    luke32
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Clearly we need an investigative journalist to get to the truth on this one!
    Last edited by Barry; 08-06-2016 at 04:37 PM.
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  8. TopTop #5
    jbox's Avatar
    jbox
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Quote Posted in reply to the post by luke32: View Post
    Clearly we need an investigative journalist to get to the truth on this one!
    What a great idea! The problem is finding an impartial one interested in the unvarnished truth rather than backing into his own preconceived notions.
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  9. TopTop #6
    luke32
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Below is a letter from today's Press Democrat.

    Does anyone know what the letter writer is referring to when he talks of a current Palm Drive Health Care District board member having been in "constant communication" with the former Chief Financial Officer and knowing about the "major problems" within the hospital, etc?

    It seems like it'd sure be interesting if I could understand it.

    EDITOR: How can Palm Drive Health Care District board members be proud of their recent decisions, especially the five-year management services agreement they signed with Sonoma West Medical Center and their recent approval of a second contract with Pipeline Health?

    Now the public has learned of a second whistleblower lawsuit, filed by the fired CFO, which lays bare the motive of the key players in this situation (“Lawsuit: Hospital donor dishonest,” Friday). This is especially important because a current director on the health care district board claims to have been in constant communication with this CFO. He claims to have spent more time on the floor of the hospital than either the CEO or the chairman of the Sonoma West Medical Center board. He knew of the major problems within the hospital but continued to give glowing reports to his fellow board members.

    The whole situation would be humorous if it weren't so serious and costly to the entire district.

    GARY HARRIS
    Forestville
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  10. TopTop #7

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    And here's another from the "IJ " who predicted unmitigated success:

    I was shocked to see the front page of today's Press Democrat used as a shakedown vehicle for a disgruntled employee lawsuit against the Sonoma West Medical Center. The article noted that the litigant will "accept" $250,000 to make this inaccurately called "whistle blower" lawsuit disappear.

    I interviewed litigant Douglas Goldfarb when he was CFO about hospital revenue. Unlike other businesses, hospitals can only estimate, not accurately predict, how their bills will be reimbursed by insurers. Reporter Martin Espinoza should have understood this, and the meaninglessness of Goldfarb's allegations that the hospital asked him to "cook the books."

    Anyone can file a lawsuit. Hospitals are legally unable to respond. This meritless lawsuit is empowered by the PD’s irresponsibility in publicizing a one-sided, unsubstantiated story on its front page.

    Where are the PD's professional ethics? Employers, including the areas major hospitals, are regularly hit by shakedown lawsuits by disgruntled employees. When was the last time the PD put a story about the filing (as opposed to the proof in court) of a disgruntled employee lawsuit?

    West County's independent hospital, with its life saving emergency room, is struggling against a system that has stacked the decks for large hospitals in urban areas. Shame on the Press Democrat using its front page as a megaphone for a shakedown lawsuit that will make this struggle even harder.

    I was shocked to see the front page of today's Press Democrat used as a shakedown vehicle for a disgruntled employee lawsuit against the Sonoma West Medical Center. The article noted that the litigant will "accept" $250,000 to make this inaccurately called "whistle blower" lawsuit disappear.

    I interviewed litigant Douglas Goldfarb when he was CFO about hospital revenue. Unlike other businesses, hospitals can only estimate, not accurately predict, how their bills will be reimbursed by insurers. Reporter Martin Espinoza should have understood this, and the meaninglessness of Goldfarb's allegations that the hospital asked him to "cook the books."

    Anyone can file a lawsuit. Hospitals are legally unable to respond. This meritless lawsuit is empowered by the PD’s irresponsibility in publicizing a one-sided, unsubstantiated story on its front page.

    Where are the PD's professional ethics? Employers, including the areas major hospitals, are regularly hit by shakedown lawsuits by disgruntled employees. When was the last time the PD put a story about the filing (as opposed to the proof in court) of a disgruntled employee lawsuit?

    West County's independent hospital, with its life saving emergency room, is struggling against a system that has stacked the decks for large hospitals in urban areas. Shame on the Press Democrat using its front page as a megaphone for a shakedown lawsuit that will make this struggle even harder.
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  12. TopTop #8

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    He's referring to something that was said at a PDHCD board meeting. I guess you had to be there (unless there are further lawsuits).

    Quote Posted in reply to the post by luke32: View Post
    Below is a letter from today's Press Democrat.

    Does anyone know what the letter writer is referring to ...
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  14. TopTop #9
    beshiva's Avatar
    beshiva
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    if you have to Ask where are the PD's professional ethics, then you don't know the PD. they violate their own policies when it comes to ethics, language, content or any investigative journalism. they are a joke..so if we are all hoping to get some sort of story of what's going on at the SWMC, we're gonna have to rely on other forms of journalism.

    Quote Posted in reply to the post by Dick (quoting Jonathan): View Post
    ...Where are the PD's professional ethics? ...
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  16. TopTop #10
    jbox's Avatar
    jbox
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Quote Posted in reply to the post by beshiva: View Post
    if you have to Ask where are the PD's professional ethics, then you don't know the PD. they violate their own policies when it comes to ethics, language, content or any investigative journalism. they are a joke..so if we are all hoping to get some sort of story of what's going on at the SWMC, we're gonna have to rely on other forms of journalism.
    You and Jonathan can believe what you want to believe. The PD merely reported that a lawsuit had been filed by the CFO under the "whistle blower" status. I read this lawsuit and also read the one filed by the fired nursing supervisor. Very serious stuff indeed.
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  18. TopTop #11

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    I hate to sound like a one trick pony, but how many people weighing in on this forum have actually attended any public meetings? I know a lot of people who have attended them for years and I'm guessing that's where the only realistic analysis of what's going on is coming from. If you have watched this play out over the years, there is no way to look at it without a large dose of cynicism and frustration. Sad the taxpayers are ultimately going to have to clean up the mess and that so many people were taken by the con.
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  19. TopTop #12
    Barry's Avatar
    Barry
    Founder & Moderator

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Quote Posted in reply to the post by Dick: View Post
    ... Sad the taxpayers are ultimately going to have to clean up the mess and that so many people were taken by the con.
    Is the public worse off because SWMC gave it another try?
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  21. TopTop #13

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Yes. The costs will outweigh the effort and the divisiveness it has caused, although for those who live outside the district it has all been a philosophical exercise more than anything else.
    The whole "support our hospital" thing, for most, has not had any true cost attached to it, but for the taxpayers of the district -- including and especially those outside Sebastopol -- there is a real cost that will take at least a generation to repay.
    And philosophically, the ends never justify the means. It has been contrived performance art from the beginning.

    Quote Posted in reply to the post by Barry: View Post
    Is the public worse off because SWMC gave it another try?
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  23. TopTop #14
    podfish's Avatar
    podfish
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Quote Posted in reply to the post by Dick - quoting Jonathan: View Post
    ....I was shocked to see the front page of today's Press Democrat used as a shakedown vehicle for a disgruntled employee lawsuit against the Sonoma West Medical Center. T
    .....
    Anyone can file a lawsuit. Hospitals are legally unable to respond. This meritless lawsuit is empowered by the PD’s irresponsibility in publicizing a one-sided, unsubstantiated story on its front page.

    Where are the PD's professional ethics? Employers, including the areas major hospitals, are regularly hit by shakedown lawsuits by disgruntled employees. When was the last time the PD put a story about the filing (as opposed to the proof in court) of a disgruntled employee lawsuit?

    ...
    Shame on the Press Democrat using its front page as a megaphone for a shakedown lawsuit that will make this struggle even harder.
    uh, it's still news. You can complain about the tone of their coverage, but it's still news. When I read it in the PD the shakedown-ness didn't escape me, and it would be patronizing of me to assume that most other readers are too unsophisticated to see that too.
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  25. TopTop #15

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Thanks podfish. Please note that I was quoting someone who is mysteriously absent from this forum.

    Quote Posted in reply to the post by podfish: View Post
    uh, it's still news. You can complain about the tone of their coverage, but it's still news. ...
    Last edited by Barry; 08-09-2016 at 10:20 AM.
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  26. TopTop #16
    Barry's Avatar
    Barry
    Founder & Moderator

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    So with the forgiven loans of millions of dollars and the improved assets, is the balance sheet worse off than it was before it was resurrected? Can you provide some data about that?

    Quote Posted in reply to the post by Dick: View Post
    -- there is a real cost that will take at least a generation to repay....
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  28. TopTop #17

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    The forgiven $6 million loan was for SWMC not the district. SWMC really has no skin in the game when push comes to shove. It can eventually plead poverty and walk away. I'm sure there is some way the district will be stuck with a big steaming heap of whatever debt has been run up and a default on money it has loaned SWMC and that's at least $400,000.

    The district was dragged into paying for upgrades to the facility -- at least $500,000 worth -- that it couldn't really afford and would not have had to do without the drive to reopen the hospital. They are also providing $1 million a year in taxpayer dollars for operations that could be going towards paying down the debt of the district (remember they are still in Chapter 9). I'm sure the upgrades aren't going to make that much difference if (when?) the district eventually has to sell off its assets to pay down the debt.

    I actually heard one of the district board members say of a $400,000 PDHCD debt that "I thought this was a gift," so things are so muddled over there no one is really sure who owes what. Most people don't know where one board stops and another begins and it's even more complicated now with Pipeline involved.

    And over the course of the past few months SWMC has been re-stating its financials and they look worse and worse every time. The only thing keeping it going, i.e. payroll and the payments to the new management company from southern California is a $3 million loan from Dan. But the lines of credit have dried up and I'm sure there won't be much more coming from that direction.

    The hospital lost $800,000 at last report and with all the restatements of financials, it wouldn't surprise me to see that top $1 million.

    I could go on. It's amazing what you can find out by looking at the district board agendas and going to meetings.


    Quote Posted in reply to the post by Barry: View Post
    So with the forgiven loans of millions of dollars and the improved assets, is the balance sheet worse off than it was before it was resurrected? Can you provide some data about that?
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  30. TopTop #18
    rossmen
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Thanks dick, you are especially well informed (and I have a guess of who you are)! Your posts will be even more powerful if you share more about your identity.

    As a long time hospital skeptic, a very infrequent meeting attendee, a long time outer sebtown resident who has lots of personal experience with palm dh... I am ready to let go. Stop the bleeding, shut it Down! As far as I can tell, vultures are feeding on the carkas, and parcel owners of the district will pay for the feast, to the detriment of things like, affordable Housing! I'm not here to cast dispersions on anyone's intentions. Butt logic has been lost to this discussion for years, and that's understandable, since it's about life and death. May we all in the end chose death, since there is no other choice.

    Quote Posted in reply to the post by Dick: View Post
    The forgiven $6 million loan was for SWMC not the district. ...
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  32. TopTop #19
    beshiva's Avatar
    beshiva
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    i guess if relying on the so called experts who got the ball rolling, all the money raised in good faith,(and that was no small chump change) and all the money which will never be returned and those people have to consider it a wash, all the embattled arguments now about who did what and when...all the innuendos, maybe outright lies, and deception---
    if ALL of that's ok, Then i suppose the public is no worse off than before this debacle.

    Quote Posted in reply to the post by Barry: View Post
    Is the public worse off because SWMC gave it another try?
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  34. TopTop #20

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Identity is a crutch my dear rossmen. But thanks for the props.

    Quote Posted in reply to the post by rossmen: View Post
    Thanks dick, you are especially well informed (and I have a guess of who you are)! Your posts will be even more powerful if you share more about your identity.....
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  35. TopTop #21
    theindependenteye's Avatar
    theindependenteye
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    This is Elizabeth -- I just got home from SWMC after my second hip replacement, went in Monday morning at 6 AM, home Tuesday afternoon by 1:30. I don't want to address the fiscal issues here, especially since I don't have clear factual information. I just want to express my heart-felt gratitude for those who made it possible for me to once again place myself in the skilled and caring hands of the surgeon, anesthesiologist, PA, the staff MD's, the crew of PT people, and above all, the nurses and those other wonderful people who come when you need them. Yesterday afternoon I looked out the window from my bed and saw Joan Marler out in the central atrium, moving among the greenery and flowers, touching and encouraging them. There is no better metaphor for this hospital. -- Elizabeth Fuller
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  37. TopTop #22
    frlee41
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Your headline is horribly misleading, inappropriate and irresponsible. Nothing has been proven but your heading implies that the "allegation" is based on the known truth. This is known as defamation, not exactly exemplifying "conscious community."

    By the way the cost of SWMC is only slightly born by taxpayers.

    There has been serious problems with the startup including problems around billing and collection. The zeal to open may have not been matched by the expertise to manage the hospital. The new management will hopefully get everything headed down the right track.

    As for "benefactor" Dan Smith. Here is a person so devoted to having a hospital for his community that he has donated incredible amounts of his wealth to the endeavor. He was at the hospital every day for at least 12 hours for months before it opened, lending support to the staff and helping out in any way possible. Why? He didn't want people to die because they were forced to be ambulance to an overcrowded, understaffed emergency room in Santa Rosa. He and his wife were truly moved by the unfortunate deaths of local people to whom this occurred. Unfortunately he has been maligned for years by those opposed to the hospital and those opposed to paying the tax for the hospital. The situation reminds me of Hillary Clinton haters who have been fed by Fox news and right wing radio hosts a steady diet of hate.

    These people who are suing are disgruntled employees. The former chief nursing officer who is suing Dan Smith fired so many competent medical people from their jobs at SWMC that it was quite astonishing and unreal. She has quite a checkered history herself including possibly; changing her name to hide her history. The article in the paper may have mistakenly combined the old and new names.
    Note that the two are represented by the same lawyer.
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  39. TopTop #23
    frlee41
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Quote Posted in reply to the post by frlee41: View Post
    Your headline is horribly misleading, inappropriate and irresponsible. ...
    Sorry, I see that you did attribute the statement to the ex CFO.
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  40. TopTop #24

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Oh for god's sake, we really need a hospital emergency room and other services right here in town! If we can't do better than supply spoiled hippies and tourists with another tasting room/retail/hotel/tasting room/artist studio/tasting room, we'd better drop our pretenses of being a progressive community that cares about our people.

    Quote Posted in reply to the post by Ted Pole: View Post
    Sorry to see this happen, but maybe it's time to cut the losses and turn it into a tasting room/retail/hotel/tasting room/artist studios/tasting room.
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  42. TopTop #25
    luke32
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    The following are honest open minded questions, not designed to be biased or to further stir the pot.

    1) Has SWMC"s Intensive Care Unit yet reopened?

    2. Does anyone know what good medical policy says about surgery in hospitals with no ICU?
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  43. TopTop #26
    jomo
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    In reality the taxpayers have not been, nor will they be, obligated for any additional costs for reopening the hospital or its operation thus far or in the future. All commitments made to support the hospital have used the existing parcel tax. The tax can not be raised without a vote of the entire district. There has not been any additional debt incurred by the District (aka taxpayers). There have been large donations made by individuals who believe the hospital is needed and are hopeful that it can operate successfully.

    We have a shortage of hospital beds and emergency department capacity in Sonoma County. Emergency departments in Santa Rosa at times have long wait times, in part due to the downsizing Sutter did when their new hospital was built. Without SWMC those wait times would be longer and the shortage of hospital beds more severe.
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  45. TopTop #27

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Whose reality are you referring to? You contradict your first sentence with your second sentence that states, "All commitments made to support the hospital have used the existing parcel tax." Sounds to me like obligations for the taxpayers. That is also money the district could use to pay down the debt incurred in the name of the taxpayers of the district.
    Don't forget the little surprises that keep popping up like the extra money the district gave SWMC for facility upgrades that SWMC promised it would be fund. There would have been more debt if the county would have allowed the district to borrow more money on future tax revenues.
    And some of those donations have mysteriously turned into loans. Somebody is going to be held accountable for all that debt eventually.
    The rest of the stuff about emergency beds is a fiction. Sonoma County Emergency Services did an entire presentation about that before the district entered into the management services agreement back in 2014 if I recall correctly.


    Quote Posted in reply to the post by jomo: View Post
    In reality the taxpayers have not been, nor will they be, obligated for any additional costs for reopening the hospital or its operation thus far or in the future. All commitments made to support the hospital have used the existing parcel tax. ...
    Last edited by Barry; 08-10-2016 at 12:38 PM.
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  47. TopTop #28
    podfish's Avatar
    podfish
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Quote Posted in reply to the post by Dick: View Post
    Thanks podfish. Please note that I was quoting someone who is mysteriously absent from this forum.
    sorry for the sloppy editing of the [Quote] tags, leading to mis-attribution... at least I didn't get derogatory about the poster!
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  49. TopTop #29
    vlondi
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Quote Posted in reply to the post by frlee41: View Post
    As for "benefactor" Dan Smith. Here is a person so devoted to having a hospital for his community that he has donated incredible amounts of his wealth to the endeavor.
    Anyone that is "donating" millions towards a business that he/she has other investments in (like primary software used to run the business) has ulterior motives. It may be something beneficial to the business, it may be something beneficial only to the one with the software.
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  51. TopTop #30
    jbox's Avatar
    jbox
     

    Re: Ex-CFO: Sonoma West Medical Center benefactor said ‘cook the books’

    Quote Posted in reply to the post by vlondi: View Post
    Anyone that is "donating" millions towards a business that he/she has other investments in ...
    Right, Dan Smith developed and owns the software used to run the hospital. He did not tolerate any criticism of his program and will not allow another established system to take its place.He hopes to work out the bugs and sell this to other hospitals. So, in spite of his undeniable altruism, there is a big underlying financial motive.
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